Can I get a business credit card with no personal credit check?
Quick insights
- If your business does not have a credit score, a card issuer may do a personal credit check when you apply for a credit card.
- Many business credit cards require a credit check during the approval process.
- Some credit card issuers may require a personal guarantee that holds the cardmember liable for paying off the balance on the card.
If you’ve applied for a consumer credit card, you’ve likely run into a credit check. Many card issuers run a check of your credit as part of their application and approval process. However, if you’re applying for a business credit card, these credit checks may look different.
A personal credit check may not be necessary. Some card issuers may check your business credit score (if you have one). Others—like fintech credit cards—may not require any credit check.
In this article, we will discuss when a personal credit check may not be necessary when applying for a business credit card and what impact a credit check can have on your credit score.
Types of business credit cards that do not require a personal credit check
There are many types of business credits cards that cater to different types of businesses, including large corporations, small businesses or startups.
Often, the type of card will determine if a personal credit check is necessary. Here’s how different types of credit cards tend to treat credit checks:
- Corporate credit card: Corporate credit cards are designed for use by large companies with multiple employees. Card issuers may require a business credit check during the approval process. A personal credit check is typically not sufficient.
- Business credit card: Traditional business credit cards are typically geared toward small businesses and sole proprietors. If a business does not have a credit score, a personal credit check may be required by the card issuer.
- Fintech credit card: Fintech cards often appeal to startups and new businesses. Many fintech credit cards do not require a check of your personal credit as a part of their application process.
Credit checks are often used by traditional business cards to help determine your credit worthiness and credit limit. Fintech companies may use an analysis of your business revenue, bank account balance or funds raised, rather than a credit check.
How credit checks impact personal credit scores
There are two types of credit checks—soft and hard pulls:
- Soft pull: Soft inquiries may not affect your credit score. When you apply for a line of credit, lenders will usually perform soft inquiries for an overview of the basic details on your credit score, including how often you've applied for credit.
- Hard pull: Hard inquiries do affect your credit score and can be pulled for a variety of reasons, such as a credit check or proof of conditional approval for loans. A hard inquiry is usually only performed when you have completed a full application for a credit card or loan.
Some card issuers may utilize a soft pull to obtain preliminary information about your credit worthiness. However, they then may require a hard pull to officially approve your credit card application.
It is common for traditional business credit cards to require a hard pull of your credit. You could potentially avoid a hard pull of your credit if you apply for a card that does not require one.
Does my business need a credit score or credit history?
Businesses, like individuals, have credit scores. But if your business is new, you may not have a credit history to speak of, meaning a credit issuer cannot yet run a check on your business credit score.
In this instance, the issuer may look to a business owner’s personal finances. During the approval process, you may be asked to provide proof of your personal income and credit history. This would likely result in a hard pull of your personal credit.
Some card issuers may also require a personal guarantee stating the cardmember is liable for paying off the balance on the card. However, there are business credit cards that do not require a personal guarantee.
What's needed for a business credit card application
Depending on your company's size and structure, there are different requirements or documentation needed for the application process. To apply for a business credit card, you may need to provide the following information:
- Business name, address and contact information
- Number of years in business
- Industry
- Number of employees
- Annual revenue
- Tax ID
- Personal information about the business owner such as name and Social Security number (SSN)
Using an EIN to get a business credit card
An Employer Identification Number (EIN) is assigned by the Internal Revenue Service (IRS), to identify a business for tax purposes and distinguish the business entity from an individual taxpayer. In some cases, you may need a Tax ID or an EIN to apply for a card. This is different from an SSN, but an EIN may not always be required.
Some business credit cards can be opened using the business owner's SSN in place of an EIN. This may be more common with small businesses that are organized as sole proprietorships and single member managed LLCs.
In summary
A credit check is common when applying for a business credit card. However, there are business credit cards that do not require a personal credit check. Corporate credit cards and fintech business credit cards typically do not. A card issuer may run a business credit check if your business has an established credit history.
Card issuers who require a credit check may do a hard pull, which can affect your credit score. If the issuer does a soft pull of your credit, your score will generally not be affected.
