July 11, 2023
Can I Get a Business Credit Card?
Pam
Without a doubt, if you can get a business credit card, you will get more credit card points and miles for travel. When you first think about business credit cards, you may think that only thriving, “real” businesses can get a business credit card. Not so. The question, “can I get a business credit card?” is probably a more straightforward “yes!” than you would initially think. Listen to more on our podcast episode about business cards here.
Pros of Business Cards
Here are some of the reasons you will want to consider getting a business card if you are planning to be in the points and miles game for the long haul:
- Business cards do not count against your 5/24 status.
- Your stockpile of points/miles will really grow when you can also get business cards.
Cons of Business Cards
- A higher minimum spend is usually required. This makes the holidays, vacation travel payments when you don’t have enough points/miles, or a time when you have to make a big purchase (tires, dental expenses, medical expenses, etc.) the perfect time to get one.
- Sometimes they are harder to get approvals for, and you may need to send in additional information, but it is usually as simple as an address or social security verification. Recently, with the offer change on the Chase Ink Preferred, we have seen an unprecedented amount of approvals.
Purchasing new tires is a great time to open up a business credit card.
Can I Get a Business Card?
Yes, you can! You don’t need that huge business to get a business credit card. Here are some ideas for businesses that you might not have thought of that you could count as a business, and NOW is the time to start a new business.
- Selling items on Facebook Marketplace or eBay
- Babysitting
- Dog Walking
- MLM sales
- Blogger
- Social media influencer
- Consulting
- Tutoring
- Rental Properties
- Personal Shopper
- Etsy Shop
- Reselling Items
- Lyft or Uber driver
- Photographer
Have you always wanted to start a blog? That new business could get you a business credit card!
How to Apply for a Business Credit Card
We have a whole post on how to apply for a business credit card. I usually apply for an EIN (Employee Identification Number). It is free from the IRS and gives my business more credibility (in my mind, anyway). It takes 5 minutes to apply for, and you receive it immediately if you want to go that route.
You can also apply with your Social Security number as a sole proprietor. Many people go that route.
Meeting Business Card Minimum Spend
People often wonder about putting personal expenses on business cards, which we do all the time to meet minimum spend! It does say on the T&C to use them for business expenses only, so do what you feel comfortable with. We have had no issues in our experiences.
We have also had many readers who are accountants say that it is fine. I do keep my actual business expenses on a spreadsheet for tax purposes to help at tax time.
Great Business Credit Cards
It will be no surprise to you that our favorite business credit cards earn Ultimate Rewards. We love the flexibility of this currency, so we are always trying to earn more. Without a doubt, the Chase Ink Business Cards are the ones I’d apply for first. Here are how you can use those points for flights or hotel stays.
Here are some other great credit cards that I recommend. They have higher annual fees, but the benefits often reduce that amount. I would also recommend business cards from your favorite airlines.
- World of Hyatt Business Credit Card
- American Express Business Platinum
- American Express Business Gold
Bottom Line
People are always asking us how we get so many points/miles to use for all of our travels. Business credit cards are a huge reason that we have so many points/miles to use. If you are wanting to travel with a family, they can really increase your stockpile quickly. NOW is the time to apply for your first business card!
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Can you downgrade business cards or do you cancel those after a year to be able to sign up for them again?
We keep the ones with no annual fees until we can sign up for them again – 24 months between getting the bonus. We keep the ones with an annual fee open at LEAST a year.
What does this look like? If you got a card on 3/31/2023 do you cancel on 03/31/2024? Or do you wait until a week or two later? And do you get charged a second annual fee?
Wait until you see the annual fee post. You then have 30 days to make a decision. If you cancel within that time, they credit the annual fee. With a card that doesn’t have an annual fee, like some of the Ink Business cards, don’t worry about it.
I understand that business cards don’t count against your 5/24, but do I still have to be under 5/24 to get approved?
You will need to be under 5/24 to be approved for a Chase Business Card but can apply for business cards from other issuers while you are over 5/24.
Is there any legality around using your expenses on your business card? Or do all purchases (in regard to reaching your minimum spend and beyond) on your business card have to be specifically “business” related?
You influenced me! just got my Ink Business preferred. Are we not worried about the big “ Business Transactions Only” note on the bottom of the page the card comes in?
Nope, we aren’t. No-one checks on that and we all use our cards for personal expenses.
I opened my first business card on June 17 this year. It is a Chase Ink Business Cash. After listening to your recent podcast, I realized I have another “business.” Since it’s a different business, can I apply for another Chase business card now or do I need to wait a few months?
I don’t have an exact answer on that – it varies from person to person. If it was me, I’d probably give it a try or wait a few more weeks. But definitely not months.
if you were to get just one…the chase ink business preferred or the unlimited, which one would you get? and why? thank you!! love following you ladies
If I didn’t have the Chase Sapphire Preferred, I’d get the Business Preferred for the ability to transfer points. If I was choosing between one of the 90K offers, I’d get the Chase Ink Business Cash.
Hi! To reapply for the card after 24 months, do you have to cancel the card first or simply reapply?
You need to cancel it unless you are just getting it another way like another EIN number or as sole proprietor.
Do you have to report your business on your taxes for it to be “real” according to the credit card company?
The credit card companies and the IRS don’t talk to each other. So, nope! I report business earnings on my personal account.
My husband just opened the Chase Sapphire Preferred bcuz of YOUR awesome content advice…(thanks). So with that being said, which business card do you recommend for us?
I got the Ink business preferred at the end of August. Should I still wait the normal 90 days and try to apply for the business cash or can I do it sooner?
You should wait at least 30 days and it’s been more than that so I’d go for it.
Can you apply for the 3 chase ink cards within 2 months of applying for one using 1 EIN number?
You might get lucky, but I doubt it. I would separate them by 60 days at least.
Hi THM,
Thanks for all you do. So I’m currently at 5/24 set to have one drop off in a month or so. I have time but perhaps not the patience to wait for another chase card. I was wondering, If I were to apply for another chase business card using an EIN, rather than my personal SSN, would that be a way around the 5/24 rule at least for business cards? I don’t want to miss out on the awesome SUB the ink cards have currently. For reference, by current business cards I have applied for with my SSN as “side hustle” type businesses but I also have a true business that earns regular tangible income as well. Thanks in advance!
If you are at 5/24 you won’t get approved for a Chase business card until you are under 5/24. You could apply for another card issuer business card in the meantime and have it not count.
No! I haven’t heard about that at all. I would call again and ask someone else about it, asking for an extension on the spending time. Please let us know if you hear anything.
Thanks for responding! I was finally able to get in touch with someone today. They really could not explain the hold and why I was not notified. The very nice man did say the company puts holds on cards and checks them out once in a while (which I thought was odd), but he did ask if I was trying to purchase gift cards at Walmart which is a common scam. He said he had no idea why I was not notified as my info in the system is there and accurate. Weird glitch I guess!! Keep a watch on those cards is the lesson I guess.
Thanks for responding! I was finally able to get in touch with someone today. They really could not explain the hold and why I was not notified. The very nice man did say the company puts holds on cards and checks them out once in a while (which I thought was odd), but he did ask if I was trying to purchase gift cards at Walmart which is a common scam. He said he had no idea why I was not notified as my info in the system is there and accurate. Weird glitch I guess!! Keep a watch on those cards is the lesson I guess.
Hi! Been listening to the podcast and I’ve heard Pam mention multiple times that she has N number Amex Business Cards.
How do you manage the annual fees? Do you actually close the cards after a year, or do you keep them open and make use of the Dell, airline, etc benefits to offset the yearly fee?
Concerned about opening and closing business accounts too often and garnering a bad rep with the bank.
Thank You!
I usually keep them a couple of years making use of all the benefits to offset the yearly fee. Then I start canceling them but NOT all during the same year.
Wow! Appreciate the quick response. Happy Thanksgiving!
That sounds like a plan. I figure I can offset the costs with a little bit of work and will keep them open for a bit as well.
Thank you!
I do private soccer coaching, which I will be using as my business (and also putting on my taxes), and I’m wondering if I should get an EIN or just use my SSN for the card?
Thanks!
You could actually do both! I have business cards with my SSN and my EIN. It gives you. the opportunity to get more cards.
Let’s say I don’t technically have a “real” business, but that I’d like to start making and selling homemade goods ( like kefir, hot sauce, sourdough, etc ) here and there to friends or family……basically not knowing if it will sell or not nor would it be consistent income….just a hobby that might make like 5 bucks a month, if that. Would this type of “business” qualify me to apply for the ink business card? What requirements do they ask for? Would I have to report the income? What if I don’t sell anything for a couple months? Would they shut my card down and consider this fraud?
Many people start businesses, get cards, and don’t make a ton of money. Under projected income, keep it low. Then be sure and put total household income down on the area that they ask for that. If you use SSN and open as sole proprietor they don’t ask anything. You’d just report income on your personal tax file. They will never be checking to see how “much” you sell. The banks and IRS are separate entities.