Understanding Financing Terms

3 Benefits Of Getting A Business Credit Card Without Using A Social Security Number

While there are many business credit cards that do require the use of your personal social security number in order to be approved, there are several card options that will allow you to be approved without providing a social security number. There are several benefits that come along with choosing to apply for this type of business credit card. You can learn more about three of these benefits by continuing to read below. 

#1: Prevent Personal Credit Issues From Getting In The Way Of You Being Approved

If your credit history is less than perfect, you may find that your financial issues will prevent you from being approved for a business credit card when supplying your social security number. This is because even though the line of credit being requested is for business purposes, most lenders will still run a personal credit check if a social security number is required to complete the application. A less-than-perfect credit history could also impact what line of credit your business is granted if your application is approved. 

#2: Establish A True Credit Score For Your Business

If you apply for a business credit card using your social security number, this account will typically be reported the same way a personal line of credit is reported. This means that your business will not be establishing a credit history or credit score. This can make it more difficult to obtain other types of business financing in the future. This problem can be easily remedied by getting a business credit card without using a social security number. This forces the creditors to report the account using identifiers for your company rather than for you personally. 

#3: Don't Let Your Business Finances Impact Your Personal Credit Score

Just as issues with your personal credit score could potentially impact the creditworthiness of your business when applying using your social security number, you could find that any financial issues within your business could also impact your personal credit score. This is because business credit cards that are linked to a specific social security number are often reported to credit bureaus using this social security number to identify the account holder. This means that if your business credit card account is not in good standing, you will see a decrease in your personal credit score. This could prevent you from qualifying for any personal lines of credit that you may require.