It takes a lot of capital and funding to start a business. The more funding you have, the faster you will be able to grow. Many business owners make the mistake of using their personal credit or money to fund their business. They might even borrow money from their family and friends. This is a quick way to drain money, and it is unnecessary. There is a better solution. Business owners can get business credit without an SSN.
Business Credit Vs. Personal Credit
For small businesses, separating business credit and personal credit can be tricky. After all, you are your business. It is recommended that you separate your business and personal credit. There are many small business owners are not familiar with the differences between business credit and personal credit. Here are some key differences:
Personal Credit Profile
- Linked to your SSN (social security number)
- Scores range from 350-850
- Credit history is curated through 3 credit bureaus: Equifax, Experian, and Transunion. Everyone has a profile with each one
- Summarized into a single number (this helps creditors see where you stand at a glance.) FICO is the most commonly used scoring method
Business Credit Profile
- Linked to an EIN (Employer Identification Number)
- Scores range from 0-100
- Credit history is curated by 5 major credit bureaus
- Credit scores determine: loan and lease approval, interest rates, credibility of your business
As a business owner, it is not recommended that you use your personal credit to run your business. Doing so could put your business at risk if your business hits financial roadblocks.
Business Credit Scores
As an American citizen, you are probably familiar with an SNN, credit report and credit score. For businesses, scoring is a little different. For businesses, each credit bureau scores business credit their own way. Your business score depends on:
- How you pay your bills
- How much debt you carry
- What type of industry you’re in
Business credit scores involve fewer variables than FICO scores. It is also easier to improve a credit score as a business than it is as an individual. Unfortunately, there are fewer legal protections for business credit than consumer credit. For instance, there are consumer credit laws that allow you to challenge anything on your report or have errors removed. Business credit reports don’t have those same privileges.
Why You Shouldn’t Get Business Credit With An SSN
When you apply for a Business Credit card you do not want to use a SSN for a variety of reasons. There are a few situations where you shouldn’t use an SSN:
- Privacy and Security concerns with sharing an SSN
- You do not want your SSN linked to your business
- You have applied for an SSN but have not received one
- Doing business in the U.S. as a non-citizen and you are not eligible for an SSN
Business Credit Without An SSN
Fortunately, you can navigate around the above situations without having to use an SSN. It is a much better financial move to get business credit without an SSN. Instead, you can do it by using an ITIN (Individual Taxpayer Identification Number) or an EIN (Employer Identification Number).
Using An ITIN
The typical alternative to an SSN is an ITIN. ITINs are tax-processing numbers that the IRS uses for individuals who are required to have a U.S. taxpayer identification number but they are not eligible to have an SSN.
Using An EIN
Typically, you can apply for a business credit card with an EIN. If you have an ITIN, you can use this to apply for an Employer Identification Number (EIN). You are eligible to apply for an EIN online of you:
- Are ultimately responsible for owning and controlling your business
- Your business is primarily located in the U.S. or U.S territories
- You can provide a valid taxpayer ID number such as an SSN, ITIN or EIN number from another business.
What You Can Do With Business Credit
Unlike consumer credit, business credit offers more options for business owners. With business credit, you can:
- Obtain vendor credit immediately, and HIGH limit store credit cards shortly after
- Get access to fleet credit, cash credit cards, and auto vehicle financing
- Get access to credit with no personal credit check or guarantee
- Obtain credit that reports to the business reporting agencies, not on your consumer credit reports
Business Cards That Do Not Require An SSN
Not every credit card company will approve applicants without an SSN. Although, there are some that will approve you. They happen to be some of the largest credit card companies. These are top business credit cards that do not require an SSN.
- Chase Ink Business Cash Card
- American Express Business Gold Card
- Bank of America Platinum Plus Mastercard Business Card
Business Credit Builder Program and Finance Suite
Startup and grow your business without having to use your own personal funds to do so. Our Credit Services Team will help you build credit from your EIN. This is NOT linked to your social security number. The good news is that this credit doesn’t require cash flow, collateral, or your personal credit. The Business Credit Builder Program will help you build credit without an SSN.
Our Finance Suite is an all-in one program where you can set up your business credibly and establish a positive business credit profile. The Finance Suite will also help you cash credit in your business name with business reporting. You will become more “lendable” by building your business credit.
Who We Are – KAB Credit Services
At KAB Credit Services, our mission is to help entrepreneurs obtain the capital and credit they need to fuel their dreams. Whether you are just starting your business or looking for millions in capital to expand, we have solutions that can help you fund your endeavors. KAB Credit Services is We are dedicated to helping you get business credit and financing for your company. Call us to schedule a FREE consultation. Do you have any questions or comments? Send us a message.