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Whether you just started a new business or want to improve your business finances, you may be wondering, “how do I get a credit card for my business?” While the online application process for a new credit card is straightforward, qualifying for a credit card, particularly when your business is new, can be more challenging.
If you want to know how to get a credit card for a new business or an existing one, here’s a look at how credit card companies approve credit cards for businesses and alternatives like debit cards if you’re struggling to get approved.
New businesses can face credit roadblocks
Most credit card companies prefer to issue cards to businesses that are already up and running. That typically means having a steady revenue stream and a solid credit profile for the business. For brand-new businesses, those things can be hard to come by.
If your business is still getting off the ground, lenders may require you to guarantee the card personally. That means if your business can’t make payments, you’re on the hook. It’s a risk some founders are willing to take, but it’s not the right move for everyone.
The reality is that many startups and side hustles aren’t yet in a position to qualify for traditional business credit. And that’s okay. Other tools can help you manage spending and build financial discipline until your business is ready for credit. A business debit card is a great place to start if you’re not willing to use your personal credit as a backstop.
What banks typically require for a business credit card
Getting a business credit card doesn’t need to be complicated, but it does help to know what lenders are looking for. Just like applying for a personal credit card, banks want to see that you’re creditworthy and can reasonably repay what you borrow.
Here’s what most banks expect when you apply:
- A legal business entity: You don’t necessarily need to be incorporated, but having an official business structure, like an LLC or corporation, can make the process smoother. Sole proprietors can qualify for business credit cards as well, but you’ll likely need to use your own name and Social Security number.
- An Employer Identification Number (EIN): Think of this as a Social Security number for your business. It’s free to get from the IRS and adds legitimacy to your application.
- Revenue details or projected income: Some cards will ask about your business’s annual earnings. If you’re just getting started, some card issuers may consider your personal income instead, but this can vary depending on the credit card issuer.
- A good personal credit score: Even though it’s a business card, your personal credit history still matters, especially if your business doesn’t have a credit profile yet. Most banks will do a personal credit check and may require a personal guarantee, meaning you’re on the hook for the debt if your business can’t pay.
- A business address and contact info: You’ll need a reliable way for the card issuer to reach you and verify your business. That could be your office, your home, or even a virtual business address.
Adding your personal guarantee and the backing of your personal credit history can make it much easier to get a credit card for a new business.
Start with a business debit card
If you’re not quite ready for a credit card, that doesn’t mean you’re out of options. A business debit card can give you many of the same benefits without the need for credit approval or the risk of taking on debt.
Business debit cards don’t allow you to get into debt, which can help you save on interest costs as you build your business. Debit cards make it easier to stay on top of your spending, set boundaries for your budget, and build strong financial habits from the start.
The Square Debit Card1 gives you instant access to your business’s sales the moment a payment comes through. There’s no waiting for bank transfers, no credit check, and no fees. You can use it online, in stores, or even add it to your mobile wallet.
Why this strategy works
Starting with a debit card keeps your finances grounded in reality. You’re only spending what you earn, which builds discipline and helps you avoid unnecessary debt. It’s also easier to track where your money’s going and stay in control.
Once your business grows and your finances are more predictable, you’ll be in a much stronger position to apply for a credit card with confidence. Plus with the Square Debit Card, there are no bank hours — you get 24/7 access to your funds.
When to consider upgrading to a business credit card
A debit card is a great way to stay grounded in your early days. You’re spending only what you earn, keeping a close eye on cash flow, and building good financial habits. However, as your business grows, you may reach a point where you want to expand beyond just having a debit card.
A business credit card may be the next logical step. It can help you smooth out seasonal ups and downs, cover larger purchases, and earn rewards on everyday spending. For many businesses, it becomes a valuable tool for managing expenses and unlocking more flexibility.
So, how do you know when it’s the right time to apply? You’re probably ready if:
- Your business has consistent revenue
- You’ve built up a solid customer base or recurring contracts
- You have a strong enough personal credit score
- You want to invest in growth, like equipment, marketing, or inventory
- You want to earn travel rewards or cash back on business purchases
Using a business credit card responsibly can also help you further strengthen your business credit profile. That can open up better financing options down the road, including lines of credit, business loans, or higher-limit cards.
The key is to wait until you’re financially ready. If you’re still finding your footing, it’s okay to stick with a debit card. Once the numbers make sense and your business is growing, a credit card can be a smart move.
Picking the best business credit card
Once you’re ready to check your eligibility for a business credit card, the next step is choosing one that matches your spending habits and growth goals. There’s no one-size-fits-all solution, so use these questions to guide your choice:
- Do you want cash back or travel perks? If you’re focused on everyday value, a cash-back card is often simplest; if you’re on the road frequently, travel rewards can help you save on flights and hotels.
- Will you carry a balance or pay in full each month? If you plan to carry a balance, look for a low interest rate. If you pay off your balance each month, which is a good financial habit, prioritize generous rewards and perks.
- Do you need employee cards or spending controls? Some cards let you issue additional cards and set individual limits. For example, the Square Credit Card lets you manage team spending and add or remove cards from the familiar Square Dashboard.
- Are fees a deal-breaker? Square Credit Card has zero annual, late, or hidden fees, so you keep more of your rewards instead of paying the bank.
- How important is integration? With the Square Credit Card, your line of credit ties together with your Square checking and savings accounts, as well as your POS and other Square tools, so you can seamlessly manage your entire business.
The best business credit card is one that aligns with your current operations, supports your future goals, and integrates seamlessly with your Square banking and payments tools.
The Square Credit Card could be the perfect fit
If you’re already using Square, you may be automatically pre-approved for a Square Credit Card2 based on your past sales. Applying has no impact on your credit score, and there are no annual fees, hidden fees, or penalty APRs. You can even earn rewards on every purchase to help smooth out your cash flow and keep more of what you earn.
Best of all, your credit line works alongside Square Checking and Savings in the same Square Dashboard, allowing you to manage both revenue and expenses in one place. Learn more about the Square Credit Card today to find out more about how it can help you level up your business finances.
Square Debit Card is issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard.
Instant availability of Square payments. Funds generated through Square’s payment processing services are generally available in the Square Checking account balance immediately after a payment is processed. Fund availability times may vary due to technical issues.
ACH transfer fund availability: Instant availability does not apply to funds added to the Square Checking account via ACH transfer. ACH credit transfers to your account may take 1–2 business days.
2. Square, the Square logo, Square Capital, and others are trademarks of Block, Inc. American Express is a registered trademark of American Express. Other trademarks and brands are the property of their respective owners.
Square Capital, LLC is a wholly owned subsidiary of Block, Inc., d/b/a Square Capital of California, LLC in FL, GA, MT, and NY. Block, Inc. and Square Capital, LLC are not banks. Square Credit Cards are issued by Celtic Bank pursuant to a license from American Express, and may be used wherever American Express is accepted. If approved, APR may vary based on creditworthiness and other factors. Subject to credit approval.
