Who can apply for a business credit card?

Quick insights

• Anyone who makes a profit from goods or services may be eligible to apply for a business credit card.
• Self-employed individuals may apply with a social security number (SSN) if they don’t have an employee identification number (EIN).
• Different business credit cards have different reward programs, welcome offers and annual fees.

Generally, anyone who has a business can apply for a business credit card. This includes freelancers, independent contractors, self-employed business owners and gig workers.

Using a business credit card may be a helpful way to separate business and personal expenses, access a line of credit, manage daily business operations and earn rewards points on everyday business purchases. Read on to learn more about eligibility for a business credit card and what the approval process looks like.

Who’s eligible for a business credit card

Corporations, LLCs (limited liability companies) and partnerships are common formal business structures that may be eligible for business credit cards. But what about small businesses or self-employed individuals?

Luckily, you don’t necessarily need to have a formal business to apply for a business credit card. If you sell goods and services for a profit, you could be eligible.

Even if you haven’t yet earned profit from your business, you may still apply for a business credit card. Below, we break down examples of small and self-employed businesses that are typically eligible for business credit cards.

Self-employed business owners

Sole proprietors are self-employed individuals who do business activities but don’t register as any other type of business. Their business assets and liabilities are not considered separate from their personal assets.

Here are just a few examples of sole proprietorships:

• Personal trainers
• Tutors
• Bakery owners
• Online clothing resellers
• Housekeepers
• Consultants
• Hair stylists
• Nail technicians
• Plumbers

Freelancers or independent contractors

Freelancers and independent contractors are self-employed business owners who are usually hired by other companies on a contract basis. You might freelance for virtually any type of business; here are a few common examples of freelance workers:

• Writers and editors
• Graphic designers
• SEO specialists
• Social media managers
• Videographers
• Photographers
• Translators
• Accountants
• Virtual assistants

Gig workers

Gig workers take on short-term work assignments, and they may also choose to apply for business credit cards. Some of the most common gig workers are rideshare drivers and food delivery drivers, but other examples include:

• Construction workers
• Caregivers
• Online tutors
• Pet sitters

And the list goes on—any sort of job that isn’t on an hourly or contract basis might be classified as gig work.

How to apply for a business credit card

To apply for a business credit card, you’ll need to provide both personal information and details about your business. While formal businesses typically apply with an EIN, sole proprietors and other self-employed individuals may use a personal SSN.

You’ll likely need to provide the following information to fill out a business credit card application:

• Business name, address and contact information
• Tax ID (EIN or SSN)
• Number of years in business
• Industry
• Number of employees
• Annual revenue (can be $0 if you have yet to earn money)

Keep in mind that credit card issuers may consider your personal credit score with your application. It's important to provide up-to-date information on your application; wrong or missing details may cause a credit card issuer to reject an application.

Choosing the right business credit card

Your regular purchases and spending habits will dictate which business credit card makes the most sense for you.

For example, if your employees travel often, it may make sense to find a credit card that offers travel rewards. Or if you’re the sole employee of your business, you may want to avoid credit cards with high annual fees and interest rates.

Here are a few areas to consider before choosing which business credit card to apply to:

• Cash back: Many business credit cards offer either a flat rate of cash back on all eligible purchases or cash back at an accelerated rate for specific categories (like shipping and advertising purchases made with social media sites and search engines). If you tend to spend money on purchases in specific categories, try to find a credit card that will provide cash back at an accelerated rate for your everyday purchases.
• Travel rewards: If you or your employees frequently travel for work, it may be beneficial to choose a credit card that allows you to earn reward points or airline miles with every purchase. Some credit cards also offer additional travel benefits as well, like lost luggage reimbursement or auto rental insurance.
• Welcome offers: Some business credit cards offer a certain amount of cash back or credit card points if you meet specific criteria within your first few months after account opening. Shop around to see which card’s welcome offer may benefit you the most.
• Fees: If you’re self-employed, you’re responsible for annual fees and any penalty fees associated with late payments. Research all fees associated with your credit card of choice before applying.

In summary

Whether you’re a part of a large corporation or the only employee of your business, you may benefit from using a business credit card. There are many business credit cards on the market, so it’s important to do your research before applying for one.

Compare our business credit cards to help find the right one for your business.