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.
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.
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 and LLC or EIN.
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
Want to learn more?
If you want to dive in deeper to all things business credit cards, download our FREE Complete Business Card Guide!
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.