Credit card sign-up bonuses are the fastest, easiest way to earn nearly-free travel. The points you can earn by opening a new credit card can quickly earn you enough to book flights and hotels for next to nothing. But with many banks so strict about the number of personal cards you can have before they deny your application, you may be asking yourself “how can I qualify for a business credit card?” And the good news is – it’s easier than you think!
What are business credit cards?
Business credit cards are designed mainly for small business owners. These owners need credit in order to purchase goods and services for their businesses. Typically the credit multipliers on these cards will be along the lines of “3x points on office supplies” or “5x points on advertising purchases.” Banks want to attract business owners, so they design the cards to be of greatest use to business owners. However, there are no rules about what you can and can’t purchase on these cards. You can use them for personal charges in addition to business charges.
What kind of business do you need to have to qualify?
The definition of a “business” for approval is quite broad, particularly if you are what is known as a “sole proprietor.” A sole proprietor is someone who owns and runs a business on their own. Some examples are consultants, bloggers, Etsy shop owners, etc. It means that you’re not in business with others and you haven’t filed for incorporation of your business. Chances are, if you’ve landed here, you’re a sole proprietor.
These “businesses” can be anything that earns you money outside of your regular, salaried or waged job. Some side hustles that can qualify you for a business card:
- Selling stuff on Facebook Marketplace or eBay
- Babysitting or pet-sitting
- Driving for Uber (yes, drivers for ride-sharing are considered sole proprietors, not employees)
- Delivering for Door Dash or GrubHub
- Writing a blog
- Selling stuff on Etsy or at craft fairs
There are so many ways to qualify! If you earn money outside of your job, chances are you can apply for (and be approved for) a business credit card.
Why would I want a business credit card if my business is tiny?
You should consider applying for business cards for the same reason you apply for personal cards – because they offer a great sign-up bonus and great perks that you will use to improve your travel experience. Just like personal cards, not every business card will be right for you. But you will likely find one that fits your needs well. Having the opportunity to apply for these cards expands the cards available to you.
Are there tax implications to using a business card for my personal expenses? Is that even legal?
First of all – it’s absolutely legal. You are of course going to be honest on your application, as you should with any and every financial document you complete. It is not illegal or inappropriate for you to charge personal items to a business card or vice versa.
For your taxes, you will likely want to keep scrupulous records of your business expenses and keep those separate from your personal expenses. Of course, every tax situation is different, and I am not a tax specialist, accountant or lawyer. Definitely talk to a tax professional about your situation if you are looking for information about how to file and how to document your business finances.
What are the best business cards?
There are so many business cards out there, and every business is different, so this will depend greatly on your individual situation. The business cards that I have – and love – are:
- Barclays Wyndham Earner Business Card: This heavy-hitter is an absolute must-have if you travel to Vegas often! It offers Wyndham Diamond Status, which you can then match to Caesars Diamond and MGM Gold. You can also transfer the sign-up bonus to Caesars Rewards points.
- Capital One Spark 2X Miles Business Card: This card earns unlimited 2x Capital One miles on every purchase – no need to keep track of spending categories. I love Capital One miles, so this is a great companion to the Venture and/or Venture X personal cards.
- Chase Ink Business Cash: With an all-time-best offer of 90,000 points and no annual fee (!!!), Ink Business Cash card deserves a place in your wallet. Despite the name, this card actually earns you Chase Ultimate Rewards points, which are some of the most valuable and flexible that you can own.
Not sure if you’re eligible for business cards? Want to get more personalized answers to your questions? Book a one-on-one consultation with me!