All About Business Credit Cards and How to Apply for Them
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EDITORIAL DISCLOSURE:
Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
*Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.I know what you’re thinking…business cards are only for big businesses with lots of expenses and an LLC. But that’s actually not the case at all!
Business credit cards are also for small business owners, those without a huge annual income, and those without an LLC or EIN. And there are so many perks of business credit cards so it’s important to know if you’re eligible and how these can level up your award travel game.🌟
Benefits of business cards
One of the biggest perks of opening business credit cards is that most don’t count toward your 5/24 status (if you’re not sure what this means, you can read all about it here). This policy from Chase restricts the number of credit cards you can open from their bank depending on how many personal cards you have opened in a 24 month period (from any bank). Opening business cards will help you with your long term strategy and will also allow you to open cards more often as you alternate between personal and business credit cards.
Some business cards also come with larger welcome offers or no annual fee (like my top two favorite business cards: Chase Ink Business Cash® Credit Card and Chase Ink Business Unlimited® Credit Card), which means truly free travel with your points earned! These cards offer flexible rewards and are great starter cards for your business.
➡️ Learn more about Chase Ink Business credit cards here!
You’ll also find business credit cards with much higher annual fees, but a huge offering of perks and benefits to help offset that cost. Consider the The Business Platinum Card® from American Express: it comes with a hefty annual fee but dozens of benefits that can amount to huge savings worth even more than the fee you’re paying!
Who is eligible?
It is a common misconception that you must have a huge business with an LLC and lots of expenses to be able to apply. My very first business credit card was for my Facebook Marketplace business where I had an annual income of about $500 per year! And I didn’t have an LLC or EIN. Most people who apply for business credit cards are applying as a Sole Proprietor with the SSN.
Many small side hustles or businesses can qualify for a business credit card, like photography, nannying, freelance writing, eBay sales, baking cakes, etc.
How to apply
✏️Filling out a business credit card application is much like completing a personal card application, but there will be additional sections to complete about your business. Here are some helpful tips on how to complete those sections:
Legal name of business: Without an LLC, we recommend using your own name here
Business name on card: Legal name here as well if you do not have a business name. Some banks require a separate business name, so you can just make one up for your business if needed
Business mailing address: Your home address if you don’t have a separate business address
Type of business: Sole proprietor (if you do not have an LLC)
Tax ID number: Use your SSN here if you don’t have an EIN
Business type: Pick a category that is closest to your business type; the categories are very broad and may not match exactly
Number of employees: 0 (unless you have other employees besides yourself)
Annual business revenue: This will be your expected annual revenue, including projected future income for the year
Years in business: Input the total number of years you have had this business whether or not you were making money
Gross annual income: Put the income of your whole household
Bottom line
Each year, the majority of the points I earn come from business credit cards. It helps me continue to open cards longer (thanks to most not counting toward 5/24), many come with large welcome offers that help me rack up points even quicker, and it opens up so many more points earning opportunities!
So while it may seem a little daunting at first, once you learn how your small business can help turn your spending into big travel rewards, there’s no looking back. ✈️🏝️💺
EDITORIAL DISCLOSURE: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
