Double Duty Daddy

Getting A Business Credit Card: Easier Than You Think

Lately I’ve had several questions from readers about business credit cards and how they can qualify for one plus which is the best to apply to. A lot of people don’t know this, but anyone can apply for a business credit card even if they don’t own a “business.” All you have to do is select “sole proprietor” as your business type in the application, use your name as the business name, and use your Social Security Number as the tax ID number.

Even though a sole proprietorship is a legal business, there are no formal requirements such as paperwork or registration fees for starting a sole proprietorship. The only qualification to be a sole proprietor is to claim you are a sole proprietor. I’m a realtor, I’m a sole proprietor. If you sell stuff on eBay, you’re a sole proprietor. If you freelance or do consulting, well, you get my drift. Any income that you receive apart from a paycheck from a company makes you a sole proprietor. Banks have very lax guidelines as what defines a “business”. 



Banks do pull your personal credit when they are deciding whether or not to approve you but business cards don’t show up on your credit report. That’s incredibly useful because you can carry a balance (not that you should ever carry a balance) and it won’t impact your score. There are a multitude of reasons why a business credit card combined with a few personal credit cards can be a power combination of racking up points and rewards. Here are a few reasons for getting a business credit card:

  • Maintains Separation of Business and Personal Expenses
    • It’s practical to keep your business expenses separated from your personal expenses. Only business-related expenses are deductible for a business tax return. A business credit card by its very nature will keep business expenses separate.
  • Expand Your Overall Available Credit 
    • Having a separate business credit card and separate personal credit card, each with its own credit limits, can give you more potential credit overall for your business and for your family.
  • Technology and Recordkeeping
    • By nature, banks offer special technology perks to business credit card holders that keeps track of purchases and allows you to snap a picture of receipts and save them. Having this technology can dramatically minimize the manual work needed to manage your finances.
  • Lucrative Points Earning And Perks 
    • Business credit cards offer huge bonus categories like the Chase Ink Plus where you can purchase gift cards at Staples and earn 5 points per dollar earned rather than a puny 1 point per dollar or  the Amex Platinum Business card where you get a $200 airline credit and access to the wonderful Amex Centurion Lounge.

So whether you own a million dollar corporation or sell $300 worth of items on eBay a year, you are eligible for a business credit card. The right business credit card for you, as always, will depend on your spending habits and lifestyle preference. Business credit cards are as lucrative as personal credit cards for points earning rewards and sometimes even more. The added perks like better purchase protection, airport lounge access, free airline credit and separating personal from business expenses, makes a business credit card a compelling addition to most anyone’s wallet.




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