How to Get a Business Credit Card with an EIN Only

If you have poor personal credit history or a low rating, then you may want to try to apply without your SSN and using your EIN only. However, not many card issuers will allow this, and it will very likely be more difficult to be approved for a business credit card.

If you try to apply for a business credit card without an SSN, you’ll be required to fill out a large amount of paperwork and jump through hoops. Even then, it may be hard to find a business card issuer who will approve a card without your SSN.

Some cards, such as corporate credit cards, don’t require a personal guarantee. However, corporate credit cards are not the same as small business credit cards, and may not suit your needs.

In addition, corporate credit cards often require you to have annual revenue in the millions, as well as a high number of users of the account. You’ll also need to have a particular business structure in order to apply, which small businesses and sole proprietors often do not have.

Considering how difficult it is to apply for a business credit card without a SSN, why would you want to apply with just an EIN?

Well, there are a few important benefits:

As mentioned, most business credit card issuers will not offer cards without your SSN, however, there are a few possible options.

If you have a business with millions of dollars of revenue and a specific business structure, you may be eligible for a corporate business credit card. With corporate business credit cards, you can apply using only an EIN- but you’ll need to have good business credit (amongst other things).

NOTE: You should be aware that small businesses and sole proprietors often struggle to meet the threshold limits for corporate cards.

The benefit of having a corporate business credit card, if eligible, is that the company is liable, not the individual. On the other hand, as there is no individual associated with the account, all rewards and card perks go to the business.

Corporate business credit cards also have more in-depth reporting, allowing the business to access analytics and tools that show how the cards are being used. They can set limits for each card in order to track spending.

If you’re a regular at a particular store for your business, a corporate store card could be a good option. Some of these don’t require personal liability, meaning you can just use your EIN to apply for it.

Additionally, you may be able to cash in various rewards and benefits, such as discounts, cash-back, and points.

Corporate gas cards, or fleet fuel cards, can be helpful for those who need to fill their vehicle often. Some will only require an EIN, which could be useful for your business.

However, like corporate business credit cards, it does require good business credit in order to be approved. There is also more in-depth reporting, and you can give multiple cards to employees- as well as set fuel and (in some cases) location limits.

Bear in mind, however, that corporate gas cards cannot be used for business purchases that do not include fuel (and occasionally, vehicle maintenance purchases). It’s also important to note that most corporate gas cards only work at specific brands, meaning that you will have limited use of them.

Some traditional business credit cards do not require an SSN when applying, and you’ll be able to apply with an EIN only.

Do your research well as all business credit card applications are different, and the decision will ultimately come down to the individual card issuer.

Some alternative cards will also accept an Individual Taxpayer Identification Number (ITIN) instead of your SSN. This is also issued by the IRS and will allow you to build your business credit rating.

Prepaid business cards can be applied for with just an EIN and, because they’re low-risk, do not require your SSN in order to be approved.

Any credit that you load onto the card can be used for purchases. Once this runs out, you simply reload it with more!

In certain circumstances where you are unable to use cash but are not eligible for a business credit card, a prepaid business card could be a good option. Examples of this include booking travel, or ordering various supplies online.

However, prepaid business cards do not report payments to credit bureaus, as you are funding the credit yourself. Therefore, they will not be able to help your business credit score.

Prepaid business cards can still be a good option if you are ineligible for a corporate credit card, and don’t want to (or are unable to) supply your SSN for a traditional business credit card.

If you’ve looked into it and your circumstances or business mean that applying for one of the above options with only an EIN is out of the question, that doesn’t mean you’re at a total loss. There are other options you can utilize.

If You Have Bad Credit:

• Apply for a secured business card. When applying for a secured business card, you may only be required to share your EIN. When you’re approved, you simply put down a deposit, which then acts as your credit limit. If you eventually decide to close this card, you receive your deposit back. Secured business credit cards are easier to be approved for and have the bonus of being able to improve your business credit over time, as long as you use it responsibly. Eventually, you may even be able to upgrade to an unsecured card.
• Apply for a secured personal card. While you will need to supply your SSN for a secured personal card, if you have bad credit and have been unable to apply for a business credit card, this could be a good option for you. Secured personal cards work in the same way as a secured business card. You put down a deposit, which then acts as your credit limit, and eventually when you close the card you receive your deposit back. The benefit of a secured personal card is that you can build your personal credit score. Eventually, you may be able to upgrade to a better card, or become eligible to apply for a business credit card. On the other hand, a secured personal card will not affect your business credit rating.

Bear in mind that with both of these options, it’s very important that you keep up repayments and make sure they’re on time, or it could negatively affect your personal or business credit rating.

If your main purpose in applying for a business credit card is to separate your business and personal finances, then there is another alternative to the above:

• Apply for a traditional business card that does not report to the credit bureaus. Certain business credit cards will only report to the credit bureaus if you have issues such as late payments. However, the card issuer will still likely require your SSN, which will start a hard credit inquiry on your personal credit rating. You may also need to sign a contract and be personally liable.

Be sure to read the terms and conditions of any card agreement carefully before signing on the dotted line. If you don’t, you may face unwanted and unexpected charges and responsibilities!

No matter what credit card you end up going for, be sure to use it responsibly and only apply for credit you really need. If you apply, and keep being rejected for various cards, this will negatively impact your credit rating.

Any secured business credit card will be the easiest to be approved for, as they don’t typically require good or excellent credit in order to be approved.

No, applying for an EIN will not affect your credit score. An EIN itself is simply a way for the IRS to identify you.

No, you don’t necessarily need an EIN to be approved for a business credit card. You can be approved just by signing up with your SSN, but you should be aware that this will open a hard line of inquiry into your personal credit history.

You’ll need to be a business owner and provide various information about your business. This may include your annual business revenue, number of employees, and how long you’ve been running your business. You’ll also need to provide various personal information, such as your name, address, birthdate, total gross annual income, and SSN.

Having an EIN itself won’t help you build business credit, but it is a step towards doing so. When you apply for business credit, you’ll need your EIN. As long as you are then using your business card responsibly and managing your repayments in a timely fashion, this can help you build business credit.

If you apply for a business card with your SSN, this will link your personal and business finances together- which you may not want to do. It may also affect your personal credit score, depending on how responsible you are with your business card. However, if you are a small business or sole proprietor, this may be the only way to get a business card.

There are no downsides to obtaining an EIN even if you never end up using it, as there are no negative repercussions. Your EIN will always be tied to your business- not to you- and is simply used by the IRS for identification purposes.