Declined for a Small Business Card? There Might Be a Simple Fix!
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Lyn writes about flying nearly free on Southwest on her GotoTravelGal.com blog and has a free guide available for download that walks you step by step through how to earn the coveted Southwest Companion Pass. The pass, which lets 1 person fly almost free with you for up to 2 years, is easiest to earn by signing up for 1 personal and 1 business Southwest credit card.
I’ve asked Lyn to share a top tip that might help you if you’ve been unsuccessful applying for business cards.
Lyn: While business credit cards are super enticing to earn more points and miles for free travel, they often seem out of reach for many people.
What if you’re not a full-time entrepreneur? Can you legitimately be approved for a business card if you only have a side hustle or part-time business? I’m here to tell you it’s possible, even if you’re denied at first.
One Reader’s Success Story
I recently had a GotoTravelGal.com reader email me to say she’d been denied for the Southwest Rapid Rewards® Premier Business Credit Card, a key part of her strategy to earn the Southwest Companion Pass!
She said she was declined because she did not have any other supporting paperwork for her business as a sole proprietor, aside from her social security number. She even called the Chase reconsideration line. There, they read her a list of paperwork she would need to provide in order to be approved for the card.
She had none of it.
In reviewing the letter Chase sent to her, essentially they wanted a recent document (within 3 months) that showed HER name associated with the name of the company. They said this could include:
- Utility bill
- Insurance card
- Government-issued ID
- Internet or cable bill
She wanted this card, so she gathered the information they wanted … as we all should!
Next, she went online and applied for an Employer Identification Number, or EIN, from the US government. Once she supplied this to Chase, she was approved!
So it truly may be as simple as filling out an online form. Who knew?
My Own Experience Was Similar
When I first applied for the same Southwest business card, I, too, was declined. And I have had my own business, which is incorporated, for 10 years!
They wanted that same paperwork that showed my role in the business and the business name all on 1 document. They had me dig up my articles of incorporation, which provided all they needed. It was a pain, but it worked!
How to Get an EIN for Your Business
You can easily go online to apply for your EIN (Employer Identification Number). Here is the online application.
You can apply as a sole proprietor (this would mean you most likely include this income on a Schedule C for your taxes), a corporation, an LLC, and more.
You’ll need to:
- Indicate why you are applying for an EIN (starting your own business)
- Provide your name and social security number
After answering a few simple questions, you should be good to go and can either print out your EIN or wait until your document arrives in the mail. You can then take this to a Chase bank or fax the information to them (this takes several days).
There’s no guarantee this will get you approved. But it could be a big help!
If you are declined for a Southwest business card, take heart! There may be an easy fix.
Call the Chase reconsideration line, and ask why you were denied. And if it’s because you don’t have the proper paperwork, applying for an EIN (Employer Identification Number) for your business could make a huge difference!
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