The world runs on credit. In fact, according to the Federal Reserve, over 80% of Americans have at least one credit card. And while credit cards are a preferred method of payment for most people, it’s also important to consider the role of credit cards for businesses. Keep reading to learn all about business credit cards and how to get one.

What can you do with a business credit card?

A business credit card can be used to do pretty much anything you’d do with your personal credit card. It’s an important tool in any business’ owners financial toolbox, and makes a wide variety of essential transactions simple. For most business owners, credit cards serve two primary purposes:

  • Fund everyday expenses: Instead of whipping your debit card out each time you need to buy something for your business, consider using your credit card. As we’ll cover below, using your credit card for everyday purchases can help you reap tons of credit card rewards.
  • Make large purchases: Whether it’s buying new equipment or paying for a business trip, every business owner will need to make some big purchases from time to time. When those situations arise, we recommend using your credit card.

What are the benefits of getting a business credit card?

Before we dive deeper into how to get a card, let’s start with why you should get one. Here are a few of the top reasons to get a business credit card:

  • Earn rewards: One of the top reasons to use a credit card is to take advantage of the rewards program associated with your credit card. Depending on the type of card you have, these perks can include things like cash back, airline miles, hotel points, and more.
  • Separate your finances: Separating business and personal finances is a must for business owners running an LLC or a corporation. Even if that doesn’t apply to you, it’s always a good idea to keep your business and personal expenses separate. Using a business credit card is an easy way to do just that.
  • Build business credit: Having a good business credit score is just as important as having a good personal credit score. With good business credit, you’re more likely to get approved for loans with lower interest rates. One of the best ways to build your business’s credit history is by using your credit card and paying it off each month.
  • Fast access to working capital: Taking out a business loan or applying for a line of credit are two ways to get working capital, but receiving those funds takes time. If you need to make a purchase as soon as possible, use your credit card. Just make sure you’re able to pay your credit card bill each month.

How to find the right business credit card for your needs

There are so many cards out there that all of the options can make your head spin. These are a few of the things to consider when you’re trying to find the perfect credit card for your business:

  • Interest rates: When you’re looking into getting a business credit card, the first thing to check is the interest rate. The higher the interest rate, the higher your monthly payment (assuming you don’t pay your entire credit card bill off each month). You’ll likely be able to get a lower interest rate if you have a better credit score.
  • Annual fee: Many business credit cards have an annual fee. We find that credit cards with higher annual fees typically have better perks, but that’s not always the case. Make sure you’re able and willing to pay an annual fee before applying for a credit card.
  • Benefits and perks: Finding the right credit card isn’t just about finances—you also need to consider the perks of having the card. For example, if you travel frequently for business, you should look for credit cards that offer airline miles or hotel points.

How to apply for a business credit card

The good news is that credit card companies have made it as easy as possible for business owners to apply for a credit card—and nowadays, more applicants than ever get approved! Follow these steps for how to get a business credit card:

1. Determine your eligibility

The business cards that offer huge benefits aren’t offered to just anyone—you need to prove to the credit card company that you’re reputable and responsible. This starts with your personal credit score. The credit card company will also want to know how much your business brings in each month. Make sure your business’ financials are in good condition before applying, to give you the best odds at getting the card (and the credit limit) you need.

2. Gather all necessary documents

Along with personal information, you’ll need to prove your business’s existence and success in order to get a business credit card. Be prepared to provide your business’s name, annual revenue, number of employees, employer ID number, and estimated spending needs.

3. Apply

As long as you have all the necessary documents, applying for your credit card only takes a few clicks. Every major credit card company lets you apply online, and many companies have mobile apps so you can get started anywhere, any time.

4. Wait for approval

Now all you need to do is sit back and wait to get approved. Thanks to technological advances, approval often only takes a few minutes when you apply for a credit card online. You’ll receive your credit card in the mail a few days after you’re approved, and then you’re ready to go!

See what North One can do for your business

Regardless of your business’s size, North One is your best bet to simplify your finances. We make business banking easy by helping business owners manage their day-to-day banking on the go. Plus, opening an account only takes a few minutes! Apply online today to start working with North One.

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