An EIN is a unique 9-digit number assigned by the IRS to identify a business. Legitimate businesses can use an EIN when applying for business loans or credit cards. However, using an EIN instead of an SSN for personal credit is illegal.
To use an EIN when applying for financing, contact credit bureaus specializing in business to establish a credit profile. Once created, apply for credit cards or loans using your EIN. Building business credit is similar to establishing personal credit.
Loans and Credit with an EIN
Many lenders require an established business history in addition to an EIN to approve financing. Personal guarantees, business licenses, tax documents, and strong business financials are often required. Using an EIN instead of SSNs can benefit new businesses by separating personal and business finances.
FAQs about EIN
What kind of loans can I get with my EIN number?
Can I use my EIN instead of SSN when applying for a loan?
Can I use my EIN to apply for credit?
Can I use my EIN to get a loan?
Can you use your EIN number instead of SSN?
Other Important Information
- An individual taxpayer identification number (ITIN) is issued by the U.S. government, and can be issued to people who are not eligible for a Social Security number (SSN)—including non-citizens and spouses.
- A personal guarantee is a promise that, should the business fail to repay, the individual will be responsible for the debt.
If you have an employer identification number (EIN) — a nine-digit tax ID number assigned to your business by the IRS — you can use it to apply for a small-business credit card. Many small-business cards require good to excellent personal credit (typically FICO scores of at least 690) for approval.
Final Thoughts
- Utilizing an EIN number when applying for a business loan enhances credibility and professionalism.
- Having an EIN number allows businesses to access larger borrowing amounts compared to relying solely on personal credit history.