Do I Qualify for a Business Credit Card? Hint: You Probably Do!

Business credit cards are a fantastic way to build up more points and miles. The first thought most of our  followers have when they see a business card recommendation is ” I don’t have a business, so I can’t get that card”. What if we told you it’s actually super easy to qualify for a business card?! In the eyes of the bank, a business is an entity with the intent to make a profit. Does it actually have to make a profit? Nope. Does it have to have an EIN or LLC? Also no! 

Here are some things that may qualify you for a business credit card that you may not have thought of:

• Selling items on Facebook Marketplace
• Ebay
• Craigslist, etc.
• Owning a rental property or a house with the intent to sell for profit
• Driving for Uber/Lyft
• MLM
• Consulting
• Manual labor
• Walking dogs
• Babysitting
• Photography
• Freelance work (1099 contractor)
• Blogging, and the list goes on. 

Benefits of Business credit cards: 

• The majority of business cards do not count toward your “5/24” and do not show up on your credit report*

• Some have no annual fees, and some also offer 0% intro APR for the first year (Hello PCS season!) 

• Depending on the card you hold, the points/miles earned can combine with your personal accounts. Here are two examples: If you have a Chase Sapphire Reserve® or a Chase Sapphire Preferred® credit card, the Chase Business Ink credit cards can combine with your Ultimate Rewards Points earned on your personal cards. if you have a personal Southwest® and a business Southwest® credit card, the points will combine into your Rapid Rewards account. 

• The biggest “pro” is the amount of points you can accumulate when you jump into the world of business cards! 

Downside to Business cards: 

• Business cards usually have larger minimum spends to meet – There was a recent change to the Chase Ink Business Cash® Credit Card, and you now have 6 months from card opening to meet the $6k minimum spend. 

• Business cards can take a little longer to be approved, so don’t be alarmed if your application goes under review. If approved, we recommend calling the bank and asking for the card to be expedited so that you can begin working on the minimum spend as soon as possible.

Our Favorite Business Credit Cards:

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bonus_miles_full

Annual Fee: annual_fees

Why we love it? While this card is marketed as a cash-back card, you will receive Ultimate Rewards Points that can be cashed out. But, if you also have the Chase Sapphire Preferred®, Chase Sapphire Reserve®, or the Ink Business Preferred® Credit Card, you can combine these points to your other account and now be able to transfer to Chase’s travel partners like Southwest, United, Hyatt, etc.

We also like this card for it’s category spend. You can’t beat the 5% back per $1 spent on the first $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services each account anniversary year and 2% back per $1 spent on the first $25,000 spent in combined purchases at restaurants and gas stations each account anniversary year. This is great if your business involves a commute!

card_name

bonus_miles_full

Annual Fee: annual_fees

Why we love it? Like the Ink Business Cash® Credit Card, this is also a cash-back card. However, like the Ink Business Cash® Credit Card,  if you have the Chase Sapphire Preferred®, Chase Sapphire Reserve®, or Ink Business Preferred® Credit Card, you can transfer them to transfer partners as well.   For no annual fee, 1.5% back per $1 spent on all purchases is a great option to have in your wallet!  

card_name

bonus_miles_full

Annual Fee: annual_fees

Why we love it? This is actually a travel rewards credit card that earns Ultimate Rewards Points that can be transferred directly to transfer partners (You do not have to have the Chase Sapphire Preferred® or Chase Sapphire Reserve® to have access to their transfer partners). With the Ink Business Preferred® Credit card, you’ll earn 3 points per $1 spent on the first $150,000 in combined purchases in the following categories each account anniversary year: shipping purchases, internet, cable, phone, advertising purchases made with social media sites & search engines, and travel.

You can apply for a business credit card as a sole proprietor using your social security number. You do NOT have to have an EIN. If you happen to have one, feel free to use that OR your social.

Need Help Applying? Use this graphic to walk you through the application process.

Final Thoughts:

But will business cards impact my taxes? No. The only way your taxes will be impacted is if you refer friends and family and receive a 1099-MISC for your referral bonuses, but these have nothing to do with opening a card or the spend on your cards.