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Any small business, whether a new start-up or a well-established company, can apply for a business credit card. However, approval isn’t guaranteed. Here’s how to improve your chances of successfully applying for one.

Key takeaways

• Any small business can get a business credit card, providing they meet its requirements

• It’s important to run eligibility checks before applying to avoid leaving marks on your credit report

• Be careful when completing the application process – errors can result in your application being delayed or rejected

Why get a business credit card?

If you work for yourself or run a small business, you may be eligible to apply for a business credit card. Your approval will depend on several factors, including your personal or business credit history and how carefully you complete the application.

A business credit card can be worthwhile if you value the benefits of keeping personal and work spending separate. Many businesses are drawn to the rewards, cashback, and other perks, such as accountancy software and travel insurance.

What information do you need to apply for a business credit card?

Anyone considering a business credit card should take time to collect all the information card providers are likely to need before making an application. 

You’ll need to provide personal details, such as proof that you’re aged 18 or over and a UK resident, as well as information about your business, including financial details, turnover, and trading history.

What to do before you apply for a business credit card

You can increase your chances of being accepted for your chosen card by following these steps:

1. Check your credit ratings

Before you apply for a business credit card, check your credit reports for any errors that may deter card providers. If you spot any mistakes, contact the agency or agencies and ask them to make a correction. 

If you have a negative mark on your credit file, such as a missed credit card payment or a loan default, it may be best to wait until it’s removed. This typically happens automatically six years after the incident was first recorded.

2. Shop around

When looking for a suitable business credit card, pay special attention to the following:

• Interest rates: Compare the annual percentage rate (APR) on different cards for purchases. Note any introductory offers, what the introductory APR is, when it expires, and what the rate reverts to afterwards

• Fees: Bear in mind any charges, such as annual account fees and foreign usage charges 

• Rewards: Look for cards that come with rewards that are relevant to you, such as cashback or air miles

• T&Cs: Check whether you need to be an existing customer. Some banks will insist on this before providing a card

3. Run an eligibility check 

Applying for too many credit cards can harm your credit report, so it's best to start with eligibility checks. These checks help you identify the cards you're most likely to qualify for, allowing you to narrow down your options. Once you've shortlisted the best providers, you can explore further. Eligibility checks only involve a ‘soft check’ on your credit file, which leaves no trace, unlike the ‘hard checks’ that occur when you formally apply.

How do you apply for a business credit card?

Once you’ve identified the best business credit card and gathered all the required information, you can make your application. Here are a few tips for how to boost your chances of success:

• Take your time to carefully read through the application form. If possible, print it out and complete a draft version first. Rushing through the process can lead to mistakes, which could harm your chances of approval or cause unnecessary delays

• If possible, keep a copy of your application, just in case the provider has follow-up questions or is unclear about anything in your submission (take screenshots if necessary)

• Check you’ve sent the application to the right address. If you’re applying via email, request delivery and read receipts. If you apply by post, opt for special delivery where you get a signature on receipt

• Record the application date in your diary. If you apply online, you may discover whether your application has been successful almost immediately, although it can take up to 10 working days in some instances

What should you do if your application is unsuccessful?

If your application is rejected you may still be able to get a business credit card by following these steps:

• Avoid further applications for six months, as rejected applications may damage your credit score

• Try to clear any debts you have and pay off the balance each month on other credit cards

• Consider getting a balance transfer card if you have debts on other credit cards. This may go against the six-month rule, but failing to clear your balance each month is more damaging to your credit score 

• Sign on to the Electoral Roll if you haven’t done so already

• Double check your credit report for errors, and ask your business partners and fellow directors to do the same if applicable

• After around six months, shop around for the best cards and run eligibility checks

• Consider applying for a start-up loan or grant if you need a cash injection 

Read more: How to get a business credit card with a poor credit history