One of our readers, Frank Mills, sent us this question:

I have heard that you can apply for a business credit card and get a fresh start by using only the tax id number but it seems that all of the cards that we have checked want your social security number. Is there such a card to apply with only the tax id number?

Thanks for your question Frank.

Here is the answer:
If your business is a sole proprietorship, then you will almost always be asked for your social security number, as well as your Tax ID number before you will be able to get credit.

There are some online rumors and “advice” that cite companies like Staples and a few other companies (see the list below) that will allow you to open up an account without your social security number.

So, from here you really have to take a quick look at your motivation and goals:

1) If your personal credit is bad, and you are only starting the business with the hopes of a quick fresh start in the credit department, then you would be better off not starting a business.

Instead consider getting a secured credit card and making the payments on time.From there you can start applying for retail credit cards, and then after another 6 months to a year of on time payments you can move up to an unsecured Visa or MasterCard. This will raise your credit score legitimately and does not really take that much effort – just the initial deposit for a secured credit card, and regular payments. (Check out this link for our reviews of the best secured credit cards to rebuild your credit.)

2) If you really want to start a business and you have bad personal credit, then you will want to take the following steps:

• Staples
• Office Depot
• UPS
• FedEx
• Chevron Oil
• TMobile
• Nextel
• Dell Computers
• Office Max
• Cingular
• Or bite the bullet and apply for a secured business credit card to start building up your credit rating.

From there you should be well on your way to establishing excellent business credit.

Have a question for us? Leave a comment below!

American Express has just come up with a new cash back business credit card called the American Express SimplyCash^SM Business Card.

While all of American Express cash rewards credit cards have a tiered rebate formula, the Simply Cash has a simple formula. You earn 5% rebates for purchases of wireless telephone services, automobile gasoline, and office supplies and equipment and 1% rebates for all other purchases. You can earn unlimited rebates.

In my opinion, I think this card is better than the Advanta Platinum with Rewards because it has no caps on the amount of rebates you can earn. It is better than the Chase Business Rebate Card as it pays 5% rebates on certain business expenses versus Chases’ 3%. I also think it is slightly better than the Blue Cash for Business because you can earn unlimited 5% rebates on the specified categories.

If you are a small business owner looking for a cash reward business credit card, this will the the card to get.