Getting Business Credit Cards (Even When you Don't Have a Traditional Business)

One of the most overlooked strategies for gaining more points is applying for, and utilizing, business credit cards. You may think that you are not eligible because you don’t have what you think of as a “business,” however, a business for the purposes of a business credit card is anything that makes you money. 

Any side-hustle will qualify, no matter how small. Just don’t lie on the application. I received a Business credit card from selling items on OfferUp with a gross annual business income of only $1,000, and many people have reported getting approved with $100 or even $0 revenue. 

So, if you sell items online, walk dogs, babysit, if you drive for Uber, or if you’re a blogger or content creator with the intention of making money, you can apply! This list doesn’t include everything. Anything you do that makes you money qualifies, so go for it! Even if you just started your business today for the purposes of getting a business credit card.

The application may look intimidating, but here is a guide to help you with your application:

Role/ Authorizing Officer Title: Owner

Tax ID #: Your Social Security Number

Type of Business: Sole Proprietor

Business Name: Write your exact legal name. Do not make anything up unless you have legal paperwork

Business Revenue: How much money your business makes in a year (not subtracting costs).

Business Address: Your Home Address

Time in Business: Length of time you have been in business (since date you started).

Business Industry: Choose whatever is closest to what you do.

Many times, you will get approved right away. If you are not approved, you can call Chase to ask them to reconsider. Don’t be afraid to do this. Many people have received approval after requesting reconsideration of their application. Just be ready to answer a few questions about your business (and be honest).

Chase Business Card Reconsideration Number: 1-800-453-9719

"CASH BACK"

The Chase Business cards advertise "cash back" and you can certainly cash out at a rate of 1 cent per point (i.e. 90,000 points = $900). However, if you have a Card with Chase that allows transfers (like the Chase Sapphire Preferred, the Chase Sapphire Reserve, or the Chase Ink Business Preferred) then you can just combine your points with the card that allows transfers, then use the points for flights and hotels to get way more value out of them than 1 cent per point.

WHY YOU WANT BUSINESS CREDIT CARDS

(1) More Points! These cards often come with high Welcome Offers. These are points that can be combined with the points you gain from the same bank with your personal cards as well. Even if you don't have a personal card, if you have the ability to transfer your points, you can transfer to get great value and use those points to travel!

(2) Keeps you Under 5/24

If you’ve never heard of 5/ 24, its something that you need to be very aware of in the world of points and miles.

This is a rule specific to Chase bank and what it means is that they will not approve you for one of their credit cards if you have received 5 or more credit cards in the past 2 years. This is important to know (and keep track of) because this bank often has good points-earning cards. You DO have to be UNDER 5/24 to get approved for a business credit card with Chase. HOWEVER, the interesting thing about business credit cards is that a vast majority of them actually don’t count towards your 5/24 status.

The known business credit cards that don’t count against your 5/24 status are business cards opened with Discover, TD bank, and any Capital One small business credit card except for Capital One Spark Travel Elite card and Capital One Spark Cash Plus. So, business credit cards (for the most part) are a great strategy for staying under 5/24, while still getting welcome bonus points

BE AWARE: POSSIBLE LOWER CREDIT LIMITS

If you apply as a sole proprietor, Chase may give you a low credit limit (for example, around $3K). So, definitely keep this in mind if you were thinking you have a large purchase coming up and you can get the Welcome Offer in one swipe. Because this will not work if you get a $3K limit and your purchase is over $3K. It will just get declined. When you have to spend $6K to $9K in 3 months, this could create the need for some planning, so just keep that in mind.