- As a business owner, having access to credit can streamline your cash flow, enable you to grow more quickly and offer valuable rewards.
- To keep your business and personal finances separate, you may not want to apply for a business credit card with your personal SSN.
- Depending on the size of your business, you may be able to apply for a business credit card using your EIN only, though opportunities are rare and may be difficult to qualify for.
When you apply for a business credit card, most issuers will ask for your Social Security number (SSN) as part of the application process. It means that applying for a business card will result in a hard inquiry on your personal credit report, which isn’t something everyone wants.
Fortunately, if you’re looking to apply for a business credit card without revealing too much personal information, there’s a workaround to explore that allows you to pick up a business credit card with just your EIN: Apply for a corporate credit card instead of a small business credit card. Corporate cards, despite having stricter application requirements, often allow applicants to apply with an Employer Identification Number instead of an SSN.
Unfortunately, if you’re just starting your business, the corporate card option probably doesn’t apply to you. Corporate credit cards often require high revenue and good business credit. Your other option to explore is a business credit card that doesn’t require a personal guarantee.
Here are your options when applying for a credit card with an EIN only.
Can you get a business credit card without an SSN?
In almost every case, you’ll fall short when applying for a business credit card without an SSN. Most small business credit cards require a personal guarantee, meaning you’re personally responsible for any debt that your business cannot pay off. This is why credit card issuers often check your personal credit before issuing you a business credit card or small business loan — and, in order to perform a hard credit inquiry on your personal credit, they need your Social Security number.
Leslie Tayne, financial attorney and author of Life & Debt, says that applying for a business credit card without an SSN can be an arduous process.
“If you don’t have a Social Security number, you will have to fill out a great deal of paperwork and go through some bureaucracy,” says Tayne. “Even after that, you may still have a difficult time finding a business card lender that will approve you for a card without a Social Security number.”
When can you get a business card without an SSN? If you apply for a corporate credit card, you may not need to provide a personal guarantee. But corporate credit cards are different from small business credit cards, and a corporate card may not be the best fit for your business.
Not only that, but becoming eligible for a corporate card often requires annual revenue in the millions of dollars and at least 15 or more users of the account within the organization. Certain business structures are also required for companies who want to become eligible for a corporate credit card, and sole proprietors and small businesses rarely make the cut.
Benefits of business credit with an EIN only
Some business owners want to apply with just an EIN instead of an SSN because they don’t want their personal credit score to affect their eligibility. Others want to separate personal and business finances — and to keep any potential business finance issues from negatively affecting their personal credit.
Why would a business’s financial difficulties affect your personal credit? Two reasons. First, applying for a business credit card that requires a personal guarantee means that you’re personally responsible for any balances added to the card. This includes credit card debt that your business cannot afford to pay off in full.
The second reason is more complicated. Businesses have credit scores just like individuals do, and in some cases, lenders report small business credit card activity to both the business credit bureaus and the personal credit bureaus. This means your business credit card could appear on your personal credit report. If you miss a payment on your business card or run up high balances during low-cash-flow months, your business credit card activity could hurt your personal credit score.
So, when you’re considering the benefits of business credit with just an EIN, one of the biggest advantages is not having to mix your personal and business finances.
What business credit cards can you get with only an EIN?
Some credit card issuers allow you to apply for a business credit card with an EIN only instead of an SSN, although options are limited. Here are some EIN only business credit cards that are worth looking into.
Corporate business credit cards allow you to take on liability through your business. You may be able to get a corporate credit card without a personal guarantee. In other words, your business is liable for all of the credit card debt. In some cases, corporate credit cards don’t require an SSN, meaning you can get business credit cards with an EIN only.
- The Brex 30 Card allows applications without an SSN. Be aware, though, that it requires a linked business bank account with a minimum $50,000 balance, so it won’t be a fit for all small businesses.
- You don’t need to submit an SSN when applying for the Ramp Visa Corporate Card* if you’re a business owner without an SSN — you will, however, need to provide a copy of your foreign passport and proof of your address. Owners who have an SSN are required to provide it for legal compliance purposes.
- With the BILL Divvy Corporate Card, all owners are required to submit their SSNs during the application process, but there are no hard inquiries, and activity is not reported to the consumer credit bureaus.
Generally speaking, corporate cards have stricter application rules. In most cases, only certain types of businesses are eligible, and your business may need to earn a certain profit margin each year. Many issuers extend business credit with just an EIN, but only C-corps, S-corps, LLCs or LLPs registered in the U.S. are eligible to apply. If you’re a sole proprietor, you might have to work a little harder to find the right corporate card for your business.
Why not consider a corporate store credit card at a store you frequent regularly? Some corporate store credit cards don’t come with a personal liability requirement, making them excellent EIN credit cards. Corporate store credit cards tend to offer specific perks like discounts on purchases, cash back options and points and rewards.
Another option is a corporate gas card or a fleet fuel card, which may allow your company to apply without a personal guarantee. For example, you can get the Shell Small Business Card* with your EIN if your business takes in $1 million in revenue every year and has at least one year of business history.
Just remember that a corporate gas card or fleet fuel card will only work for purchases across a brand of gas stations and stores, so the utility of these cards is limited.
Business credit cards generally require personal guarantees stating that the cardholder — not the business — is responsible for the debt on the account. For that reason, banks typically require an applicant to supply a SSN.
However, there are a few business credit cards that don’t require a personal guarantee. You may be able to use an EIN rather than a SSN when applying for these cards, but all applications are different, and it’s up to the individual institution.
Alternatives to help keep business finances separate
Keeping your business finances separate from your personal finances makes a lot of sense. After all, maintaining separate accounts for your business can help you stay organized for tax purposes, and it can keep you from accidentally merging business expenses with your personal ones or vice versa.
Having a separate business credit card can also help you earn rewards on specific business expenses as well as all your other spending. And some business credit cards offer perks geared specifically for businesses.
If the main driver for getting a business card with an EIN is your desire to limit any impact on your personal credit, however, you can also consider applying for a traditional business card that doesn’t report to the consumer credit bureaus. You’ll need to list your SSN on your application, but cards that fall under this umbrella won’t report your balances, your payments or other information to Experian, Equifax or TransUnion.
Reportedly, card issuers like Bank of America, Citi, PNC, U.S. Bank, BBVA and Wells Fargo do not typically report any of your business card activity to the credit bureaus — not even late payments or accounts in default.
This means that even though you’ll have to list your SSN on your business card application, a card like the CitiBusiness® / AAdvantage® Platinum Select® Mastercard®* or the Bank of America® Business Advantage Travel Rewards World Mastercard® credit card* could be worth considering.
Other card issuers like American Express and Chase are known for only reporting business activity on your personal credit reports if your account becomes delinquent. This means a card like the Ink Business Preferred® Credit Card or the American Express® Business Gold Card may have no impact on your personal credit beyond the initial credit inquiry unless you fall behind on your monthly payments.
Should you apply for a business card with your SSN?
Since it’s difficult to get business credit with just an EIN, should you go ahead and apply for a business credit card using your SSN?
While doing so may not be ideal, this is often the best option for small businesses and sole proprietors who won’t be able to get a business card any other way. Not only can applying with your SSN get you access to a business line of credit, but you can also start building business credit, and the best business credit cards earn you rewards for each dollar you spend on your business.
Also, keep in mind you shouldn’t face a negative effect on your credit score if you use your card responsibly, never make a late payment and keep your business credit utilization ratio on the low side. This is how you should be managing your credit card account anyway if you hope to benefit from a business credit card over the long run.
The bottom line
Technically, it’s possible to get a business credit card with just an EIN. But it’s not easy, and the eligibility requirements are stringent. It’s not a viable option for the vast majority of small business owners.
You’re better off applying for a top small business credit card with your SSN and either choosing an issuer that doesn’t report business card activity to the consumer credit bureaus or one that only reports delinquent behavior (which you should plan to avoid anyway).
If you apply with your SSN, you’re personally guaranteeing any debt you put onto your business card. This may not be the outcome you hoped for, but you won’t have to worry, provided you pay your bill on time and use credit responsibly.
*Issuer-required disclosure statement
The information about the Ramp Visa® Corporate Card, Shell Small Business Card, Citibusiness / AAdvantage Platinum Select Mastercard, the Bank of America® Business Advantage Travel Rewards World Mastercard® credit card and Ramp Visa® Corporate Card has been collected independently by Bankrate. Card details have not been reviewed or approved by the card issuer.
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Understanding Business Credit Cards and EIN
The article discusses the importance of having access to credit as a business owner, the separation of personal and business finances, and the challenges and options related to applying for a business credit card using an Employer Identification Number (EIN) instead of a Social Security Number (SSN). It covers the potential benefits of obtaining a business credit card with only an EIN, the limitations and eligibility criteria for corporate credit cards, and the alternatives to help keep business finances separate. Additionally, it explores specific business credit card options that may allow application with an EIN only, as well as considerations for applying with an SSN and the impact on personal credit. The article emphasizes the difficulty of obtaining a business credit card with just an EIN and provides insights into the best course of action for small business owners.
Key Concepts Covered
- Access to Credit for Business Owners: Having access to credit can streamline cash flow, enable faster business growth, and offer valuable rewards.
- Separation of Personal and Business Finances: The importance of keeping personal and business finances separate to avoid potential negative impacts on personal credit.
- Challenges of Applying with EIN Only: The difficulty and limited opportunities for applying for a business credit card using only an EIN, as most issuers require a personal guarantee and SSN.
- Corporate Credit Card Options: Eligibility criteria, requirements, and limitations for corporate credit cards, including high revenue and specific business structures.
- Benefits of Business Credit with EIN Only: Reasons for applying with only an EIN, such as avoiding personal credit score impact and separating personal and business finances.
- Specific Business Credit Card Options: Examples of business credit cards that may allow application with an EIN only, including corporate business credit cards and corporate store credit cards.
- Alternatives to Keep Business Finances Separate: Exploring alternatives to maintain separation between personal and business finances, such as traditional business cards that don't report to consumer credit bureaus.
- Considerations for Applying with SSN: Insights into the impact of applying with an SSN, building business credit, and managing credit responsibly.
If you have any specific questions or need further details on any of these concepts, feel free to ask!