How to Get a Company Credit Card

• Step 1

  Avoid using individual company cards. The more cards you have, the more your credit rating is adversely affected. Instead, apply for a national bank card that carries the lowest interest rate you can find and a line of credit appropriate to your needs. If your credit is solid, you will probably receive many pre-approved applications in the mail. All major credit card companies have websites and telephone assistance that will guide you in finding the most appropriate card. Be prepared to answer specific questions about the company's finances.

• Step 2

  Examine your credit history, both personal and business. Look for mistakes. For new businesses, especially small businesses with no credit history, the card issuer may demand a personal guarantee from you. If your personal credit is good but your balance is more than half of your credit limit, reduce the balance to at least the 30 to 40 percent range. Make certain you are current on all your bills.

• Step 3

  Decide how many cards to order, and for what purchases the company will use them. Do employees on the road need cards for fuel, oil or entertainment purposes? Consider limiting the amount of credit on each of the cards. Remember that the company, not the individual, is ultimately responsible for the balance due. Have a plan so that receipts and reimbursements are submitted to the company treasurer promptly.

• Step 4

  Pay down as much bank debt and other credit lines as possible prior to application. Keep a copy of the application as well as the terms and conditions of the card. Commit to a plan in writing that explains how trusted employees will use the card and how non-business charges will be controlled.

• Step 5

  The review process takes about 10 days. If you are refused, find out why by getting your most recent credit report from the credit card company that rejected you; the credit card company must provide that report to you for free. It will detail the recent record of scores and comments about your company and its guarantor. Send corrections for any mistakes you find to the credit bureau by certified mail, and resubmit the application after the corrections appear. If you did not offer a personal guarantee, see if offering one now would make a difference.

• 3
• Card applications from Visa, Mastercard and American Express Recent credit reports from credit rating agencies Business card management plan
• Card applications from Visa, Mastercard and American Express
• Recent credit reports from credit rating agencies
• Business card management plan
• If the card is still refused, consider using a debit card or prepaid credit card, for which monies for the account are paid in advance. This does not help the current cash flow needs of the company, but it does track expenses and build a credit record that may help the company obtain a standard credit card later.
• If the card is still refused, consider using a debit card or prepaid credit card, for which monies for the account are paid in advance. This does not help the current cash flow needs of the company, but it does track expenses and build a credit record that may help the company obtain a standard credit card later.
• Only apply for as much debt as you need, not what you can carry. If you find that you are running behind in payments, take immediate action to improve cash flow. Credit card payment lateness is an important first warning that your business is not working properly.
• Only apply for as much debt as you need, not what you can carry.
• If you find that you are running behind in payments, take immediate action to improve cash flow.
• Credit card payment lateness is an important first warning that your business is not working properly.

References & Resources

• Small Credit Card Advice
• Annual Free Credit Report