Can startup businesses get a credit card?

Summary

• Startups and new businesses may still qualify for a business credit card, even without a long financial history.
• Approval for startup business credit card is often based more on the owner's personal credit history.
• Applicants may be asked to sign a personal guarantee.
• Comparing features like fees, APR, credit limits, rewards programs and employee card options can help you choose the right card.
• U.S. Bank offers several business credit cards with different features, including options focused on rewards, travel benefits or lower interest rates.

Startups can get a credit card, even when they're very new. In fact, some founders apply for a card within days of opening a business bank account or registering as an LLC.

That said, business credit cards may have certain requirements that you want to consider before applying. Here's what you need to know about business credit cards for startup businesses.

What do you need to apply for a business credit card?

The requirements for a business credit card are relatively straightforward. Most card providers ask for just a few pieces of personal and business information when you apply.

A good credit score

A strong credit score is essential to qualifying for a business card, just as it is for any credit card. For a startup, approval is often based more on your personal credit than on your business's financial track record.

So what's considered a good credit score? The criteria vary by card provider, but many business credit cards look for a FICO® Score around 670 or higher.

A personal guarantee

Credit card providers often ask startup founders and small business owners to sign a personal guarantee when they apply for a card. Essentially, the guarantee is a promise that you'll pay the balance even if your business closes or becomes insolvent.

Requiring a guarantee helps card providers reduce the risk of offering credit to a business without a proven track record. It also means you may be personally responsible for the debt, even if your business is structured as an LLC or corporation.

Proof of revenue

While your personal credit is often the main consideration for credit card providers, some might also evaluate your business's revenue. Higher or steady revenue streams suggest your business has the cash flow to handle credit card payments.

Business bank statements, tax returns and invoices or sales records may serve as proof of revenue. Newer businesses may be able to use projected revenue, client contracts or personal income if a provider asks for documentation.

Essential business information

Even if the focus is on your personal credit when you apply for a business card, you'll likely still need to have basic business information, including:

• Your business's legal name
• Your business address
• Contact information for you and any other owners
• Your business's legal structure
• The number of employees
• Your federal tax identification number, if you have one

Check the card provider's website so you can have this information ready ahead of time.

How to choose a business credit card for your new LLC

There are many reasons to get a business credit card. Maybe you want to build business credit or separate business and personal expenses. Or perhaps you want to earn rewards for your business spending or finance a large purchase.

Whatever your reasons, you'll want to compare the following card features to make sure they support your business goals.

Fees

Business credit cards may charge fees, including:

• Annual fee
• Interest charges
• Late fee
• Foreign transaction fee
• Balance transfer fee
• Cash advance fee
• Employee card fee
• Returned payment fee

Knowing what fees a business card charges — and whether you can avoid them — can help you decide if it fits your financial plans.

Interest rates and APR

Comparing interest rates and annual percentage rates (APR) helps you understand the potential cost of borrowing for each card. If you carry a balance from month to month, a card with a lower APR may reduce the amount of interest your business pays over time.

Looking at APR can also help you identify promotions. An introductory 0% intro APR period may help reduce borrowing costs if you're covering a large expense.

Credit limits

A higher credit limit may be attractive if your business needs to cover expensive purchases, such as inventory or equipment, or bridge short-term funding gaps. It can also act as a financial buffer if unexpected expenses arise.

But as a new business owner, you might prefer to start with a lower limit. That option may give you time to learn how the card fits your cash flow while also reducing the risk of accumulating too much debt.

Rewards programs

Finding a business rewards credit card that matches how your business spends money can help get more value from your purchases. For example, some cards may offer higher rewards for expenses you already have, like advertising, shipping or travel.

On the other hand, a flat-rate rewards card — one that offers the same rate on all purchases — may be easier to manage.

Employee cards

A credit card that allows you to issue additional cards to employees can make it easier to manage company expenses and track spending. Choosing a card with this feature now may still make sense even if you don't currently have employees, because it may let you add new users without opening a new account.

When comparing cards, check whether employee cards are free, if you can set spending limits and what reporting tools the provider offers.

How to apply for a business credit card

Once you've researched your options, it's time to apply for a business credit card. The process is generally simple:

1. Gather the necessary personal and business information.
2. Complete the application online, in person or by phone.
3. Wait for the card provider's decision.
4. Receive your new business credit card.

Some applicants receive an approval decision within minutes, while others may wait a few days if the provider needs additional review. Once approved, the physical card typically arrives within about a week, though some issuers offer faster shipping.

In some cases, providers may also allow you to start using the card sooner through a digital wallet or a temporary card number.

Business credit cards from U.S. Bank

U.S. Bank offers a range of business credit cards designed for different priorities, such as rewards, travel benefits or lower interest rates. Reviewing the key features of each card may help you decide which option aligns with your business goals.

U.S. Bank Triple Cash Rewards Visa® Business Card

A cash-back rewards card, the U.S. Bank Triple Cash Rewards Card includes access to U.S. Bank Spend Management. This digital platform offers features to help you monitor and track spending all in one place, such as:

• Accounting integrations
• Card controls
• Real-time analytics
• Receipt capture

U.S. Bank Business Shield™ Visa® Card

The U.S. Bank Business Shield™ Card is designed for businesses looking for a lower interest rate. In addition to an low introductory APR, the card provides cash back on travel as well as benefits like purchase protection and zero fraud liability.

U.S. Bank Business Altitude Power® Visa Signature® Card

A rewards-focused card, the U.S. Bank Altitude Power® Card, provides points on purchases, with additional points available on certain travel purchases when booked directly through the U.S. Bank Travel Center. The card also includes travel-related benefits such as airport lounge access and no foreign transaction fees.

U.S. Bank Business Altitude® Connect Visa Signature® Card

The U.S. Bank Altitude® Connect Card is geared toward business owners who travel frequently. The card earns rewards on purchases such as hotels, airfare and car rentals, and includes travel benefits such as airport lounge access and no foreign transaction fees.

U.S. Bank Business Leverage® Visa Signature® Card

With the U.S. Bank Leverage® Card, you earn rewards on prepaid hotels and car rentals, plus bonus points on your top two spending categories each month. The flexible reward structure makes it easy to get additional value from the purchases you make most often.

Choosing the right business credit card for your startup

A business credit card may help you build business credit, manage cash flow and keep track of expenses. By understanding the application requirements and comparing card features, you can choose an option that fits your startup’s financial needs.

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