Using an Employer Identification Number (EIN) for Business Credit
An Employer Identification Number (EIN) helps build business credit separate from personal score. It allows card approval if the owner has poor personal credit. EINs have benefits like easier tax filing, hiring employees, and qualifying for business loans and bank accounts.
Steps to Build Business Credit with EIN
To build business credit, open accounts with companies offering revolving credit lines. Fill out applications using the EIN, charge purchases, then pay balances in full and on time. Companies like Dell, Staples and Lowe’s often work with new businesses.
Applying for Credit with an EIN
If the EIN application is approved, the IRS issues a confirmation letter online, by mail or email. Search paper and digital business files for the confirmation letter documenting the number.
Most lenders require income proof before lending money. Businesses without credit histories may need revenue or capital minimums for EIN-only card approval. With the EIN, choose the best business credit card. Check credit score, gather application information, and decide what to personally guarantee. Applying for a card with an EIN is quick and straightforward.