Can I Use My Ein to Apply for Credit

Business credit and personal credit oftentimes seem similar 2 entirely different worlds. There are different credit bureaus, credit reports, and credit scores; the cards piece of work differently and characteristic unlike requirements; and the methods used to build each type of credit can differ significantly.

In spite of this, your personal credit will virtually certainly even so play a role in business lending decisions. That'southward not always ideal, so some businesspeople seek ways to apply for concern credit cards while keeping their personal credit entirely out of the picture show.

One of the more normally proposed solutions is to simply apply for business credit cards using only your Employer Identification Number (EIN), rather than your Social Security number (SSN). That should aid go along the focus on your business, correct?

Really, that's not usually truthful.

Information technology'south piece of cake to find credit cards yous can apply for with your EIN. In fact, many major business credit card applications simply ask for a "tax identification number" (an EIN is simply that) before they e'er request your SSN.

Simply the harsh reality is that at that place are very few cases where business credit carte issuers won't asking your SSN. Which means that you'll seldom become a business concern credit menu without your personal credit coming into play (merely it is possible to become certain business cards without personal guarantees).

We'll talk virtually why later on. But first, we'll mention a few cards that you can at least apply for with an EIN. Merely call back that doing so won't help most business owners avert a personal credit check or personal guarantee, and yous'll probable still take to provide your SSN earlier you're approved (the Brex, Stripe, and ScaleFactor cards are exceptions).

What Credit Cards Can You Apply for With an EIN?

You don't have to expect far to notice a business credit carte du jour you lot can use for with an EIN. Browse business organisation credit cards from a variety of major issuers, and nearly volition exist accompanied by an application that looks something like the one below (it's for the Ink Business concern Preferred® Credit Carte du jour (Review)).

The "Tax identification number" department is where you'd put your EIN. As you lot tin can see, you have to employ your SSN from the beginning if you lot're a sole proprietor.

In add-on to Chase, most other big-proper name issuers, including American Express, Banking company of America, and Capital One, have applications that work the aforementioned way.

The key event is that the ability to apply with your EIN is past no means a guarantee that you won't take to submit to a personal credit research, or that you won't have to fork over your SSN likewise.

That's because nearly every business organization credit menu requires a personal guarantee, which ways you're legally liable for its balance. And since that essentially makes yous responsible just like whatsoever personal credit menu, information technology's no surprise that the issuer will want to know how you've handled past debts.

If yous'd like to give information technology a shot regardless, consider some of our favorite business cards, all of which offering employee cards and at least a few other basic business card benefits.

Key Features

• Costless employee cards
• Shopping protections: Buy Security, Extended Warranty Protection, Price Protection
• Travel protections: Rental Insurance Coverage, Roadside Acceleration, Lost Luggage Reimbursement, Travel Accident Insurance
• No strange transaction fee
• Annual fee: $150
  

The information related to Ink Concern Greenbacks® Credit Card has been collected by Credit Card Insider and has not been reviewed or provided by the issuer or provider of this product.

Key Features

• Annual fee:$0
• Introductory bonus: $750 greenbacks bonus for spending $7,500 in the first 3 months later on account opening
• Rewards: v% cash back on Lyft rides; 5% cash back on up to $25,000 spent per yr at office supply stores and on internet, cable and phone services; 2% cash back on up to $25,000 spent per twelvemonth at gas stations and restaurants; one% greenbacks back on all other purchases
• Requires a personal credit check

The information related to Ink Business organisation Preferred® Credit Carte has been collected by Credit Carte Insider and has not been reviewed or provided by the issuer or provider of this product.

Cardinal Features

• Almanac fee: 95
• Introductory bonus: 100,000 bonus points for spending $15,000 in the first three months later on business relationship opening
• Rewards:5X points per dollar on Lyft rides; 3X Ultimate Rewards points per dollar on upwardly to $150,000 spent per year on travel, shipping, online advertising, and telecom services; 1X indicate on all other purchases
• Requires a personal credit bank check

The information related to American Express® Business concern Gold Card has been collected by Credit Card Insider and has not been reviewed or provided past the issuer or provider of this product.

Cardinal Features

• 25% airline bonus: Go 25% of your points back when booking eligible airfare through American Limited Travel using Membership Rewards Pay with Points.
• The Hotel Drove: A $100 hotel credit and room upgrades when available for every eligible two-night stay
• Point transfer: To a choice of airline and hotel partners
• Amex Offers: Access to extra point offers at a broad variety of merchants
• Shopping and travel protections: Baggage Insurance Plan, Trip Delay Insurance, Automobile Rental Loss and Damage Insurance, Global Assist Hotline, Extended Warranty, Purchase Protection
• No foreign transaction fee
  
• Annual fee: $295 Rates & Fees

Enrollment required for select benefits; terms and limitations apply.

American Express® Business Gold Card (Rates & Fees)

The information related to The Concern Platinum Bill of fare® from American Express has been collected by Credit Card Insider and has not been reviewed or provided by the issuer or provider of this product.

Cardinal Features

• Global Lounge Collection:Gratuitous access to Priority Pass, Centurion, American Limited International, Delta Sky Club, Escape, Airspace, Lufthansa, and Plaza Premium Lounges
• Up to $200 in airline fee statement credits annually: Good for incidental costs similar checked bags and inflight food, non tickets, at your selected airline
• Global Entry or TSA PreCheck application fee credit: A statement credit for the awarding fee of either Global Entry ($100 once every four years) or TSA PreCheck ($85 once every iv-and-a-half years)
• Complimentary elite hotel statuses: Hilton Honors Gold condition and Marriott Bonvoy Gold Elite status
• $400 Dell argument credit: Enroll to get up to $400 in annual statement credits for U.S. purchases with Dell: $200 from January through June, and $200 from July through Dec.
• $360 in annual statement credits for Indeed: Up to $xc in statement credits per quarter for all Indeed hiring and recruiting products and services
• Up to $150 in almanac statement credits for Adobe: Annual credits for select Adobe products, including Adobe Creative Cloud and Acrobat Pro DC
• Upwardly to $120 in annual argument credits for wireless services: Up to $10 per calendar month, expert for purchases of monthly wireless services made straight from U.S. wireless telephone providers
• The Hotel Collection: A $100 hotel credit and room upgrades when available for every eligible two-night stay
• Fine Hotels & Resorts Program: Daily breakfast for two, room upgrades when available, amenities valued at $100, and more at eligible properties
• Point transfer: To a selection of airline and hotel partners
• No foreign transaction fee
• Almanac fee: $695

Enrollment required for select benefits; terms and limitations apply.

The Business concern Platinum Card® from American Express (Rates & Fees)

The data related to Brex Daily Bill of fare has been collected by Credit Card Insider and has non been reviewed or provided by the issuer or provider of this production.

Fundamental Features

• Annual fee: $0
• Rewards: Choose Tech Rewards, Life Science Rewards, or Remote Workforce Rewards
• Perks:Diverse credits and discounts for Amazon Spider web Services (AWS), Google Ads, WeWork, Salesforce, Twilio, HubSpot, ZenDesk, and more
• Not available to sole proprietors, unregistered businesses, and other non-individual liability companies
• Does not require a personal credit check

Insider tip

Unlike the other cards to a higher place, Brex doesn't require a personal guarantee for its cards (there's i other carte offer: Brex 30 Carte du jour (Review)). That means you lot can utilize using simply an EIN.

Simply your business organization will have to meet some requirements earlier yous're approved for a Brex card. The Brex Daily must exist paired with a Brex Cash account, while the Brex 30 requires $50K in a depository financial institution business relationship for venture-backed companies, or $100,000 if y'all're not venture-backed.

Key Features

• Available by invite simply
• Almanac fee:$0
• Rewards:two% greenbacks back in your meridian two spending categories each month, out of several options; 1% cash back on all other purchases
• Introductory offer: $50,000 in free payment processing later on your beginning $5,000 in spend
• Perks:Three months of a basic Shopify Subscription for gratuitous, $436 in Zendesk credits per calendar month for the showtime twelvemonth, forty% off HubSpot for the kickoff year, fifty% off Expensify for half-dozen months, $5,000 in Amazon Web Services credits (encounter more benefits hither)
• Requirements: No clear-cut requirements; blessing is dependent on your business'southward payment volume, history with Stripe, and bank account history
• Does not require a personal credit check

Insider tip

The Stripe menu is like to the Brex cards. There are no personal guarantees or credit checks required, but you have to meet Stripe's standards when it comes to payment volume, your history with Stripe, and your depository financial institution business relationship history.

Central Features

• Annual fee:$0
• Rewards:i% cash back on all purchases
• Perks: Virtual cards with customizable expiration dates and spending limits, mobile expense upload and verification
• Requirements: Applicants must exist ScaleFactor customers who have connected business organisation bank accounts and accounting files to ScaleFactor
• Does non require a personal credit check

Insider tip

Similar to the Brex and Stripe cards, the ScaleFactor Visa has no impact on your personal credit. However, you must be a ScaleFactor customer in club to apply.

Fundamental Features

• Annual fee: $0
• Rewards: Upward to 7X points per dollar at restaurants, upwards to 5X points per dollar at hotels, up to 2X points per dollar on software subscriptions, up to 1.5X points per dollar on all other purchases
• Perks: Works with the Divvy budget and expense management software; Tools to manage employee spending; Unlimited virtual cards; Thousands of dollars in special offers and discounts
• Requirements: You tin be approved based on your business credit lone; if your business credit isn't sufficient, Divvy tin endeavour approving you based on your personal credit, which would include a personal guarantee.
• Does not crave a personal credit cheque

What Is an EIN, and How Do You Get I?

Even so not certain how an EIN works? If you're delving into the business organisation earth, information technology's something you should learn about ASAP.

Employer Identification Numbers (EINs) are nine-digit tax ID numbers issued past the federal regime (through the Internal Revenue Service) to employers and other individuals who meet certain criteria. According to the IRS, EINs are "used to identify the tax accounts of employers and certain others who have no employees," merely they also beget business organization owners sure privileges and abilities that tin can contribute to a business' long-term success.

An EIN allows you to:

• File business taxes
• Open business organization bank accounts (EINs are often required, merely not always)
• Streamline the business loan application process
• Establish a business credit file
• Employ for and receive business permits
• Keep your SSN individual during business dealings

Applying for an EIN is free, and anyone whose "primary business, office or agency, or legal residence" is located in the U.S. or its territories can do it. All you need is a valid Taxpayer Identification Number; options include your SSN, or a by EIN. Y'all'll get your EIN immediately upon successful activation.

Applying for a Business Credit Bill of fare With an EIN

Applying for a business credit card will ofttimes require an EIN, though you'll generally have to provide your SSN, too. The process is fairly straightforward, and it'south non terribly different than applying for a consumer credit menu.

Why Would You lot Employ for a Business Card With an EIN?

There are few reasons why applying for a business menu using only an EIN would exist necessary, only ordinarily cited motivations include:

• Keeping your SSN individual
• Avoiding a personal guarantee in favor of visitor liability
• Avoiding a difficult credit research on your personal credit

Unfortunately, using your EIN on a business credit carte du jour application will rarely reach these goals.

Fifty-fifty if your business has a robust business credit history, there's a very high chance that the issuer volition still request your SSN and check your personal credit.In fact, for almost business concern cards the issuer probably won't check your business concern credit at all.

It's equally likely that you'll have to provide a personal guarantee, because they serve as a valuable line of defense force for credit card companies. A few notable exceptions there are the Brex and Stripe cards, mentioned above.

Insider tip

We reached out to Amex and Capital One's concern support teams, and they both confirmed that all business credit card applicants must submit to a personal credit inquiry and provide a personal guarantee. At that place's no way to avoid it, no matter how rich your concern credit history. We can't guarantee that's the case with other issuers, but with few exceptions, information technology'south probably safety to presume information technology is until you check.

How Do Y'all Apply for a Business Card With an EIN?

When you apply for a business credit card, you're required to provide much of the same bones personal data y'all would for a consumer menu. The fundamental stardom is that you'll besides take to provide sure information related to your business. This by and large includes your business concern proper name, the function of your business, its contact information, and revenue information, among other things.

You'll also have to provide a Taxation Identification Number, and that's where your EIN comes into play.

EINs and SSNs are both classified every bit Taxation Identification Numbers, and while the bulk of business organization credit menu applications will probably require you to provide both, certain cards (similar the aforementioned Brex carte du jour) permit you to apply with just your EIN.

Sole proprietorships will often have to provide an SSN upwards front, every bit we mentioned before.

In some cases, you may be able to employ using dissimilar information if you call the issuer's application line to speak with a rep. So if you don't encounter the options you want it's worth giving them a call.

Can You Utilise for a Business Credit Card Without a Hard Personal Credit Inquiry?

Personal credit inquiries can throw a wrench into the business card application procedure.

Poor personal credit could subtract your likelihood for approval despite your business being perfectly capable of repaying its debts.

And even if that's not a concern, hard inquiries tin can have a negative impact on your personal credit scores, though it'south more often than not temporary and small-scale.

There aren't many cards that don't require personal credit checks and guarantees, and they typically require that you correspond a large and profitable corporation.

The good news? Thereare ways to get business credit cards even with poor personal credit (though an inquiry may notwithstanding have place).

Here are your options:

• Use a secured business concern credit card: Secured business credit cards work basically the aforementioned mode as secured personal cards. You provide a refundable deposit, and that ordinarily sets the credit limit. Since there'due south little risk on the lender's role, secured business cards can be adequately like shooting fish in a barrel to go, even with poor personal credit.
• Build business credit with trade lines: Credit cards are one expert way to build business credit, merely merchandise lines are also vital. If you build a solid relationship with a vendor, you may be able to constitute a line of credit and request that your positive payment activity be reported to business credit bureaus (if it wouldn't be already). Then, once you've built a few years of positive business credit using this blazon of credit line, information technology might be easier to authorize for business credit cards without dealing with a personal credit check (but that's not a guarantee).
• Employ your banking relationship as leverage: Banks beloved loyal customers, especially when they're businesses. So if you've forged a long and positive human relationship with a bank or credit union, particularly if it'southward on a local level, you lot might exist able to go a decent business credit card even with poor personal credit scores. Emphasis on "might."

Why Use Business Cards?

If yous're still new to the world of business concern credit, you may have a basic idea of why business credit cards are so helpful. But withal, all small business owners should sympathise exactly why they're and so important in today'southward business landscape.

• Business organization cards brand information technology easier to divide business organisation and personal finances: Charging all of your company purchases to a business organisation credit card can make it considerably easier to rails your expenses.
• Business cards make employee spending simpler: Providing central employees with credit cards connected to your main business concern credit card account can stimulate productivity while helping your business concern earn more rewards. Employee cards are ofttimes offered for free or for a relatively pocket-sized fee.
• You can earn rewards on business organization-specific bonus categories: Business credit card rewards programs frequently offering loftier advantage rates in categories you won't discover with personal cards, such as office supply stores, telecom services, and fifty-fifty online advertising purchases. These rewards may have the form of greenbacks back, rewards points, or miles.
• Credit cards can build business credit: While the business card awarding process may involve your personal credit, most bill of fare issuers study positive concern credit card activeness to business concern bureaus. Tackling business expenses with a credit card and paying off the statement balance in full by the due engagement is a good way to mankind out your business credit history. Solid business credit scores, in plough, can lead to easier access to small business loans in higher amounts, lower involvement rates on loans and credit cards, and other valuable benefits.

Insider tip

Detect and Capital One report positive business organization credit carte action to both business organization and personal credit bureaus. Most other major issuers, like Chase, American Express, and Bank of America, report business concern card activity to personal bureaus but if your debts are delinquent.

Choose Your Carte Carefully

Recall you're ready for a new business organisation card? Whether or not you're using your EIN in the procedure, you lot'll want to brand certain the card complements your business organisation spending.

The best business credit cards will provide rewards categories that make sense for your spending habits, and plenty overall value (past way of both rewards and benefits) to justify the almanac fee some cards crave.

For added value, continue an middle out for business organisation cards with big signup bonuses, which often provide more bonus points than their personal counterparts, as well as 0% intro April offers for balance transfers, purchases, or both.

Expecting to do business around the globe or brand purchases in strange currency? You'll too want to look for strong travel rewards cards with no foreign transaction fees.

Attention freelancers! Did you know that you likely qualify for business credit cards? Cheque out our picks for the all-time freelance credit cards, which include both business organisation and personal cards that you lot might find useful.

For rates and fees of The Business organisation Platinum Card® from American Limited, delight click here.

For rates and fees of the American Express® Business Gilded Menu, delight click here.

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Source: https://www.creditcardinsider.com/blog/can-you-apply-for-a-small-business-card-with-only-your-ein/

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