June 13, 2022
How to Qualify for a Business Credit Card
Alex
There are a lot of great personal credit cards out there to help you travel for free, but if you add business cards to your stash you open up even more possibilities! I love business cards because the majority don’t go towards your Chase 5/24 count. Only business cards from Capital One, Discover, and TD Bank will count towards your Chase 5/24.
Secondly, business credit cards sometimes offer higher signup bonuses than personal cards. Take the Chase Ink Business Preferred card for example. The standard welcome offer is 100,000 points. That is the highest signup bonus of any Ultimate Rewards earning card. The standard offer on the Chase Sapphire Preferred is 60,000 points. That is a significant difference!
Many co-branded cards (Marriott, Delta, etc) offer personal and business cards. If you just stick to personal cards you are leaving a lot of points on the table. Some people are scared off because they are unsure how to qualify for business credit cards. Luckily, it is easier than you may think!
Want to hear more about business cards? Listen to this podcast episode!
Do I Qualify for a Business Credit Card?
Many of you might be wondering how to qualify for a business credit card if you are a stay-at-home mom or don’t have a business. Well, guess what, you might actually be participating in something that counts as a small business!
Do you sell items on eBay, Amazon, or the local classifieds? Teach music or sports, or nanny? Are you part of a network marketing company? Do you make and sell crafts? Are you a photographer, blogger, freelance writer, baker, Uber driver? Are you thinking of starting a business? If you do any of these things or provide any other service then you operate a small business.
How to Fill Out a Business Credit Card Application
First and maybe most important, don’t lie on your application. There is a chance you could be asked to provide documentation that proves you are a small business owner.
Here is the business information portion of the credit card application. For this example, we will use the application for the Chase Ink Business Preferred card.
The legal name of business:
This is the name of your business. As a sole proprietor without a registered business, don’t make up a business name, put down your own first and last name.
Business name on card:
This is the name that will be displayed on the card. I would use the same name you used above.
Doing Business As:
If you don’t have a DBA or a trade name, select “No.” Don’t make up a name for your business.
Business mailing address:
Put your home address if you run your business out of your home.
Type of business:
From the drop-down menu select sole proprietor if you are the only owner in your business, or whichever one applies to your business.
Tax identification number:
If you don’t have one, then put in your social security number. If you would like to register for an EIN it is free and easy to do online.
The number of employees:
This is the number of employees in your business. As a sole proprietor, you would enter 0.
Annual business revenue/sales:
Enter the total amount of money you make annually from selling your goods or offering your services. If you haven’t started making any money yet, you can put your projected annual revenue.
Years in business:
This is the number of years you have been in business.
General Industry/Category/Specific type:
Choose the options that most accurately describe your business.
Personal Section
After completing the business portion you will then fill out a personal section. This portion is very similar to a regular credit card application. Remember under total gross income to include what you and a spouse make, if applicable.
Submit the application and sit tight! You most likely won’t get an instant approval when applying for many business cards. Instead, it will go into pending.
To stay up-to-date on what is happening, you can call this number:
Chase Application Status: 800-436-7927
If you get denied, you can call this number:
Chase Reconsideration (Business): 800-453-9719. They may just need some more information about your business. Send me a message anytime if you have questions about applying for a business card or what to do if they ask you to verify your business. I’ve been there!
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What about tax implications? Do you need to claim the charges on the card as business expenses? DO you need to claim the money you get from selling on Facebook marketplace, for instance, as business income?
Thanks for this post! I’m interested in applying for a business card but to qualify for the MSR, I’d likely need to put some personal spend on the card. Are there any negative repercussions for using the card for non-business expenses?
Many people, us included, use business cards for personal expenses.
Hey! So I understand that the requirements for what qualifies as a “business” are not hyper rigorous, but are you then only able to buy things related to that business on the card?
Using your example, if your business was nannying, could you only use the card for things like toys/snacks/transport?
No, Justin. Most people use their business cards for personal expenses. We certainly do. We have readers who are accountants that do also.
I had a registered business years ago but haven’t done anything with it in the last 3 years. Would that qualify or would I have to re register with my state? Also, my husband just started his own small business but I would want to be the one to open a southwest business card because I fly more. Does my husbands business do anything for me in this situation?
Trying figure out where Marketplace sell falls under the business category. Retail used ? I am confused
Honestly, don’t be overly concerned – just pick what seems closest to you.
How does credit score play in with applying for a business card? If I’m using my social security number will it run my credit to see my score? I’m in the midst of rebuilding my credit after a bad vehicle loan ruined my credit. Thankfully my score has gone up 250+ points since getting out of that loan. My husband is a soccer referee and I have an Etsy shop that I just started.
A hard inquiry can cause a small, temporary drop in your credit score.
I was asked to verify my ein number and name and address. What do I send them?
Usually you send a copy of the letter sent to you with EIN because it has your address on it also.
Hi so I’ve been denied the first time due to poor credit for the chase business preferred. Called reconsideration and told them that the score they reported in my denial letter was incorrect, they saw that I was right (my score was 48 points higher) and told me I’d hear from them after a couple of days as they reconsider it. Still denied. Called reconsideration again, they looked over my account and denied me again for having too much available credit.. I keep tearing walls down and they keep building a new one.. at this point would you keep trying? If so what would you say.. they told me I can keep trying up until 30 days after applying (which lands on 8/18/23). Please help, thanks!
If it was me, I’d give it a rest and go on to another card or another issuer. But there are others who are successful with consecutive calls. There is no “right” answer here, just what you feel comfortable doing.
If I am using selling things on marketplace and I make a few hundred dollars per year is that what I put under “annual revenue/sales”? I thought I had read somewhere to also put your annual combined income here? Thanks!
There is a place for your business income AND another place for your combined annual income.
Do I need to unfreeze my credit if I’m using an EIN?
Yes, as you still give them your SSN>
Thanks ladies for this detailed help to apply for Chase business card. I was approved right away when I applied because I followed your instructions. Looking forward to using more of your links for my next credit cards.
Thanks for all this detailed info (and for your great podcast episode on this). I’ve always been hesitant before, but ready to try it out now. One question I have from the Chase Ink Preferred application is it asks about “estimated monthly spend” on the card. My annual revenue will be on the lower end ($200-300). Does it raise a red flag if my estimated monthly spend is more than my revenue? And if I put a low spend, would it be less incentive for them to approve me?
Not really. Many people start with a low revenue for a new business and are approved.
So question regarding multiple businesses… are you able to apply for multiple of the same business cards if you have multiple different businesses with your also applying for an EIN for each of them. For example, if I had a sales business, a marketing business, and a worked as a free lance artist is it possible to apply for three separate Chase Ink Cash Business cards as a sole proprietor using only social security number? I can’t help but feel fraudulent in doing that but I don’t know all the logistics of this so don’t know how that would work out. But it sure would be awesome to rack up all those points if one could! Thanks in advance for all that you do!
I can’t say for sure, but I can tell you that I have heard of some people doing that. As far as myself, I have three of them. One with EIN, one with sole proprietorship for business, and one for another business with EIN. I was also denied for my last Ink business application so velocity gets in the way at some point. Taking a breather on them for a bit.
Thank you so much, moms! I never would have had the courage to apply for this card even though I’ve been working as an independent artist for years (who knew I was running a business!?) and I just got automatically approved! I am stunned. I cannot thank you enough, my fiance and I are planning to use these points from the signup bonus toward our honeymoon flights.
Congrats! Have a wonderful honeymoon!
I just started Uber eats driving as a side gig (I have an everyday job) and haven’t made much (under 200.00), do you think I still should try a business card? Thinking about the Chase business ink card
Yes, you can! Go for it!
My husband and I are starting a business as real estate investors- will be creating an LLC very soon. Can we both apply for a business card under this same company? Thanks!!
Yes, you can. It might be easier to have one apply with EIN and one as sole proprietor, though.
How do you book trips for a family with transferring? If my husband opens a card and I do too, and we have points separately, do we have to book two separate reservations?
It depends on what type of card you are opening With the Chase Ink Business cards and all cards that earn Ultimate Rewards, you can combine your points.
I have an LLC with 2 partners. I want the card for the rewards points, but my partners don’t want/need another biz card. The application asks for the names/SSNs of the other partners. Do you know if there will be a hard inquiry for them?
I would just apply as a sole proprietor with your SSN and bypass all of that.
I don’t make a ton, but I earn credit card points on my personal cards by paying for literally everything on them, including rent! Can I put rent on this card, too, or will that get flagged as a personal expense? I do work out of my home (I actually have an Etsy store) so I wondered if that’s enough to count as a business expense? What about putting medical expenses on a business card? Will that be flagged?
We put personal expenses on our business cards all the time. The IRS and credit cards don’t talk to each other. Your Etsy store will definitely work. Rent cannot usually be put on a credit card (except a BILT card).
“This blog post offers a clear and concise guide on how to qualify for a business credit card, a valuable resource for entrepreneurs and business owners. Qualifying for a business credit card is a crucial step in managing finances and building a business’s creditworthiness. One additional tip I’d like to share is that you can use a digital business card. In our increasingly digital world, a digital business card can help streamline networking and make a lasting impression on potential clients or partners. It’s a convenient and eco-friendly way to exchange contact information. Thanks to the author for providing these insights on credit cards and for acknowledging the modern utility of digital business cards. It’s a post that can benefit both established businesses and startups looking to manage their finances wisely.”
Hello I have an instagram page of my nature photography and don’t have have any registered business yet. The blog mentions that we could be qualified if you are thinking of a business. Can I apply by telling that I would like to start my nature photography business?
You would just “guess” what you could make with your business. No one actually is going to check on it to make sure that you make that much money. People with low business income, still get approved. The key is to put your total annual income in that spot.
How does making purchases on a business card change the tax filing process? Do you have to identity all of your “businesses” when filing? Do you have to report all of your expenditures to the IRS? If I applied it would have to be as a person who periodically sells items on Marketplace. That would be sufficient? Would you recommend applying with an EID or SSN?
It doesn’t. I keep a separate spreadsheet of my business expenses for tax filing purchases. The IRS and credit card companies do not “talk” to see that you are only using the card for business purposes. I would apply with SSN. I don’t pay taxes separately as a business – it is just part of my personal reporting.
Should I wait a certain amount of time after opening a personal card to apply for a business card (as sole proprietor/using my SSN)?
You can do both within 30 days with a chase card.
I just applied and the response is that my application is in review. Does that mean I didn’t get it? I’m worried it may be because I messed up when I entered my annual business income and monthly spending. I estimated my annual earnings at $5000 and then incorrectly entered $1500 as my monthly spend, which really should have been more $200 monthly. Should I call them to fix this or just wait? And do you think they’d even approve me at such low numbers?
Most business cards go into review. I would wait a week and then call the reconsideration line to see if they need more information. I don’t think the numbers you put down would reject it.
Yay! Even though I messed up the math, I still got approved!!!! Thank you for the reassurance.
I got approved immediately for the Chase Ink Business Cash following your instructions, but my credit limit is only $3,000. Is that a normal credit limit for this card? I have 820+ credit score. I only reported $1500 annual and $200 monthly expenses.
That is normal. That is what I got too. Just okay it off when you get to that limit and you can continue using it.
Hi! I have both ink cards as sole proprietor- applied for my player 2’s llc and was denied (tried reconsideration) He was young credit. I’m wondering if I can get another ink using his llc and ein with my social as I am listed as president on the llc? I really want another ink 🙂
Usually you recommend keeping your P2 off your CC so it wont’ count towards their 5/24 rules etc. However, if business cards don’t show on your CR and you can add employee cards, do you put your spouse as an employee so they get a card and can help spend the minimum needed?
Also, how do you manage hitting min. spends with regular CC’s with only one card (no authorized users). My P2 and I are often apart when spending $$ so i’m worried about getting all of our expenses on one card at a time. Thanks!
You can load the credit card into the other person’s wallet on their phone’s Apple Wallet.