Can You Get A Business Credit Card Without A Business? (2024)

Applications for business credit cards commonly have a section to provide an employer identification number. Credit card issuers require corporations and partnerships to provide their EIN, but they’re not always required to apply for a business credit card.

If you don’t fall under a corporation or partnership and don’t have an EIN, but you earn your own income, you’re likely considered a sole proprietor. For example, the term “business” applies to the following ventures among others:

• Sellers who sell goods on sites like Depop, Facebook Marketplace or Poshmark
• Neighborhood dog-walkers
• Freelancers, writers and other creatives
• App-based rideshare and delivery drivers
• Independent contractors, like consultants
• Personal tutors

When filling out a business credit card application, simply select “Sole Proprietor/Proprietorship” and provide your personal Social Security number in lieu of an EIN.

There’s no regulation against using a personal credit card for your business purposes. However, there are some things you should know before doing so. And for many business, credit cards are invaluable because of the increased access to financing they offer.

According to the Federal Reserve’s 2022 Small Business Credit Survey, 29% of businesses sought out borrowing power in the form of a credit card. But the additional spending power isn’t the only benefit. Getting a business card for business-related purchases offers a few advantages.

Establishing Business Credit

Similar to how using a personal credit card helps you build your personal credit, a business credit card can help build credit for your sole proprietorship. This can be helpful in accessing lines of credit later on if you decide to formulate a limited liability corporation (LLC), or other business entity as you grow your business.

Although not all card issuers report business card data to consumer credit bureaus, some might inform consumer credit bureaus of late payments, delinquencies or default. These kinds of credit marks negatively affect your personal credit.

Accessing Heightened Card Perks

Business credit cards offer incentives for self-employed individuals and business owners. For example, you might be offered a generous sign-on bonus after meeting a minimum spending requirement within a finite period.

Similarly, you could earn more rewards for certain category purchases related to your business, like travel, office supplies, shipping or business-related subscription expenses.

Separating Business-Related Expenses

Finally, a business credit card is a convenient way to bucket all of your business-related expenses onto one card, without mixing in your personal expenses. If you’re running a side gig or are a freelancer, keeping this separation makes it easier to organize your finances, and see how much you’re actually spending toward your business.

Additionally, a dedicated business credit card can help make tax season less of a headache. If you need a list of your business expenses and amounts, for example, you can do so by accessing a credit card report or billing statement without the clutter of your personal expenditures.

As mentioned above, you may meet the criteria to be called a “business” and not be aware. If you’re interested in a business credit card, take the following steps to find out.

1. Check Your Eligibility

Generally, you can apply for a business credit card as a sole proprietor. Note though that both the IRS and SBA state that sole proprietorships are unincorporated businesses, meaning freelancer and other gig workers also qualify. However, it’s always wise to double-check the card issuer’s other eligibility criteria. For example, review the minimum age, income requirements and restrictions for residents of certain states.

2. Compare Business Credit Cards

Upon confirming that you meet the basic eligibility requirements for each prospective card, compare the benefits, rates and fees across your top choices. Weigh the perks, like tiered rewards programs. against any annual fees and note the starting APR of each card. Remember, that the starting APR is not necessarily the rate for which you’ll be approved.

If one of your goals is to take advantage of a welcome bonus, verify the terms of the offer. Ensure that you can realistically afford its minimum spending requirement within the specified period, and that you can repay it before you’re hit with interest charges.

3. Prepare Your Application Details

Once you’ve narrowed your options, gather supporting documents related to your application. For example, the card issuer might require proof of business income, the number of years you’ve been a sole proprietor, information about your industry or other business-related details.

4. Submit Your Application

You can submit a credit card application at most lenders through its online form. Simply enter your personal and the business information you’ve gathered, ensuring that it’s accurate, and submit it on the card issuer’s website.

If you’re applying for a card from a brick-and-mortar institution, you can also apply in person at a bank or credit union branch. If taking this option, have your business details ready to avoid delaying the process.

5. Wait for a Decision

Although some card issuers offer a nearly instant application decision online, not all do. The bank might require additional time to review your business details to ensure you truly meet its underwriting requirements.

Some issuers offer a decision within minutes for those who have existing business credit, like from a prior business credit card. Other institutions need a few days to review your application regardless of your credit history or years in business.

In either situation, be prepared to provide additional information or clarification to the card issuer, if it’s requested.