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Getting a credit card for your LLC may seem intimidating, especially if you have credit challenges. As the owner of a brand new business, you may not be sure how to apply for or get a new LLC business credit card.
It’s not as difficult as you may imagine, and regardless of your credit scores, you likely have options. We’ll share the best options here.
Here’s How a New Business Credit Card Can Help Your LLC
- An LLC credit card can help your new business separate business and personal finances, and build business credit. You may also earn perks for your business spending.
- A credit card for your LLC isn’t just nice to have: it is often essential.
- Business credit cards can also be an essential source of funding for new businesses, which often find it difficult to access traditional loans. They are available to a wide variety of different types of businesses. Cardholders may also earn rewards points and other valuable perks.
Learn How to Overcome These Possible Roadblocks When Trying to Get an LLC Credit Card
When you start an LLC it’s crucial that you separate your business and personal finances. If you use personal credit cards in your business, or commingle your business and personal finances, the legal protection your LLC offers could be at risk.
But when you’re shopping for an LLC credit card for the first time, you may be worried about whether you can get approved. Here are some common roadblocks entrepreneurs may encounter, and how to overcome them:
No Business Credit History for New LLCs
A brand new LLC won’t have a business credit history. While that makes it more difficult to apply for small business loans and other types of financing, it’s generally not a problem with business credit cards. That’s because most business credit card issuers do not require good business credit scores to qualify.
Personal Credit Problems
Creditworthiness is often important when qualifying for business credit cards. Most issuers require good to excellent credit scores. Here, we’re referring to personal credit scores, like FICO scores. Issuers will often check personal credit with at least one of the major credit bureaus. If you have bad credit or no credit, it will be more difficult to qualify for many business credit cards, even if you are applying for your LLC.
There are exceptions, though, including an option that doesn’t require a personal credit check, and we’ll share that in our top picks.
Lack of Business Income
A new business may not yet be making steady income. That lack of business revenue can be a hurdle if you are trying to get a traditional small business loan. Most lenders (including banks) often want to see sufficient income from the business, backed up with business bank statements and/or business tax returns.
That’s not the case with many small business credit cards. Most card issuers will allow you to apply based on household income, which can include income from a variety of sources, including income from a spouse or member of the household who would help pay the debt if needed.
Again, most small business credit card issuers allow you to include household income from all sources on the application.
Not Knowing the Best Options for New LLC Credit Cards
If you don’t understand how business credit cards work, you may apply for the first card offer you get. Understand your choices, though, and you can shop for the right card based on your business needs.
4 Paths to Get a Business Credit Card for Your New LLC
Again, it’s smart to get a business credit card for your new LLC to separate your business and personal finances. Here are four paths to getting that first LLC credit card. We’ll share our picks for the best credit cards for LLCs shortly.
1. If You Just Started Your LLC
Your goal is to get an LLC credit card as soon as possible. This allows you to make purchases with the convenience of a credit card without commingling your personal finances and business finances. Startup business credit cards are widely available to entrepreneurs with strong qualifications.
2. If You Have Good Credit
If you have good or excellent personal credit scores, you will likely have many choices for your LLC credit card. There are numerous cards available, provided you meet all requirements including income from all sources.
3. If You Do Not Have Good Credit
If you don’t have good credit— whether you have a limited credit history or even bad credit—you still have options, including secured business credit cards or a business charge card that doesn’t require a credit check.
4. If You Have a High Revenue LLC
If you have an LLC that is making a lot of money you may be eligible for a corporate card. These cards are often available to LLCs and corporations, but not to sole proprietors, and require strong documented revenues. One advantage is that they do not require a personal guarantee.
Recommendations for the Easiest Approval Path Based on LLC Situation
If you understand your qualifications and what card issuers are looking for, you have a very good opportunity to get the LLC credit card you need.
If you have good to excellent credit, and sufficient income, you will have your pick of many good choices. With fair credit or even poor credit you still have sold options available.
Best Business Credit Cards for LLCs
Here are seven excellent options for a new LLC business credit card:
1. Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card
The offers an intro APR of 0% for 9 billing cycles on purchases which can be very helpful for financing startup costs for your new LLC. There is also a welcome offer of a $300 online statement credit after you make at least $3,000 in purchases in the first 90 days of your account opening.
This card earns 3% cash back in the category of your choice (for the first $50,000 in combined choice category/dining purchases each calendar year, 1% thereafter), 2% cash back on dining purchases (for the first $50,000 in combined choice category/dining purchases each calendar year, 1% thereafter), and 1% cash back on all other purchases.
And the annual fee is . There is a foreign transaction fee of 3% of the U.S. dollar amount of each transaction
Add offer card Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card
2. Capital One Spark Classic for Business
The offers 1% Cash Back on every purchase and 5% Cash Back on hotels and rental cars booked through Capital One Travel. While many business credit cards require excellent credit scores, this card is more flexible. Foreign transaction fees: None
Add offer card Capital One Spark Classic for Business
3. American Express® Business Gold Card
American Express is known for premier rewards and this card delivers strong value. Earn 4X Membership Rewards® points on the 2 categories where your business spends the most each billing cycle from 6 eligible categories.
Welcome Offer: Earn 70,000 Membership Rewards® points after you spend $10,000 on eligible purchases with the Business Gold Card within the first 3 months of Card Membership.*
Add offer card Amex Business Gold
4. Costco Anywhere Visa® Business Card by Citi
For new businesses that shop at Costco, the can help save money, especially on fuel purchases at Costco. Get 4% cash back on eligible gas and EV charging purchases for the first $7,000 per year and then 1% thereafter. 3% cash back on restaurants and eligible travel purchases. 2% cash back on all other purchases from Costco and Costco.com. 1% cash back on all other purchases.
Add offer card Costco Anywhere
5. Ink Business Premier Credit Card
New business owners looking for a cash back rewards card should consider this card in the Ink line of credit cards from Chase. It offers solid cash back rewards. Earn unlimited 2.5% total cash back on purchases of $5,000 or more and unlimited 2% cash back on all other business purchases. There’s a good sign up bonus as well. Earn $1,000 bonus cash back after you spend $10,000 on purchases in the first 3 months from account opening.
The annual fee is $195 and there is no foreign transaction fee .
All information about the Ink Business Premier credit card card has been collected independently by Nav. This card is not currently available through Nav. To see available business credit cards, please visit Nav.
6. BILL Divvy Corporate Card
This card is a charge card. All charges made on this charge card are due and payable when you receive your periodic statement. The annual fee is .
Add offer card Bill Divvy Corporate Card
7. Nav Prime Card
The Nav Prime Card* a business charge card. There is no credit check or security deposit required. Link your business checking account for daily repayment.
The Nav Prime Card is reported as a tradeline to major business credit bureaus as a charge card which can help you establish business credit. The Nav Prime Card is available exclusively to Nav Prime members.
The Nav Prime Card is not available in CA, NV, ND, or SD.
Callout for Nav Prime
Applying Smart to Get Approved
The best way to increase your chances of approval is to understand your options. Check your personal credit scores so you know where you stand.
When you apply for a business credit card you will be asked for information about your business, including the name of the LLC, business address, Employer Identification Number (EIN), and business revenue.
You’ll also be asked about personal information such as your Social Security number, and information about your personal finances, including household income.
Using Card Strategically to Build LLC Business Credit
Good business credit can help your business qualify for a wider range of small business loans and financing options. It can open up new business opportunities.
Most business credit cards can help you establish business credit. Pay on time, and you can build a credit history that can help your business build a good business credit score.
In fact, a credit card paid on time can be one of the best ways to build business credit.
Options for Getting Additional Business Credit Cards
As your business continues to grow you may want to get additional business credit cards. Business credit cards can provide additional purchasing power, and can continue to help build business credit. Many small businesses use multiple credit cards successfully.
You do not need to wait a specific amount of time before you apply for a second credit card, provided you qualify.
Maintaining Responsible Usage and Payment
One of the most important things you can do to build and maintain good credit is to make sure payments are made on time. Payment history is the most important factor in calculating credit scores, and it’s extremely important to maintain good business credit.
Business credit bureaus report payments as “days beyond terms.” If your payment is three days late, for example, it will typically be reported as 3 days beyond terms or 3DBT. Pay at least the minimum payment on time each month to keep a positive payment history.
Starting With Lower Credit Limits
Depending on your qualifications when you apply, you may need to start with lower credit limits. That’s not always the case; though, with good qualifications you may be able to get a more generous credit line.
Gradually Increasing Credit Limits
If your business does start with lower credit limits, pay on time and manage your credit well. If you do, the issuer will often raise the credit limit. If not, you can request higher credit limits. It’s usually a good idea to establish on time payments for at least six months before requesting a higher credit limit.
Making On-Time Payments From Business Checking
Just as it’s a good idea to use a business credit card for LLC business purchases, it’s essential to use a business bank account for business income and expenses. Pay your credit card from your business checking account and avoid using personal checking to keep a clear line between your business and personal finances.
Next Steps After Getting an LLC Credit Card
Once you get a credit card for your LLC, the key is to use it strategically in your business:
- Use for business expenses
- Keep balances low
- Pay on time
- Request higher spending limits
- Monitor business credit history
- Consider adding employee cards
Summary of the 4 Paths to Get a Credit Card for a New LLC
Again, there are benefits to using a business credit card that make it worth exploring. If you use credit cards in your business—and most small business owners will—you’ll want to get a credit card for your LLC as soon as possible.
This helps you avoid the risk of commingling business and personal funds and gives you the opportunity to build business credit.
Business credit cards can improve cash flow. Some cards also offer low introductory interest rates and or low-cost balance transfers which can help your business save money if used strategically.
Understand card issuer requirements to help understand which cards are the best fit for your business. Apply for card options you are more likely to qualify for.
Next Steps With Nav
Nav can help your business find the best credit cards and loans from multiple sources, review and monitor your credit with detailed credit reports, and give unique insights into your business financial health.
Improve your business’s financial health profile, unlock better financing options, and get funded — only at Nav.
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