Business credit cards fuel startup growth by providing capital access, building business credit, and simplifying expense management without depleting your cash reserves. The right card becomes your financial ally, offering spending flexibility when revenue remains unpredictable.
Ramp explains how startups can benefit from specialized cards that match their unique financial profiles.
Mixing personal and business finances creates tax nightmares, accounting confusion, and legal vulnerability for your startup. A business credit card solves this fundamental problem by creating a clear financial boundary that protects both you and your company. This separation isn't just good practice—it's essential for sustainable growth.
Dedicated business cards give your startup significant advantages over relying on bank accounts or personal cards:
-
Build business credit independently: Your startup establishes its own credit profile separate from your personal finances. Each on-time payment strengthens your business credit score, opening doors to better financing options and supplier terms as you grow.
-
Streamline expense tracking: Stop sifting through personal and business purchases on the same statement. A dedicated business card centralizes all company spending, creating clear financial visibility and making expense categorization automatic.
-
Manage cash flow strategically: Cover essential expenses during revenue gaps without depleting your cash reserves. Pay for inventory, software subscriptions, or marketing campaigns when timing matters, then settle the balance when customer payments arrive.
-
Keep founders protected: Business cards with no personal guarantee requirements protect your personal assets and credit score if your startup faces financial difficulties. This separation creates appropriate boundaries between your business and personal finances.
-
Access higher spending limits: Startup-focused business cards typically offer higher limits than personal cards, giving you the purchasing power to seize growth opportunities without hitting frustrating caps.
The ideal business card varies from one startup to another. A SaaS company with high digital marketing spend needs different features than a consulting firm with frequent travel expenses. Your funding situation, growth stage, and spending patterns should drive your selection process.
Your primary financial goals should guide card selection. Startups focused on extending their runway need cards with low fees and interest rates. Companies prioritizing growth benefit from cards with high limits and flexible terms. Businesses emphasizing profitability require cards that maximize rewards on existing spend.
Start by evaluating these key factors to find a card that truly supports your business model rather than forcing you to adapt to its limitations:
Each business credit card comes with its own eligibility requirements. To qualify for most offers, you typically need:
-
Good credit: The most attractive small business credit cards typically require a personal guarantee from the business owner, backed by a credit score of 700 or higher. However, if you have an adequate business credit score, you may be able to bypass the personal guarantee and credit check.
-
Proof of profitability: It may be difficult to qualify for a business credit card if your company isn’t profitable yet or if your profit margin is slim.
-
Agreement among ownership: If your startup is a partnership, lenders will typically require all members of the partnership who own more than 25% of the business to agree to open the account. As such, anyone who owns more than 25% of your business will likely need to be listed on the application, including their names, addresses, birthdays, and Social Security numbers.
Note that some business credit cards can use your startup performance metrics to underwrite your business instead of looking at credit history or a personal guarantee.
Credit card rewards are commonplace among credit card issuers today. Rather than thinking of rewards and perks as extras, it’s better to consider them tools to help you grow your company.
Most cards only offer rewards or bonus points on eligible purchases in certain spending categories like office supply stores, travel expenses, or dining. How you can redeem your membership rewards also varies by card, so you’ll want to consider your options: Do you want elevated travel rewards or more flexible ways to redeem your points?
To avoid the complexity of trying to spend within the right bonus categories, you might consider looking for a card that offers universal cashback on all purchases. That way, you don’t have to tailor where you spend your money, and you’ll know the value of the rewards every time you make a purchase.
If you don’t anticipate paying off your balance in full monthly, prioritize cards with low interest rates. Some offer 0% introductory APR periods for balance transfers and initial purchases.
However, interest often isn’t the only fee you’ll pay as a cardholder. Some other fees to watch for include:
Understand all potential fees before applying. Alternatively, consider corporate purchase cards which function as charge cards without interest charges.
Each card operates under different terms. Some cards automatically apply default interest rates after a single late payment, while others only penalize after multiple missed payments.
Remember that as the business owner, you may face personal liability if your business cannot make payments, potentially affecting your credit score and financial health.
Effective spend management determines whether startups grow or fail. The best cards come with spend management software built in. Some features to look for include:
-
Employee cards: Look for cards that offer unlimited physical and virtual cards, allowing your team to make purchases while minimizing the need for reimbursement
-
Real-time reporting: Automated expense tracking and reporting features let you see where you’re spending your money. The best spend management software will identify savings insights to help you optimize your business spending, like flagging duplicate software subscriptions or redundant vendor charges.
-
Receipt matching: Automated receipt matching can help automate your expense reporting workflow, freeing up hours of work
LLCs, sole proprietorships, and startups can qualify for business credit cards even without established business credit. You can apply using your personal credit score or by providing a personal guarantee.
With poor or no credit history, secured cards offer a pathway to build business credit without requiring existing credit history. Once you establish credit with a secured card, you often become eligible for traditional business cards.
Corporate cards provide another alternative for new businesses. Some offer sales-based underwriting based on monthly revenue, allowing qualification based on cash flow rather than credit history.
Credit cards serve three essential functions for startups: They provide access to capital, help manage expenses, and build business credit. The best options excel in all three areas while adding specialized features like accounting integrations and customizable spend controls.
Startups can access business credit cards regardless of age or revenue size by selecting the right card type and preparing a strong application.
1. Choose the right type of business card. Most traditional banks issue these cards and evaluate your personal credit score (typically requiring 670+), income, and financial history when making approval decisions. Consider these cards when:
-
Your personal credit score exceeds 670
-
You want to earn travel rewards or cash back on business purchases
-
You're comfortable being personally responsible for business debt
-
Your business expenses align with category-specific bonus rewards (like 3x points on travel, dining, or office supplies)
-
You value sign-up bonuses that can range from $500-$1,000 in value
Corporate cards and fintech alternatives often skip personal credit checks and instead evaluate your business metrics. These cards typically assess your bank account balance (usually requiring $25,000+ in reserves), monthly revenue patterns (minimum $10,000/month for most options), investor funding status and cash reserves. Choose these cards when:
-
You maintain a business bank balance exceeding $25,000
-
Your startup processes $10,000+ monthly through business accounts
-
You want to avoid personal liability for business debt
-
You prioritize spend management features and software integrations over rewards
-
You need higher credit limits than your personal credit history would support
2. Gather your application information. The documentation you'll need varies depending on your chosen card type.
For traditional bank business cards that check personal credit, prepare your full legal name, Social Security Number, current physical home address (P.O. boxes aren't accepted), and documented personal annual income. You'll also need your legal business name exactly as registered, business address, company phone number, business structure documentation (LLC, corporation, partnership), and the date your business was established. These cards typically require your personal credit score to be 670+ and may request 1-2 years of business tax returns.
For no-credit-check business cards, the requirements shift toward business performance metrics. You'll typically need to provide your business bank account details for direct connection (account numbers, online credentials, bank name), verification of monthly revenue and cash flow, and funding documentation if applicable. Most of these providers require minimal personal information beyond basic identity verification and focus instead on your business bank balance (typically $25,000+) or monthly transaction volume.
All card types typically request estimated monthly card spending to help set your initial credit limit. Traditional banks often start with conservative limits ($1,000-$5,000) based on personal credit history, while fintech providers frequently offer higher initial limits based on your verified cash reserves.
You can apply using only your SSN as a sole proprietor with either card type. However, having an EIN creates clear separation between personal and business finances, simplifies tax reporting, and helps establish your business as an independent entity with creditors.
Can you get a business credit card with just an EIN?
Yes, you can get a business credit card using just your Employer Identification Number (EIN). However, the types of business credit cards that allow you to apply this way tend to have certain credit score, revenue, and cash flow requirements. To learn more about this topic, check out this guide on how to get a business credit card with just your EIN.
3. Submit your application. These strategies improve your approval odds:
-
Apply for cards that match your qualification profile to avoid unnecessary credit inquiries
-
Include all revenue streams, including consulting or freelance work related to your business
-
Provide accurate contact information for verification purposes
-
Be prepared to explain any recent credit inquiries or negative items in your credit history
Several factors influence how long you may have to wait for approval. In some cases, you’ll receive an instant decision within a matter of seconds. If the lender needs more information or further review, the process could take anywhere from a couple days to a few weeks.
This story was produced by Ramp and reviewed and distributed by Stacker.
