Business credit card pre-approval: What to know

If you want to find out what business credit cards you may be eligible for but don’t want to risk hurting your personal credit score, pre-approval can be a helpful and enlightening first step. To be pre-approved for a business credit card means the credit card issuer has reviewed your information and determined that you meet the initial eligibility requirements for an offer or a set of offers. Each card issuer has different criteria for pre-approval, so it could be worthwhile to compare cards and use the pre-approval process to see which cards your business could be eligible for.

If you’re in the market for a business credit card, getting pre-approved can help you save valuable time and effort before starting the formal application process. But not all business credit card issuers offer pre-approval. It may benefit you to find out which ones do before you choose a product to apply for.

Read on to learn more about business credit card pre-approval and how it could benefit your organization.

What you’ll learn:

• Getting pre-approved for a business credit card can help you compare different types of credit cards for your company before formally applying.

• You’ll often need to provide some information, like your business’s name and address, to get pre-approved for a business credit card.

• Pre-approval for business credit cards doesn’t impact your personal credit score, as it doesn’t involve a hard personal credit inquiry.

To get pre-approved for a business credit card, first identify the card type that meets your organization’s needs. Maybe you’re looking for a card with no preset spending limit to boost your purchasing power or a card with no annual fee. Maybe your business needs employee cards or you’re interested in cash back or travel rewards. Or maybe you’re interested in choosing from all your available card offers. After selecting a path, you can start the pre-approval process if the card issuer offers it.

In some cases, you’ll be able to get pre-approved for a business credit card directly on the card issuer’s website. However, pre-approvals aren’t as common for business credit cards as they are for personal credit cards, and the process can be more complex, given you’ll need to provide both business and personal information.

To get pre-approved for a business credit card, you’ll generally need to provide:

• Business-identifiable information (business’s name, address, phone number)

• Business details (annual revenue, industry, ownership structure)

• Your personal information

The lender will review details of your business and financial well-being to determine which offers you’re pre-approved for.

So, why should your business get pre-approved for a business card? If you’re unsure whether you’d be eligible for a certain credit card, getting pre-approved can take away some of the guesswork—and it comes with other advantages as well.

The pre-approval process is typically faster than a full application and can help you narrow down your business credit card options prior to applying. You usually only need to submit basic information to find out whether you qualify. In some cases, the credit card issuer may even automatically send pre-approval offers based on your profile, saving you time.

Pre-approval from a credit card issuer also allows you to get a sense of your initial eligibility without putting your personal credit score at risk. That’s because pre-approval only involves a soft personal credit inquiry. If you decide to move forward with a full application, that’s when the card issuer will perform a hard inquiry, which could cause a temporary dip in your credit score.

With business credit card pre-approval, you can get a head start on understanding what you may be eligible for before submitting a formal application. For instance, if you have good business credit, you might have more options than someone just starting to build credit.

If you’re unsure which type of credit card is best for your needs, you can review different cards while comparing pre-approval offers. You can read the terms and conditions and check out the types of rewards available, whether the card has an annual fee and any other details that are important to your company. This way, before making your final decision, you can compare multiple offers, if you’re eligible.

Just like with pre-approval for a consumer credit card, you can take a few steps as a business owner to help increase your chances of getting pre-approved for a business credit card, including:

Your personal credit score reflects your personal creditworthiness, while your business credit score helps determine your company’s financial health and credit risk. And while they’re separate, some scores may be reported to the credit bureaus when you apply for a business credit card. This is especially true if you’re just beginning to build business credit.

That’s why working to improve both your personal and business credit scores—by doing things like making timely payments and keeping your credit utilization low—could factor into your pre-approval chances.

Before you start the pre-approval or application process, make sure your financial records are in good shape. Along with basic information about your company—like its name, contact information, industry, years in business, etc.—you’ll need to provide information about your business income. Some credit card issuers may also need additional documentation, like your employer identification number or tax ID number.

Since pre-approval doesn’t typically result in a hard personal credit inquiry, consider getting pre-approved for several different cards before you apply. Doing so can increase your chances of finding the best card for your business. Look for credit cards that align with your credit history and your organization’s needs. Then, once you’re pre-approved, you can select the best business credit card offer for your company.

Once you’ve been pre-approved for a business credit card, make sure you understand the fine print by reviewing the offer details carefully. Then, you’ll still need to submit your application and wait for the credit card issuer to officially review and approve it. This might take just a few minutes, but in some cases you may have to wait a few days for approval. Your physical card should arrive shortly thereafter.

Here are answers to a few frequently asked questions about the business credit card pre-approval process:

Business credit card pre-approval enables you to see which card offers you’re approved for without harming your personal credit score. You can then compare different options before selecting the right card for your organization and its goals.

If you’re looking for a credit card that offers your company rewards like cash back or bonus miles, compare Capital One business credit cards, learn about Capital One credit card pre-approval and get started today.