You can use an Employer Identification Number (EIN) instead of a Social Security Number (SSN) to apply for a credit card, as long as it's a business credit card or corporate card.
However, it's important to note that these EIN-only business credit cards tend to come with certain credit, revenue, and cash-on-hand requirements that other business credit cards lack.
Fortunately, there are a number of business credit cards more ideally suited to medium and small businesses—although some may require not just your EIN but your SSN to sign up.
In this article, Ramp explains how EIN-only cards work, how to apply for one, and what the best business credit cards are for every type of business scenario.
Corporate credit cards are the only business cards that require just an EIN, but they're typically designed for larger, more established companies bringing in substantial annual revenue. If you're a small business owner, it's unlikely you'll meet those capital requirements.
In that case, you might want to consider a card from a financial technology company that caters to smaller to mid-sized businesses. These providers often offer more accessible options with features like cashback, no annual or foreign transaction fees, and no personal guarantee requirements. Some also avoid personal credit checks and security deposits, making them easier to qualify for. Others also offer specialized perks, such as expense tracking tools for fleet management or seamless integration with existing payment platforms, tailored to the needs of growing businesses.
If you have poor credit or don't meet the requirements for a corporate card, secured cards can be a good alternative. With these cards, you put down a cash deposit that will act as your credit limit. Secured credit cards report to the business credit bureaus, so you can use them to build your credit score.
Although secured credit cards don't come with credit score or capital requirements, you'll have to provide your SSN to qualify. This is necessary for the personal guarantee you agree to with these cards.
Here are a few secured business credit cards:
Bank Of America Business Advantage Unlimited Cash Rewards Secured Mastercard® Credit Card
This secured credit card from Bank of America has no annual fee and requires a minimum $1,000 cash deposit. When you're approved, your cash deposit will act as your line of credit. The card offers 1.5% cash back rewards with no annual cap, making it a good option for funding business expenses while improving your credit score.
The First National Bank Business Edition® Secured Mastercard® Credit Card
The First National Bank Business Edition® Secured Mastercard® Credit Card requires a cash deposit between $2,200 and $110,000, which acts as its credit limit. The card reports to Dun & Bradstreet, so you can build your business credit score with that bureau. It also comes with some expense management features, like receipt capture for recordkeeping. The card has a $39 annual fee.
Wells Fargo Business Secured Mastercard® Credit Card
The Wells Fargo Business Secured Credit Card requires a security deposit between $500 to $25,000, which determines its credit limit. The card offers a choice between cash back or reward points; you can earn 1.5% cash back on every dollar spent or 1 point on every dollar spent, plus 1,000 bonus points when your company spends $1,000 or more in any billing period. There's a $25 annual fee per card.
It's possible to get a credit card with only an Employer Identification Number (EIN), though it isn't easy. If your business doesn't have established credit, you'll need to meet additional requirements to get approved for a card using just your EIN. Those requirements can involve meeting a certain monthly revenue threshold or having a certain amount of capital in the bank.
While sole proprietors can get an EIN, they're typically not eligible for small business credit cards using only their EIN. If you have a large, established business, you can usually get a corporate card without using an individual SSN or an EIN.
Yes, you can get a business credit card without an SSN, but you'll need to provide an EIN or a tax ID. However, new businesses usually won't have the credit history to avoid getting a personal credit check and providing a personal guarantee. If you don't have an SSN (e.g. you recently immigrated), you may be able to use your individual taxpayer identification number (ITIN), or tax ID, in the application process.
Many card issuers prefer an SSN over an EIN—and many may ask you to provide both—because they require business owners to provide a personal guarantee. That's because lending money to startups is extremely risky, and most credit cards don't require collateral. Lenders want to protect themselves from losses by requiring individuals to promise to repay their debts if their business can't.
Business credit card issuers that require a personal guarantee will look at your personal credit when deciding whether to approve your credit card application. In those cases, your personal credit will also factor into the size of the credit limit you receive and the interest rate, if applicable.
Some, but not all, business credit card issuers that require an SSN will report payments on the card to personal credit bureaus.
If you're a small business owner, you might prefer a credit card with an EIN rather than an SSN for several reasons.
It's important to note that your business credit score is inextricably linked to your EIN, in the same way your SSN is tied to your personal credit score. Credit bureaus use it to determine your company's creditworthiness.
EIN-only credit cards are a great option if you want a card with no credit check, but they have their drawbacks. Here are the pros and cons of credit cards with EIN only.
Here's how to apply for a business credit card with only an EIN, in three steps:
1. Get your EIN
Before you can apply for a business credit card using your EIN, you'll need to get an EIN for your business. You typically get an EIN when you register your business with the state, but if you don't have one, you can request an EIN from the IRS using this online form. Or if you already have an EIN number but are unsure where to find it, here's how to perform an EIN lookup.
2. Find EIN-only business credit cards that work for you
Once you have an EIN, you'll need to look for card issuers that will approve you with just an EIN—we've listed a few options below. Usually, your business will need to be registered as a limited-liability corporation (LLC), a partnership, or a corporation. Then, apply for a business credit card as you would any other credit card. If there's a box asking for your SSN, just skip it and fill out the section requesting an EIN instead.
3. Apply for a business card with EIN
You'll also need to include other information about your business, like its name and corporate structure, its contact information, the size of your business, its current and projected revenues, and its date of registration. Once you've filled out the application, the card issuer will review and verify the information and then let you know whether you've been approved. Some card issuers will complete the verification process instantly, while others might take a few days.
There are different types of EIN-only business credit cards you might consider based on your business's needs. Here are the card options to look at:
Corporate business credit cards
When using a corporate business credit card, your business is responsible for any credit card debt, eliminating the need for a personal guarantee. An SNN isn't necessary for corporate credit cards, so you can get a business credit card with just your EIN number.
To qualify for most corporate business credit cards, you'll also need a U.S. business bank account with a certain minimum balance.
Store credit cards
Store credit cards are meant to be used at one specific store. While you'll be more limited in where you can use them, they may make sense if the bulk of your business purchases come from a single vendor. As a bonus, store credit cards don't come with a personal liability requirement. Best Buy's credit card and Amazon's Secured Store Card are examples of this type of card.
While store credit cards often offer rewards that can benefit your business, these are only redeemable at the store where you use the card. You're better off with a more flexible corporate card that lets you set permissions on which stores employees can shop from, with a wider range of rewards.
Corporate gas credit cards
Much like a corporate store card, gas credit cards offer perks like discounts at the pump and other travel rewards. Many companies opt to use corporate gas cards instead of gas reimbursement programs.
As with store cards, corporate gas credit cards have limited use since they only work at gas stations within a specific network. That said, if gas is a significant expense for your company, a corporate credit card for gas might make sense. For a more flexible option, consider a corporate credit card that works anywhere, while offering category controls to limit where employees can spend. You can sign up for some gas cards using only your EIN.
Prepaid business cards
Business card issuers typically require an SSN to determine the creditworthiness of businesses without an established credit history. Since prepaid business cards reduce the risk to lenders (since there's no possibility for losses), they don't require an SSN or a personal credit check.
Prepaid business credit cards are one type of secured business credit cards. While these can be a useful tool to help you build business credit, an unsecured card offers much more flexibility.
This story was produced by Ramp and reviewed and distributed by Stacker.
