For global entrepreneurs and international business owners, the U.S. presents countless opportunities. Whether you’re launching a new business, expanding into the American market, or simply trying to streamline your operations, having access to a U.S. business credit card can be a game changer. These cards offer benefits such as rewards, enhanced credit options, and the ability to build your business’s credit history in the U.S. But despite these advantages, many non-U.S. residents struggle to obtain U.S. business credit cards.
In this article, we’ll explore the reasons why it can be difficult to secure a U.S. business credit card, the potential impact on your business, and practical solutions to overcome these challenges.
Lack of U.S. Credit History
One of the most common reasons international entrepreneurs face difficulties obtaining a U.S. business credit card is the lack of an established U.S. credit history. Credit card issuers in the U.S. rely heavily on credit scores, which are based on your past borrowing and repayment behavior. For non-U.S. residents or those new to the U.S. market, there may be little to no credit data available, making it almost impossible to qualify for traditional business credit cards.
U.S. credit reporting agencies—such as Experian, Equifax, and TransUnion—track consumer credit activity within the country. Without any prior interactions with these agencies, applicants can seem like an unknown risk to lenders, which often results in rejection.
High Barriers to Entry for International Business Owners
Many credit card providers in the U.S. impose high eligibility requirements for business credit cards, especially when it comes to international applicants. These may include:
A valid U.S. address
A Social Security Number (SSN) or Employer Identification Number (EIN)
A U.S.-based bank account
For non-U.S. residents, fulfilling these criteria can be challenging. Securing a U.S. EIN requires setting up a legal business entity within the U.S., but this process itself can be confusing, time-consuming, and costly. Additionally, many international business owners are unaware that they may need to file paperwork with the IRS to qualify for an EIN, or they may face difficulties if their home country has limited tax treaties with the U.S.
Limited Options for Foreign Nationals
While there are U.S. credit cards that cater to non-residents, these options are limited and often come with specific restrictions. For instance, many business credit cards issued to foreign nationals come with higher fees, lower credit limits, or additional requirements such as:
Proof of U.S. business operations
Personal guarantees or co-signers
Because of these constraints, international business owners often find that the credit products available to them are not as advantageous as those offered to U.S.-based business owners, limiting their purchasing power and growth potential.
Lack of U.S. Collateral or Personal Guarantee
U.S. credit card issuers typically ask for collateral or a personal guarantee to reduce their risk, especially when dealing with foreign applicants. In some cases, international entrepreneurs might not have access to the necessary U.S.-based assets, which further complicates their eligibility.
Personal guarantees can be particularly problematic for foreign nationals because they’re required to assume personal liability for the debt incurred through the credit card, regardless of whether they reside in the U.S. This practice is often seen as a riskier proposition for international applicants who are unfamiliar with the U.S. legal landscape or don’t have significant assets in the country.
U.S. Financial Institutions’ Reluctance to Extend Credit to Non-Residents
Many U.S. banks and financial institutions simply don’t have the infrastructure in place to process applications from international business owners. While large institutions like American Express or Citibank may have global operations, smaller banks may only offer credit cards to individuals with a U.S. Social Security Number and a U.S. address.
Even when an international business owner is able to submit an application, the bank might still hesitate to approve the credit card due to the lack of an established business relationship with the institution. This is compounded by the challenge of building a credit history in the U.S. from abroad, which can lead to missed opportunities and delays in obtaining necessary credit.
Stringent Credit Requirements for Businesses in the U.S.
In addition to personal credit scores, business credit cards often require specific financial criteria to be met. Lenders typically look at the financial stability of the business, including annual revenue, profitability, and existing debt obligations. For international business owners, meeting these stringent criteria can be difficult, especially if their business has only recently started operations in the U.S. or lacks a solid financial history within the country.
Moreover, if a foreign national is attempting to apply for a U.S. business credit card without prior experience in the American market, they may face the perception that their business is too risky to extend credit to, especially if their revenue is not tied to U.S.-based customers or transactions.
The Importance of a U.S. Bank Account for Credit Applications
A U.S. business bank account is essential for managing finances in the U.S. and establishing a relationship with U.S. financial institutions. Many credit card issuers will not consider an application without evidence of a U.S. business bank account, as this demonstrates that the business is operational and compliant with U.S. tax laws.
However, setting up a U.S. business bank account from abroad can be challenging, especially without a physical U.S. address or personal presence in the country. Without a U.S. bank account, international entrepreneurs may struggle to establish the necessary credibility with U.S. banks, resulting in rejection of credit card applications.
How to Overcome These Challenges and Secure a U.S. Business Credit Card
While obtaining a U.S. business credit card as an international entrepreneur can be challenging, it is not impossible. Here are some strategies to improve your chances:
Register Your U.S. Business Entity
The first step is to set up a U.S.-based business entity, such as an LLC (Limited Liability Company) or Corporation. This allows you to apply for an Employer Identification Number (EIN), which is required for most business credit card applications.
Open a U.S. Business Bank Account
Once your business is registered, you can open a U.S. business bank account to help build a relationship with U.S. financial institutions. This also provides proof that your business operates in the U.S., which is a key requirement for securing a credit card.
Use a Personal Guarantee
Many U.S. credit card issuers may require a personal guarantee for foreign nationals. Be prepared to assume personal responsibility for the debt, which may involve additional risk. This is common for international entrepreneurs and can improve your chances of approval.
Work with Specialized Lenders
Some financial institutions and fintech companies specialize in offering credit cards to foreign nationals. Research lenders who cater to international entrepreneurs and review their specific requirements to ensure that your application meets their criteria.
Build Business Credit
To increase your chances of being approved for a business credit card, focus on building your business’s credit. This can be done by opening lines of credit, paying bills on time, and making small, manageable credit purchases that demonstrate your ability to handle credit responsibly.
Conclusion
While obtaining a U.S. business credit card as an international entrepreneur may seem daunting, there are clear steps you can take to increase your chances of success. By registering your business, establishing a U.S. bank account, and working with specialized lenders, you can overcome many of the barriers to entry.
In addition to credit cards, it’s also essential to understand how to avoid high international transfer fees and speed up global payments. Streamlining your payment systems can save your business money and improve cash flow—especially when dealing with cross-border clients, vendors, or platforms.
At MyUSAService, we specialize in helping international entrepreneurs set up U.S.-based businesses, secure EINs, open U.S. business bank accounts, and navigate the complexities of U.S. financial systems. We provide expert guidance so you can confidently expand your business into the U.S. market and access the financial tools you need to thrive.
