What are the available credit cards for EIN-only applications?

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What Credit Cards are Available for EIN-Only Applications?

Entrepreneurs and small business owners often use an Employer Identification Number (EIN) to establish a separate legal entity for tax and financial purposes. However, when it comes toapplying for a credit card, some banks may require a personal guarantee or a social security number (SSN) as a primary account holder, which may limit the options for EIN-only applicants. Nonetheless, several credit cards are available for EIN-only applications, depending on the business's credit history, revenue, and expenses. In this article, we will review some of the available credit cards for EIN-only applications, their features, and their requirements.

Secured Business Credit Cards

Secured credit cards require a security deposit that serves as collateral for the credit line. Some secured credit cards are available for EIN-only applications, such as the Wells Fargo Business Secured Credit Card and the BBVA Secured Visa Business Credit Card. These cards may require a minimum deposit of $500 or more, but they can help establish or improve the business's credit score. Secured credit cards may also offer rewards, such as cashback, points, or miles, which can be used to offset future purchases or travel expenses.

Unsecured Business Credit Cards

Unsecured credit cards do not require a security deposit but may require a personal guarantee or a strong business credit score. However, some unsecured credit cards may be available for EIN-only applications, such as the Capital One Spark Classic for Business and the Brex Corporate Card for Startups. These cards may offer higher credit limits, lower fees, and more rewards than secured credit cards but may also require a higher credit score or a larger revenue. Unsecured credit cards may also offer business-specific benefits, such as expense management tools, employee cards, and fraud protection.

Store Credit Cards

Store credit cards are issued by retailers or merchants and can be used to make purchases at their stores or online. Somestore credit cardsmay be available for EIN-only applications, such as the Home Depot Commercial Revolving Charge Card and the Staples Business More Account. These cards may offer discounts, financing options, or other incentives for frequent or large purchases, but may also have higher interest rates or limited acceptance outside of the store. Store credit cards may be useful for businesses that specialize in certain products or services, such as home improvement or office supplies.

Other Credit Cards

Other credit cards may also be available for EIN-only applications, depending on the issuer's policies and the business's financial profile. For example, some credit unions may offer business credit cards for members who have an EIN and a business account. Some online lenders or fintech companies may also offer credit cards for startups or small businesses that do not have a long credit history or strong financial statements. However, these cards may have higher interest rates, fees, or restrictions than traditional credit cards, and may require careful comparison and evaluation before applying.

Tips for Applying for a Credit Card

When applying for a credit card, whether for personal or business use, it is important to consider several factors, such as the credit score, the credit utilization, the fees, the rewards, and the terms and conditions. Here are some tips for applying for a credit card:

- Check your credit score and credit report before applying, and dispute any errors or discrepancies.

- Keep your credit utilization below 30% of your credit limit, and pay your balance in full or at least the minimum payment on time.

- Compare different credit cards based on their features, fees, and rewards, and choose the one that suits your needs and budget.

- Read the fine print of the credit card agreement, and understand the APR, the grace period, the balance transfer fees, the cash advance fees, the foreign transaction fees, and the penalty fees.

- Use your credit card responsibly, and avoid overspending, cash advances, or balance transfers that incur high fees or interest rates.

Conclusion

EIN-only applicants have several credit card options available, from secured credit cards to store credit cards to unsecured credit cards, depending on their credit history, revenue, and expenses. By understanding the features and requirements of different credit cards and following some best practices for credit management, businesses can use credit cards to finance their operations, build their credit score, and enjoy rewards and benefits that save them money and time.