The Definitive Guide To Business Credit Cards with EIN Only

Business credit cards with EIN only help separate your credit from your business credit record, making this one of the best ways to build a credit history for your company. This allows you to take loans for your business under your company name with better deals. In this post, we'll walk you through applying for business credit cards without using your SSN, the best lenders, the loan types, and how to build credit using them.

Best EIN Only Business Credit Cards

Capital One Spark 2% Cash Plus

The Spark Cash Plus from Capital One is a great business credit card that offers 2% cash back on all business purchases. They also offer a variety of perks and benefits, including cash bonuses for businesses that use the card frequently.

• Intro APR: none
• Regular APR: NA (All charges are due and payable in full every month.)
• Annual fee: $150
• Other features:
  • Pay-in-full business credit card
  • 2% unlimited cash back on all purchases
  • A 1-time bonus of $1,200 after spending $30,000 during the first 3 months
  • They refund your annual fee if you spend at least $150,000
  • Free employee cards
  • Can apply with SSN, EIN, or TIN

American Express Business Platinum Credit Card

The Business Platinum Card from American Express has a high annual fee cost but offers some of the best perks in the entire industry. This includes access to the Membership Rewards program and 5x points when you use the card to pay for flights and hotels.

• Intro APR: none
• Regular APR: 19.49% to 27.49%
• Annual fee: $695
• Other features:
  • 5x points on business travel expenses
  • 1.5x points on eligible purchases
  • 1x points on other purchases
  • Free business lounge access around the world
  • No foreign transaction fees

Ink Business Preferred Credit Card

The Ink Business Preferred is one of Chase's best business credit cards. This business card includes a massive sign-up bonus and 3x points on various business purchases. The Chase app also lets you monitor the account and order employee cards for free.

• Intro APR: none
• Regular APR: 21.24% to 26.24%
• Annual fee: $95
• Other features:
  • 3x points on eligible expenses
  • 100,000 bonus points after spending $8,000 during the first 3 months
  • Free employee cards
  • Manage limits and employee cards from the app

Southwest Rapid Rewards Performance Business Credit Card

The Southwest Rapid Rewards Card comes with some of the best benefits for business travel. This card comes with travel discounts and even allows you to order employee cards connected to the same account, making this one of the easiest business credit cards to get with an EIN number.

• Intro APR: none
• Regular APR: 21.49% to 28.49%
• Annual fee: $199
• Other features:
  • Issued by Chase
  • Massive airline discounts
  • 9,000 anniversary points
  • 4x, 3x or 2x points on eligible expenses
  • 1x points on other purchases
  • Free employee cards

US Bank Business Triple Cash Rewards Credit Card

The US Bank Business Triple Cash Rewards offers a staggering 3% cash back on all eligible purchases. This includes purchases at gas and EV stations. The best part about this card is that there's no annual fee, making it one of the best deals you can get for your small business.

• Intro APR: 0% for 15 months
• Regular APR: 19.24% to 28.24%
• Annual fee: none
• Other features:
  • 5% cash back on prepaid hotels and car rentals
  • 3% cash back on eligible purchases
  • 1% cash back on all other eligible purchases
  • Free employee cards

US Bank Business Platinum Card

This card offers many features that are ideal for startup businesses. Plus, you'll earn rewards on everyday business expenses.

• Intro APR: 0% for 18 months
• Regular APR: 17.24% to 26.24%
• Annual fee: none

Can You Get A Business Credit Card With Just Your EIN Number?

Yes, it is possible to get a business credit card using only your Employee Identification Number, but it may be more difficult than getting a card with an SSN. It's worth noting that while your EIN might be the primary identifier, credit card issuers often look at various factors when considering an application. These might include your business's financial health, its history, and sometimes even your personal credit.

Why Some Issuers Don't Approve Applications With Only An EIN

When you apply for a business credit card, issuers want to ensure you're good for the money. Using only an EIN offers credit card companies a limited view of a business's creditworthiness. This means that without your SSN, they don't have a track record to determine if you're a risky bet. By having your SSN on file, businesses can more easily identify you if there's any suspicious activity on your account. This way, they can be sure you are using the card and will repay the debt. Plus, businesses, especially new ones, can be unpredictable. By having the owner's personal credit in the mix, issuers have a safety net if things go south. Because of these risks, some issuers may require additional financial information, and others may simply not offer business cards to applicants without an SSN.

#DidYouKnow Personal credit bureaus are not the same as business credit bureaus.

Why Would A Small Business Get A Business Credit Card With An EIN And Not An SSN?

• No SSN. Not every business owner has an SSN. This could be due to various reasons, such as being an international business owner or simply not having acquired one.
• Avoid Commingling. This is when business and personal finances mix. Applying for a business credit card with only your EIN ensures you keep your expenses separate, which also helps during tax season.
• Build Business Credit. You can develop your business's credit profile using an EIN-only card. As this profile strengthens, your business might qualify for larger loans, better interest rates, and improved terms from suppliers.
• Professionalism. A credit card under your business's name alone conveys to vendors, clients, and employees that your venture is a legitimate and established entity.

#DidYouKnow Usually, credit card companies primarily use your Social Security Number (SSN) to assess your personal credit history.

Should You Apply For A Business Credit Card With Your SSN Instead?

If you're in a position where you need credit to grow your business quickly, it may be advisable to apply under your Social Security number or maybe your ITIN. This allows you to stand as a guarantee so that your business can get the finances it needs in a much shorter time. Using your SSN does have its merits. First, it might be easier to get approved. Many lenders look at personal credit scores to determine eligibility. Second, you might get access to more offers or better rates. But it's not without its pitfalls:

• Personal Liability. By using your SSN, you might be personally liable for business debts. So, your personal assets could be at risk if things go south. Ouch!
• Credit Impact. Business expenses and credit utilization could end up impacting your personal credit score.

While an SSN might offer easier access and potentially better deals, there are risks to weigh. An EIN-only business card provides a layer of separation between personal and business finances.

How To Get A Credit Card With An EIN

Most Common Requirements

• A Valid EIN. This is a no-brainer. You need to have a legitimate and valid EIN assigned to your business. That's the core requirement.
• Business Type & Structure. EIN-only credit cards are not just for big corporations. Whether you're a sole proprietor, an LLC, or a corporation, you stand a chance.
• Financial History. While these cards might not dive deep into your personal credit, they aren't blind either. They'll peek at your business's financial health. Stable income, good cash flow, and a history of paying bills on time can nudge things in your favor.
• A Business Bank Account. Having a business bank account is a must to manage transactions and balances. This keeps things neat and tidy. Remember, the separation of personal and business finances is key!
• Operational Duration. How long has your business been up and running? While there isn't a one-size-fits-all answer, companies that have been operational for some time often stand a better chance.

How To Apply For An EIN-Only Credit Card

1. Find the right card for your business. A few options are available, so compare a few before deciding.
2. Gather the required information. When you apply for a business credit card, you must provide your business's EIN and other basic information.
3. Apply online. Once you have all the required information, you can apply for your business credit card according to the lender's flexibility.
4. Start using your new business credit card. Once they approve you, you can use your business credit card to make purchases and earn rewards.

#CaminoTip A business loan is a better alternative to business credit cards because it offers a longer repayment term, which can help businesses manage their cash flow.

The Pros And Cons Of Business Credit Cards With EIN Only

Pros:

• It allows you to build a credit record for the business. Applying with your EIN separates the company's credit score from your personal credit score, allowing you not to hold liability when your business qualifies for other credit products.
• Great for separating business and personal expenses. While this helps with real-world cash flow issues, it also helps keep the records separate in the background.
• Perfect if you don't have a Social Security number. This could be because you're an investor or working on a visa in the United States.

Cons:

• Sole Liability. Even though you're using an EIN, the business owner is usually on the hook for unpaid balances. If your business hits a rough patch, you're still personally responsible for the card debt.
• Potentially High APRs. Business credit cards sometimes have higher annual percentage rates (APRs) than personal cards. If you carry a balance month-to-month, this could be a costly oversight.
• Annual Fees. Sure, some personal credit cards have annual fees too. But the fees can be significantly higher with business cards, especially those with more perks. It's essential to weigh the costs against the benefits.

Types Of Business Credit Cards With EIN Only

Corporate Business Credit Cards

These credit cards can come without a personal guarantee, meaning you can apply with just your company's EIN. However, most issuers have strict rules about what companies can use their EINs to apply as it's riskier for them.

Corporate Store Credit Cards

Consider applying for a corporate store credit card if your business frequently visits a particular store or company. This is a credit facility offered by the store itself so that you can make your purchase and pay for the items later. You can use these corporate store credit cards to empower employees. Empowering employees this way can help improve employee buy-in and productivity from the ground up.

Corporate Gas Cards

If your business has a fleet of vehicles or frequently travels for work, you can consider getting business fuel cards with EIN only. You can apply for this kind of credit card without your Social Security number, making it perfect for building a credit record for your business.

Prepaid Business Credit Cards

This kind of credit card allows you to load cash into the card for employees to use during the business's daily operations. Just like a corporate credit card, this kind of card can empower staff within your business. The best part of having a prepaid credit card is that you can get all the perks of having a credit card even if you have no credit score. Since you are not borrowing finances from a bank or financial institution, you can build a credit record without borrowing anything.

Alternative-ID Business Credit Cards

In some cases, issuers will accept an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number. The IRS also issues this unique identifier and allows you to build a credit record for your business separately from your personal finances. That said, business loans are a better alternative because they typically have a lower interest rate, have a longer repayment period, and are easier to approve.

Employee Identification Number 101

What Is An EIN?

In simple terms, an EIN (Employer Identification Number) is a unique nine-digit identification number that is essential to register your business with the IRS. It is sometimes also referred to as a Federal Employer Identification Number (FEIN). It serves as a unique identification number for a registered business or corporation. The IRS or the Internal Revenue Service uses this number primarily when companies report their business and personal income separately. The EIN is for businesses what the Social Security number is for people. In this way, it serves as a unique identifier for the business to start building its own credit history and credit score. This is an essential aspect of entrepreneurship, as business loans are some of the most useful ways to finance the growth of a business.

How To Get An EIN

1. Determine Eligibility
   • You may apply for an EIN online if your principal business is in the United States or US Territories.
   • The person applying online must have a valid Taxpayer Identification Number (SSN, ITIN, EIN).
2. Visit the IRS Website
   • Navigate to the official IRS website.
   • Locate the EIN Assistant tool, which can guide you through the application process.
3. Complete the Application
   • Choose the type of entity you're applying for (e.g., sole proprietor, corporation, LLC).
   • Answer the subsequent questions about your business, including details about the responsible party, business details, and the reasons for applying.
4. Submit the Application
   • Once you've completed all the necessary information, review your answers and submit the form.
   • If all goes well, you'll receive your EIN immediately after completing the online session.
5. Store the EIN Securely
   • Once issued, your EIN will not expire.
   • Print a copy of the confirmation notice for your records, and make sure to store it in a secure location. You'll use this number for business-related activities, including opening a bank account, hiring employees, and filing taxes.

How To Build Business Credit With Your EIN

Open A Business Bank Account

This is important as it creates a financial record under your company's name. When applying for a business bank account, you can use your Social Security number or find a bank account that lets you register with your EIN only and reports to consumer credit bureaus. This is the way to go if you can register your business bank account with your EIN only.

Never Miss A Payment

When you have your business credit card, you must manage it well to reflect positively on your credit history. The best way to maintain your business credit card is to ensure you never miss a payment. You can choose between making the minimum monthly payment or settling the entire debt fully. While some accounts can let you set up an automatic debit order, others require you to pay manually every month. One of the most effective methods to never miss a payment is to set a reminder a few days before so that you can make every payment in advance. Paying your credit card off in full every month will improve your creditworthiness and help build an impressive credit score for your business. This credit score is separate from your personal credit score and allows your business to apply for additional credit facilities.

Only Apply For The Credit You Need

As time goes by, your credit score will improve. While this allows you to apply for additional products from different credit card issuers, it's important to only apply for the credit you need. This is because too many applications reflect negatively on your credit report. This is particularly an issue if you make too many applications that keep getting rejected. Each credit inquiry shows up on your credit report and shows banks and lenders that you desperately need cash. This can even decrease your overall credit score.

Use Credit Sparingly

The amount of credit you use shows banks and lenders how much credit you can afford. For example, if your business credit card has a limit of $10,000 but only uses around $1,000 of it monthly, the bank recognizes that your business is in a strong financial position. This strong financial position directly translates to an increased credit score. At the end of the day, your credit score is there to showcase your financial position as a business. If you don't need to borrow money, it tells the banks that your business is doing well.

Another Way Of Funding Your Business

A small business credit card with EIN is one of the best ways to build a credit profile for the business. Using your EIN helps build a credit score that can help secure business financing later on. However, credit cards are just one avenue to fund your business. Business loans offer another viable path; for many entrepreneurs, they're the lifeline to kickstart or expand their operations.

A business loan can provide a significant cash injection without the constraints of credit card limits, often with structured repayment plans tailored to your business's cash flow.

As a dedicated small business lender, Camino Financial understands the unique needs and challenges business owners face in today's industry. Apply For A Business Loan!