Discover how startup business credit cards with no credit EIN only build credit, separate finances, and earn rewards with tips.
One of the most exciting but also intimidating events of my life was launching a company. I recall the restless evenings full with many spreadsheets, the scurry to compile materials, and the ongoing financial anxiety. Having founded several businesses as a serial entrepreneur, one ongoing difficulty I had in the early going was obtaining company credit cards.
It seemed almost impossible without a credit history. Rejections infuriated me, and I worried about how I would handle financial flow for basic needs. Having personally negotiated these choppy waters has given me great wisdom.
I will examine important issues, benefits, disadvantages, and the application procedure in this extensive guide together with the options available for new business credit cards with no credit and EIN only. I promise you, if I can accomplish it, so can you.
Let’s dive in.
If you’re in a hurry, here’s the list:
- Capital One Spark Classic for Business – Earn 1% cashback; $0 annual fee first year, then $39.
- Brex Card for Startups – No annual fee; entrepreneur rewards; no personal guarantee; integrates with accounting tools.
- Divvy Business Card – No annual fee; no credit check or personal guarantee; expense management tools; cashback.
- Stripe Corporate Card – No fees; rewards program; no personal guarantee; fast approval.
- Ramp Corporate Card – Cashback; no personal guarantee; no fees; real-time spending analytics.
- American Express Blue Business Cash™ Card – Earn 2% cashback up to $50K/year, then 1%. No annual fee. Extended buying power.1
Let’s dive in.
Article Breakdown
What are Startup Business Credit Cards?
Specialized financial tools meant especially for company costs are business credit cards. Like personal credit cards, they provide a line of credit for handling cash flow, covering regular expenses, and making purchases. Unlike personal credit cards, business credit cards do, however, frequently have extra benefits such as greater credit limits and incentive programs catered to categories of business expenditure.
No Credit vs. Poor Credit
Understanding the difference between poor and no credit can help you better appreciate the specifics of starting business credit cards with bad credit. While low credit describes a history of late payments, delinquencies, or other negative marks on a personal or business credit report, no credit is the absence of any known credit history. Although both situations make getting credit difficult, lenders view them differently.
What Is an EIN?
The Internal Revenue Service (IRS) assigns a special identity to companies called an Employer Identification Number (EIN). For companies, it’s like a Social Security Number (SSN). Tax uses, recruiting staff, opening company bank accounts—all of which demand an EIN. An EIN can also be very important for entrepreneurs in building company credit separate from personal credit.
Why Use EIN Only Business Credit Cards?
Using an EIN helps you to segregate your business finances from personal ones, therefore safeguarding your personal assets and streamlining tax preparation.
Using a credit card linked to your EIN will help you begin to create a profile of business credit. This can help to guarantee future more expansive financing possibilities.
Some company credit cards permit acceptance based just on EIN, thus you might not have to show your SSN or go through a personal credit check.
Advantages of Startup Business Credit Cards with No Credit or EIN Only
Startups’ Accessibility
These credit cards can provide new companies with no financial guarantee access to required funding free from depending on personal credit scores. Purchasing inventory, covering running expenses, or funding development prospects all depend on this.
Creating Corporate Credit
Appropriate use of a business credit card will help to build a strong credit record for your business. Better credit terms, bigger credit limits, and later on more financing alternatives can all follow from this. Having built credit will be quite helpful as your company expands.
Maximize Business Credit Card Expense Management
Features and capabilities meant to assist control costs abound on business credit cards. This covers thorough expenditure reports, expense classification, and accounting software integration—all of which help to simplify financial administration.
Optimize Business Value with Custom Credit Card Reward Programs
Many company credit cards provide reward systems catered to commercial use. This might call for discounts on purchases connected to businesses, travel incentives, and cashback. Effective use of these incentives can enhance the running value of your company.
Drawbacks to Consider
Higher Interest Rates
Compared to personal credit cards, business credit cards—especially those available to startups without credit history—may have higher interest rates. Understanding the terms and controlling your balance will help you to prevent too high interest costs.
Fees
A few business credit cards could carry late payment fees, transaction fees, or annual fees. Review the fee schedule before applying to be sure the benefits exceed the expenses.
Limited Options
Although new companies without credit history can apply for business credit cards, the alternatives might be more limited than those of established companies or people with good personal credit.
Best Startup Business Credit Cards with EIN Only and No Credit
1. Capital One Spark Classic for Business
Features: Flexible credit criteria; earn 1% cashback on all purchases; pay $0 annual fee for the first year then $39 yearly.
Pros: Easy approval for companies with minimal credit history, cashback benefits, and no foreign transaction costs.
Cons: Low initial credit limit and high APR.
2. Brex Card for Startups
Features: No annual charge; awards catered to entrepreneurs; no personal guarantee needed; interacts with accounting tools.
Pros: High rewards rate; no personal credit check; strong instruments for money management.
Cons: Needs a minimum bank balance for approval; could not be appropriate for very early-stage firms without large capital.
3. Divvy Business Card
Features: No yearly charge; no credit check or personal guarantee; tools for managing expenses; cashback benefits.
Pros: Strong emphasis on cost control and flexible reward program.
Cons: Approval standards can be strict; connection to a company bank account is necessary.
4. Stripe Corporate Card
Features: No fees, rewards program; no personal guarantee; fast approvals for qualified companies.
Pros: Instant issuing without fees and flawless connection with Stripe’s system.
Cons: Approved depending on business income and cash flow; limited to companies paying Stripe.
5. Ramp Corporate Card
Features: Cashback earnings; no personal guarantee; no fees; real-time spending analytics.
Pros: Thorough cost control without fees and prizes for every transaction.
Cons: Needs a business bank account and approval grounded in company financial situation.
6. American Express Blue Business Cashâ„¢ Credit Card
Features: 0% intro APR on purchases for 12 months; cashback earnings; no annual fee.
Pros: Competitive rewards program and introductory offer, no fees.
Cons: Requires a personal guarantee and approval based on personal credit score.
EIN Only Business Credit Card Application Process
Applying for a business credit card without credit history and using EIN just is really simple. These actions will help you to navigate the process:
First Step: Get an EIN
If not already, apply for an EIN on the IRS website. Usually requiring just a few minutes, this is a simple procedure. Make sure your company’s name, address, and structure are among all the required details always at hand.
Second Step: Prepare the Required Paperwork
Compile any files maybe needed for the application procedure. This can comprise financial statements or bank accounts in addition to legal business records including Articles of Incorporation or Partnership Agreement.
Third Step: Investigate and Weigh Possibilities
Invest some time looking at and contrasting several company credit card choices. Think through elements including eligibility criteria, fees, and incentive programs.
Fourth Step: Apply
After selecting a qualified company credit card, complete the application form using accurate, current information. You might also have to supply your EIN at this stage.
Fifth Step: Await Clearance
Depending on the credit card provider, the approval process could last several days to many weeks. If needed, supply any further material or records asked for.
Sixth Step: Get and Activate Card
Your company credit card will be mailed once approved. Activate the card according to directions before using it.
Related: How To Get A Business Credit Card For LLC
Advice on Handling Business Credit Card Debt
Appropriate Use
- Make your payments on time always to avoid late penalties and interest costs. Your credit score benefits as well from this.
- Track your expenditures to make sure you stay under your budget and prevent debt building.
- Make use of whatever rewards programs your card offers. For your company’s expenses, this can offer extra value.
Review Statements Often
- Review your credit card statements often for mistakes or illegal expenditures. Notify any variations right away.
- Examine your spending patterns using your statements to find places where you may maximize expenditure or minimize costs.
Preserve a Good Credit Balance
- Aim to have your credit card balances low in relation to your credit limit. Your credit score will rise and interest payments will be lowered as result.
- Steer clear of credit card maxing out. High use rates could lower your financial flexibility and credit score.
Wrap-Up
Startups must secure a company credit card with no credit history utilizing an EIN if they are to establish their financial footing. This will help them to separate personal and corporate resources, build business credit, and provide rewards and financial management tools. Understanding alternatives, going over terms, and safely handling credit will let you use these cards to help the expansion of your firm. As your company expands, feel free to ask for help negotiating the application procedure.
Frequently Asked Questions (FAQs)
1) Can I get a business credit card without credit?
Yes, there are business credit cards meant especially for startups and new companies without credit history. Often requiring an EIN, these cards might take business revenue or banking history into account.
2) Can you get a business credit card when you first start your business?
When you first launch your company, you can obtain a business credit card—especially if you have an EIN and satisfy other qualifying requirements. Certain issuers provide cards meant especially for startups.
3) Which bank is easiest to get a business credit card?
Known for providing company credit cards accessible to entrepreneurs without credit history include banks including Capital One, Brex, and Divvy. Every has approval standards, thus it’s important to evaluate alternatives and decide which best fit your company.
4) Can I get a corporate credit card with bad credit?
Yes, some corporate credit cards rely on business financial data, income, or banking contacts rather than personal credit check basis approval. One such is the Ramp Corporate Card and the Brex Card.
Updates:
- I love the American Express Blue Business Cash™ Credit Card because it offers exceptional cash back rewards, which helps me maximize my business savings. ↩︎
Note: This article’s content is for informational use only; it is not meant to be used as financial or legal advice. For tailored advice on your particular circumstance, kindly see a specialist.
