Business Credit Cards | Why You Should Get One & Tips for Applying

Business Credit Cards | Why You Should Get One & Tips for Applying

Hi there, it’s Ernest from Trip Astute.
In this video, we’re discussing how to get a business credit card, and more
importantly, whether you qualify for one. (light chiming music) Some of the best points promotions come
from business cards, and it’s sometimes unclear what qualifies a person to get a
business credit card. A lot of folks don’t realize that they probably qualify
for one, even if they don’t have a formal small business. First off, why would you
want a business credit card? For one, a lot of business cards have great perks
and benefits, and can often augment your current point strategy. For example, my
favorite points currency right now are the Chase Ultimate Rewards points, so I
have several cards that earn these points. The Chase Ink Preferred and the
Ink Cash are business credit cards that earn me a lot of Ultimate Rewards points.
For example, with the Ink Cash card, I earn five points per dollar on office
supplies, internet, cable, and phone charges. This not only comes in handy for
my internet and mobile phone charges, but also when I occasionally need to buy
gift cards, I’ll often stop at a Staples or Office Depot so I get the bonus. As of
September 2017, the Ink Preferred has an 80,000 point account opening bonus, which
is currently the highest of any Chase Ultimate Rewards earning cards. American
Express is also offering 75,000 points on their Business Platinum, and 50,000
points on their Business Gold card. So, how do you get a business credit card?
Well, you don’t have to own a major business to get one. Even small-scale
side businesses and gigs can qualify you for a business credit card. The key to
whether you qualify is that you must be for-profit. That doesn’t necessarily mean
that you have to be making a profit just yet, but that you’re engaged in either
performing a service or selling goods. So here are a list of some potential
examples. Things like selling items on eBay, driving for Uber or Lyft, tutoring
students, performing work on TaskRabbit, consulting,
acting, writing, coaching, photography, and real estate. And those are just some
examples. So before you jump in and apply, here a few things to consider.
Number one: Credit score impact. Business cards are a bit confusing when it comes
to their credit score impacts. There are basically two different credit bureaus.
One is for consumer credit, which is what we’re usually dealing with when we apply
for personal credit cards, and the other is commercial, which is for business
loans and credit. Almost all issues report your business credit card
activities to a commercial credit bureau, while some will also report your
activity to consumer credit bureaus. While this may not matter to a lot of
folks, it might be worth considering if you’re planning to get a loan from the
bank for either a mortgage or a business. I’ll include a link below that breaks
down how the major issuers affect your consumer and commercial credit when
applying for business credit cards. Number two: Describing your business. The
process for applying for a business credit card is a bit more complicated
than a personal card. You will need to provide information about the business.
One area that is sometimes confusing is the Employer Identification Number or EIN.
This is a tax identification number that you can register with the government
here in the US. If you have a business that you register as an LLC or
corporation, then you should have one. If your business is a side gig, then you’re
likely a sole proprietor, which means that you can use your social security
number. Sole proprietorships can also get an EIN from the IRS, and it’s often a
good idea to do so. However, it’s not required. Number three: Reporting your
income. The key is to always tell the truth. A lot of folks think that they need to
report high amounts of income to qualify for a card. However, this is not true. Even
if it’s a few hundred dollars a month, you can still qualify for a credit card.
It’s good practice to separate your business and personal spending, so it’s
completely legitimate to want to have a separate business credit card and
account, even if you’re not making a large amount of revenue or profit yet.
Number four: Relationship with the issuer. One of the best ways to improve your
odds of getting an approval is to have a relationship with the bank.
You don’t necessarily have to have a business checking or savings account
either. While that definitely helps, even having personal accounts that show
responsible credit use can help. Also, as I mentioned in our “Tips and Tricks when
Applying for Credit Cards” video, you can often offer some of your credit lines in
order to get approved for new cards. You can offer to have some of your personal
credit transfer to your new business credit card, which can help with getting
a final approval. Number five: Reconsiderations. I usually advocate
for people to call reconsideration lines when you don’t get approved for personal
cards. However, with business credit cards, I advise against it.
Since the process for approval requires a lot of information and consideration,
you’re generally better off waiting for a decision in the mail before contacting
them. However, if you get a denial or request for more info, don’t give up. You
can always ask to be reconsidered. If asked by the issuer, “why you want a
credit card”, just remember to be truthful and positive. Some reasons for wanting a
business credit card include keeping your personal and business expenses
separate, wanting to help grow your business, and also to grow your
relationship with the bank. Also, if you’re not making much money from your
small business, you might want to think about how much you think you could be
making in the future. When I’ve called reconsideration lines in the past, they
seem to be interested in my forecasted revenue, so it might be helpful to have
some numbers and figures in mind when speaking to the reconsideration line rep.
And those are some tips and considerations when applying for a
business credit card. Do you have any experience applying for a business card?
If so, please share your experience below. Also, let us know if you have any
interesting side gigs or businesses. If you enjoyed this video or found it
useful, please hit the “like” button. If you’re new to this channel, consider
subscribing as well and check out our two “Points and Miles” playlists. One is
for those getting started in the hobby, and the other is for more advanced and
experienced folks. Until next time, travel safe and travel smart.

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About the Author: Oren Garnes


  1. Ernest happy Friday ! Another great video 🙌🏽. I sell Roadside Assistance on the side , and use Fb ads will getting a business card help for cost spend on ads ? Great shirt by the way 😁 blue is my favorite color .

    Jose P.

  2. I was recently denied for approval on the Chase Hyatt card, would you recommend that I call and ask to be reconsidered? The letter mentioned I had too many recent accounts open. If not how long should I wait before reapplying?

  3. I was denied for the amex blue business for not having at least 6 months of credit, should I wait another 4 months before applying for a personal card as well or is that for business only? (I currently only have 2 months of credit)

  4. Great video! I have multiple side gigs and websites and have formed an LLC. I do a lot of marketing for my web hosting and domains business and have been considering applying for a business credit card.

  5. I appreciate the info. I recently obtained the Amex Business Gold. It was relatively easy, but I have a long standing relationship with Amex. The Chase Ink Preferred with the 80 k Bonus is next. Can you transfer your Ink points to a family member's CSP account? Thanks

  6. I do instacart which is like uber/lyft but you go and buy/deliver groceries. You get a 1099 so I think this would be considered a business. What do you think?

  7. I've been rejected for the INK Cash twice. Hopefully this years go around will be different.

  8. Hey there!
    I’m an Uber driver in NYC and I don’t own any business.Will I be qualified for a business credit card?
    And are chase business cards included 5/24 rule?
    Thank you!

  9. Ernest – question When you applied for your Chase Business Cards did YOU give up your Socia Security ? If NOT,
    HOW exactly did you get Approved and Reported for Business Credit ? I really wanna know…thx

  10. I’m confused, say on day 1 of the monthly cycle I spend $500 then do not spend anything until the end of the circle. Would I get charged the same amount of interest if I spent $500 on day 29 of my circle instead of day 1? As from day 2-28 do they work out the interest on a daily basis?

  11. Does having a chase business card inherently mean that you will have to file separate taxes for your sole proprietorship even if your business is just mowing lawns, reselling on ebay, etc…

  12. Great videos! Do the credit card companies look at or care if you charge personal expenses on a business card?

    I’m a landlord so I have a small business. So I really just want to get one for the initial bonus points and just the rewards you can get. Like the Amex Blue Business that earns 2x points on everything.

  13. i’m about to start up my first store and i’m not sure how this whole payment thing works. should i apply for a business credit, debit card, or both? and should i apply before i start up my business or wait til i have consistent income to apply for for them?

  14. Great video, Ernest!! Very informative and easy to understand!!

    I just opened a Chase checking account in mid-June, and got the Sapphire Preferred in late June. I'm a freelancer in TV, and looking into getting the Ink Business Cash to pay my FiOS Triple Play (cable, TV, and phone). It's now late August, so I've only been with Chase for 2 months. However, I've had 9 years of credit history with another bank and have an excellent credit score. How much longer should I wait before applying to the Ink Business Cash card?

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