An important document known as an EIN card is given to firms by the US Internal Revenue Service (IRS). A nine-digit identifier is used in government systems to monitor businesses and charities. The SSN is often linked with people, but the Business Credit Card with EIN is intended to identify organizations and help distinguish between corporate and individual funds. Some corporate and startup credit card options don’t need an SSN for applications, enabling users to segregate their personal and business funds.
This article discusses several credit card options and the criteria for EIN-only applications.
What exactly is the EIN card?
It is common to abbreviate employer identification numbers as “EIN.” Other names for the same thing include a federal tax identification number and a federal employer identification number. This idea is well known in the US and entails the recipient of a nine-digit number from the Internal Revenue Service. It serves as a Taxpayer identifying Number when used just for identification. These nine-digit identifiers are different from Social Security numbers (SSNs), also given to US citizens and permanent residents.
EINs are utilized by corporations, while SSNs are intended for private persons. The Employer Identification Number is not used as publicly as the Social Security number. Now that SSNs are for people, you may create a sole proprietorship with one, but if you ever want to grow or hire staff, you’ll need an EIN. EIN cards and related factors are thus essential in this situation. A business must provide its federal employment identification number (EIN) to apply for a Business Credit Card with an EIN.
Business Credit Card with an EIN Has Benefits
A major benefit of being approved for a business credit card using an EIN is building credit for the company. Businesses that provide credit cards utilize the EIN to inform commercial credit bureaus of cardholder activity. A strong credit history is necessary to get money for things like working capital and growth while keeping the business solvent as it grows. According to the U.S. Small Business Administration, 46% of small businesses use personal credit cards for business expenses, preventing them from building a corporate credit history.
When you apply for a business credit card with an EIN, you may segregate your personal and work finances. Using a credit card made expressly for business usage simplifies the accounting and tax reporting procedures. When business and personal funds are kept apart, the owner generally gains from more precise information on the firm’s operation and better decision-making.
Obtain a Business Credit Card Using an EIN
We’ve learned that SSNs and EINs are issued by different authorities but perform comparable purposes. Having separate figures lets you separate personal and company finances. This is helpful since business credit card purchases won’t appear on your credit record and vice versa. This is why getting an EIN card is brilliant. Using an EIN may help you avoid personal accountability for business responsibilities as the company becomes accountable.
Small company owners can’t get EIN cards without your Social Security number. Small firms are statistically more likely to fail; therefore, lenders seek to minimize risk. To determine your editor’s reliability, they check your credit record.
Expect a protracted, bureaucratic paperwork battle if you don’t submit your Social Security number. Obtaining a company credit card without your Social Security number is almost difficult.
What actions must be taken to apply for business credit cards with EIN? Your only option is a business credit card. Business credit cards are difficult to get. Your company’s yearly revenue must be millions, and at least 15 workers must have corporate account access. Due to company structure requirements, small businesses and sole proprietors cannot use this card.
Things have been grim, but we want to alter that. Besides corporate credit cards, you may use anything. Even if you may now get a corporate credit card using an EIN instead of an SSN, your options are limited. Business credit cards and corporate store credit cards are available.
If needed, a corporate gas card is provided. Some firms provide corporate credit cards without a personal guarantee. If you find one that meets your criteria, you may apply for a business credit card with EIN alone and keep your personal and corporate cash separate.
EIN is required for credit cards for new businesses
The business Credit Card with EIN isn’t for single proprietors and small company owners. Here are options for firms that need an EIN-specific card:
Bank of America Customized Cash Rewards Business Card
This credit card gives 3%, 2%, or 1% cash back per category. As a welcome gift, use this credit card to spend $3,000 in the first 90 days and get a $300 bill credit. If you have a Bank of America business checking account in the highest Preferred returns for Business category, this card may boost your cash back returns by 75%. The first nine card payments are interest-free and have no annual fee.
Shell’s Small Business Credit Card
If you own a small business, apply for a business credit card with an EIN and get one that looks like this. With this card, you might earn a 5-cent rebate per gallon and save money at certain Jiffy Lube locations. You may use this card without paying a fee or providing your Social Security number. Your credit score must be above average, between 580 and 739, to be approved for this card.
These are the only workable options that sprang to mind for company owners looking for a business card that just needed an EIN. Although you can apply for the Marriott Bonvoy Business® Credit Card, the Ink CashSM Credit Card, and the Bank of America® Business Advantage Travel Rewards World Mastercard® Credit Cards with just an EIN, we didn’t include them on this list because you also need to provide your Social Security number for security reasons.
Ink preferred credit card
If you spend $15,000 within the first three months on purchases, you might get 100,000 extra points. These points may be redeemed for $1,000 in cash or $1,250 in travel with Ultimate Chase Rewards. The 25% boost on points offered through the rewards site and the fact that your points will never expire as long as your account is active contribute to this. The annual percentage yield (APY) on the $95 credit card ranges from 18.24% to 23.2%.
The Platinum Business Credit Card from American Express
You may earn 1,50,000 membership rewards points for every transaction in the first three months after getting this card. On a range of transactions, this card gives bonus points of 5 or 1.5 cents, with certain purchases earning 1 cent in extra points. You might pay an annual percentage rate (APY) ranging from 17.24% to 25.24%. The cost of this card is $695 per year.
The card has a $200 credit towards airline expenditures and no foreign transaction fees. As well as offering discounts to cardholders, Dell Technologies, Indeed, Global Entry, and TSA PreCheck do as well.
Business Credit Cards With EIN Only
There are only so many options except submitting an EIN application for a company credit card. In addition to the four startup-specific cards mentioned above, existing businesses may apply for various business credit cards with only an EIN.
Divvy
Although it is also accessible to bigger businesses, this credit card is keen to work with startups. Additionally, they don’t record your actions to personal credit bureaus; only corporate ones get the information.
Although you may receive 7 cents, 5 cents, 2 cents, or 1 cent on certain purchases, the card’s reward rate lowers if you pay monthly or semimonthly rather than weekly. It is one of the best business credit cards with only an EIN need.
Although the initial APY is zero, you must have been in the company for at least two years before applying for this card. Your company’s annual revenue must exceed $500,000, you must have at least $30,000 in your business bank account, and the cardholder must have a credit score of at least $650.
Airbase Corporate Card
One of the best alternatives is the Airbase Business Credit Card with EIN. This card doesn’t need a credit check or a personal guarantee to be obtained. There are no fees or interest associated with the card. The limit is larger (10–20%), and the cash-back rate is higher (2%).
This credit card is available as both a physical plastic card and a digital form. This card can interface with various accounting software, simplifying your life.
Rho Business card
You’ve come to the right place if you want a free credit card without a strong credit history or guarantee. This card has no annual fee, transaction, international transaction, interest, cost per card, or platform fee. Account payable, cheque, international, domestic wire, ACH, foreign transaction, and interest fees are absent.
Paying down your balance daily earns 1.75% cash back. After 30 and 45 days, rates drop from 1.75%. No refunds after 60 days. As previously, you may pick a plastic or electronic card for convenience.
Conclusion
For tax and legal reasons, a corporation in the United States must have an EIN card (Employer Identification Number) to function lawfully and apart from its workers. Small businesses can find it challenging to apply for credit cards without an SSN, but there are ways for corporate and startup businesses to acquire credit with only their EIN.
These specialty credit card options provide rewards, benefits, and flexibility to your spending patterns. For qualified enterprises, there is often a minimum age, income, and creditworthiness criteria. Ultimately, the EIN card enables businesses to create distinctive financial identities, simplifying navigating the muddy seas of personal and business finances.
Read the Latest Finance blogs here.
