Can You Get a Business Credit Card As a Sole Proprietor?

As a solo entrepreneur, you can receive a company credit card. Partnerships, LLCs, companies, charitable organizations, and sole proprietorships are just a few of the types of businesses that can get a business credit card. You can apply even if your single proprietorship is only doing part-time freelancing work.

Your personal credit history will have a significant impact on whether you are approved for a business credit card, so check your credit score to determine your chances of acceptance before applying. Your personal credit profile will also play a role in determining your initial credit limit and interest rate if you are authorized for a business credit card.

What You Should Know Before Applying for a Business Credit Card as a Sole Proprietor.

Small business credit cards are offered to people with different types of credit.

A company credit card can be applied for by sole entrepreneurs with any credit rating. If you have bad credit, this includes secured business cards.
You must provide your business name, business type, and yearly business-related revenue in addition to the typical personal information such as your address and Social Security number or Tax ID number. You can indicate $0 for annual income on the application if you’ve been the alone owner for less than a year.

The longer you’ve been in business, the better your chances of getting approved are.

Issuers will want to know how long you’ve been in the company when you apply for a business credit card. Proprietorships that have been in operation for a while are less of a credit risk than those that are just getting started.

Any delinquent business credit card transactions are individually accountable to sole proprietors.

There is no legal distinction between you personally and your sole proprietorship in the eyes of a credit card provider. Almost all business credit cards need a personal guarantee declaring that you are responsible for any debts that your company is unable to repay.

How a Business Credit Card Could Help a Sole Proprietor

While a solo entrepreneur can use a personal credit card for company reasons, a business credit card allows you to keep track of your personal and business costs on separate accounts. In addition, compared to personal credit cards, corporate credit cards provide greater company-specific benefits and privileges. Furthermore, if you wisely utilize your company credit card, you may boost your chances of being approved for future business loans with lower interest rates.

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