Credit Cards

How To Get Business Credit With Ein

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 6 minute read

How To Get Business Credit With Ein? It’s possible to get a company credit card without being personally responsible, but you’ll have a restricted selection of possibilities. As your spending power increases via the use of a business credit card, you’ll be better equipped to make the improvements and changes your company requires. Using a business credit card helps you keep your business and personal finances separate because you’re making these purchases for your company.

As a result, when you apply for a business credit card, card issuers frequently request your Employer Identification Number (EIN) and your Social Security Number (SSN). To acquire a business card with simply an EIN, here’s the information you need.

What is the purpose of an EIN?

In order to identify your business for tax purposes, the IRS issues an EIN to you. You’ll need this number on your business tax returns. In addition to sole proprietorships, companies, small enterprises, private employers, nonprofit organizations, and other commercial entities, this nine-digit number is utilized.

Your Social Security Number (SSN) is similarly nine digits long, but it serves a completely different function. The Social Security Administration (SSA) is responsible for issuing and tracking your Social Security number (SSN). Social Security payouts are also tracked using this number.

When applying for a company credit card, why is your SSN usually required?

When you apply for a corporate credit card, banks and other card issuers will have access to your personal credit history if you provide your SSN. There are several reasons why credit card firms use your SSN to determine whether or not you are a good applicant for the card:

  • Your company’s creditworthiness hasn’t been established yet. Your SSN will be used by the card issuer to perform a personal credit check and evaluate the amount of risk you pose as a borrower if your business is new or has no or minor credit history.
  • If the business collapses, you’ll be held personally accountable for whatever debts you owe. The fact of operating a business is that not every firm succeeds. If your company fails, but you’ve provided your SSN, you may be responsible for the credit card debt you owe.

If you intend to use the credit card only for business purposes, it can make sense to apply for a small company credit card without providing a personal guarantee. If a key individual is ultimately accountable for the expenses, card issuers may wish to check their creditworthiness.

Your EIN isn’t enough to acquire a business card.

There are several advantages to obtaining a company credit card with your EIN. When you use a business credit card, you may benefit from things like increased purchasing freedom and the ability to earn cashback or travel rewards without putting your personal finances at risk in the event that your company defaults on its obligations.
You are applying for a company credit card account and have an EIN:

  • You have a bad credit history or none at all. It may be more difficult to get authorized for a company credit card using your SSN if you do not have a good personal credit history.
  • You want to keep yourself out of trouble. Your SSN is not being used as a personal guarantee of the balance, thus you can’t be held responsible for the business failing if you use an EIN for your business card.
  • Your Social Security Number (SSN) is not valid. An EIN business credit card might open the door to credit card benefits if you are not a U.S. resident and requested an EIN through the IRS using an Individual Taxpayer Identification Number.

What types of business credit cards can you get with only an EIN?

It’s possible to get a business card without providing your social security number (SSN), even though this is the norm for most credit card providers.

Corporate business card

Businesses with yearly revenues of at least a million dollars are eligible for corporate credit cards. Corporate responsibility is a feature of these cards, as the name implies. This means that no one individual is liable if the account is not paid. It follows that, as a result of the business being completely liable for all account charges, it is also entitled to any points and other card privileges that accrue to the account.

A business credit card comes with more detailed reporting capabilities as well. Individually-issued credit cards may be monitored by the company’s accounting department, which will have access to analytics and reporting tools.

With an EIN-only credit card, you’ll need to fulfill the company’s revenue requirements and maintain an excellent business credit rating, among other things to get approved. As a result, small company owners have difficulty using corporate credit cards.

Brex, a Silicon Valley start-up, is reimagining the standard business card in an innovative way. Brex employs an underwriting algorithm to evaluate your eligibility and to establish your limit, whereas a standard corporate card requires a million-dollar income. It utilizes data such as your cash flow, spending trends, and the investors in your company to make its decision, which is linked to your firm’s bank account. Automated spending management and an easy interface with accounting systems are also included. The Brex credit card is now available from the business.

Corporate gas card

If you frequently need to fill up your company’s tank, a corporate gas card like the Shell Small Business Card, which simply requires an EIN, might be beneficial. It is possible to provide several gas cards to your employees and establish fuel restrictions using corporate gas cards (and sometimes even location limits).

When it comes to reporting on the activities of a company’s corporate credit card, corporate gas cards are no different. They have the drawback of being ineligible for all company purchases. Fuel and vehicle maintenance expenditures can also be made using a company’s corporate gas card at the pump.

Prepaid business card

You may also get a prepaid business card that simply requires an EIN. There is no need to provide your Social Security Number because prepaid cards are deemed low risk. While paying with cash isn’t an option, you may use this option to get the convenience and benefits of a credit card when booking trips or placing online orders. In the case that you lose your credit card, you may be able to receive the money-back.

As soon as you’ve obtained the card, you may use it just like any other company credit card. If you put $500 on the prepaid card, you’ll have a $500 credit limit. You’ll need to replenish your card’s $500 credit limit if you run out of money.

If you don’t have enough income to qualify for a corporate card, this can be a decent alternative for an EIN-only business card. If you want to improve your company credit score, a prepaid business card isn’t a good option because the issuers don’t usually record payments to the credit bureaus. Furthermore, your prudent usage of credit cards is hurting your own credit in this situation.

Alternative company credit cards if you’re unable to use your EIN owing to poor credit.

Even if your primary reason for seeking an EIN-only company credit card is a low personal credit score, a secured credit card may be an excellent substitute. Secured corporate credit cards just need you to provide your EIN, but secured personal credit cards still demand your Social Security Number (SSN). With a secured card, your business or personal credit rating will progressively improve as you properly use the card, unlike with a prepaid card.

Secured business card

  • Wells Fargo Business Secured Credit Card. Cardholders may get 1.5 percent cash back or 1 point per dollar spent and receive 1,000 bonus points each month they spend more than $1,000 with this credit card from Wells Fargo. In addition, there is a one-time $0 yearly cost.

Secured personal card

  • Get pre-approved for a Capital One Platinum Secured credit card with no impact on your credit score.
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