Business credit cards can be beneficial to businesses that need cash on hand to cover larger expenses. However, not everyone is eligible for business credit cards, and you have to be operating under a certain capacity to qualify for specific business banking products.
Some people are also reluctant to give banks their Social Security Number (SSN) and would prefer to give their Employer identification number (EIN) . To apply for a business credit card, one of the things you’ll need is an EIN. Additionally, there are some corporate cards that you can apply for that require an EIN only.
However, others require your SSN too. In this guide, we’ll take a look at how to secure a business credit card using your EIN only.
What is an EIN?
An EIN is an employer identification number and is a mandatory piece of information for businesses that employ others. This number helps the IRS keep track of business accounts, income, and tax filing and returns. EINs are also useful to business owners as they help to separate business and personal expenses, which can become mixed up especially in the early phases of starting a business.
Although some credit card companies will also require additional information over and above an EIN, there are some corporate cards out there that will be granted based only on your EIN. Let’s take a look at a few below.
Examples of EIN-only business credit cards
Some banking and credit service providers differentiate between corporate and business credit cards. Business credit cards usually require more information than just your EIN. However, providers offering products such as corporate credit cards will likely only require your EIN for credit approval. The below credit cards will only approve customers upon provision of their EIN.
The following are two of the best corporate credit cards on the market that only require your EIN and are great for smaller businesses. Before you apply for these, you should be aware that the interest rates and costs may change over time, so it’s worth looking into these again closer to the time of application.
Brex Card
If you’re a start-up company and require a credit card but only want to supply your EIN, the Brex card might be the perfect option for you. This credit product is specifically for start-up companies that need access to credit cards despite having only received seed funding. Businesses that have as little as $50,000 in a business bank account can apply for this type of credit card. However, if you are a self-funded entity, you will need to have a business bank balance of at least $1 million in order to qualify for this card.
There are also several rewards associated with the Brex Card, including cash back on things like travel, restaurants, and software subscriptions.
Ramp Card
A Ramp Card is a credit card for small businesses that will allow you to start building your business’s credit score. The card requires businesses to have at least $75,000 in a business bank account before they apply. One of the perks of having a ramp card is that you get 1.5% cash back on all the purchases you make using the card.
Before applying, however, it’s worth noting that businesses must pay back the balance in full at the end of every month. The Rampart is an example of a credit product that requires only your EIN to apply for.
Divvy Business Credit Card
This card is also great for getting rewards on restaurants and hotels and only requires your EIN to apply for the card. This card is for slightly more established businesses, as the balance needs to be fully paid at the end of each billing cycle. You can also set spending controls for different employees in the company, making it easier to keep track of your business expenses.
Expensify Business Credit Card
The Expensify card offers loads of rewards to businesses and only takes a few minutes to apply. Companies get their own concierge during the application process and get cashback on various business expenses. There is also the option to apply for this business card using your EIN only.
Benefits of getting a business credit card with your EIN only
When you apply for a business credit card using only your EIN, you make it a lot easier to manage your business expenses and can also start building your business credit. When you apply for a business credit card using your EIN only, you will also not be held personally liable for any defaults on your business credit card.
This also means that business owners can keep their personal credit history and credit score separate from their business credit history. Therefore, if an individual wants to purchase a house and apply for a home loan, their business credit history will not be associated with their personal one, meaning that it will not impact the decision made by the home loaners.
When you use your SSN to apply for a business credit card, such as if you are a sole proprietor or a self-employed individual, you risk conflating your personal and business credit history. This is why it is advisable to lookup your EIN and apply for it as soon as you decide to open up your own business. Having access to an EIN will make applying for a business credit card a lot easier and will ensure that your credit scores are kept separate.
How to build business credit with your EIN
There are several ways in which you can start building your business credit using your EIN only. When you get your EIN, you can apply for business bank accounts and business credit accounts. Your EIN will also monitor the accounts under the business name and will help the IRS track your revenue and any tax claims.
To ensure that you build a good credit history for your business, make sure that all your business credit card payments are made on time. This is especially important if you have been approved for a business credit card using your company’s EIN. Conversely, obtaining an EIN is also the first step in building a credit history specifically for your business.