If you have a side hustle and think that you have to operate a company with tax id, employees and make hundreds of thousands of dollars a year in revenue before you are eligible for business credit cards- NOT TRUE! You probably qualify right now and don’t even know it.
Why we love business cards!
Business cards have great sign up bonuses and also generally have extra perks. They also have incentives that increase your points quickly (think 3x points on dining spending or 5x on travel).
Another great reason to get a business card is that they don’t count toward something like a 5/24 rule from Chase. You do need to be under 5/24 in order to apply for a Business card from Chase, but you can have multiple Chase business cards open in one year and it won’t affect your 5/24 for personal cards.
And last but not least, the number of business cards available to open is pretty endless, with lot and lots of choices, so often enough there is an elevated bonus on a business card somewhere!
What Qualifies as a Business?
A business can be not only a traditional business that earns income and has business expenses, but also small businesses and side hustles that earn income on the side. Here are some examples of what would qualify as a small business for a credit card:
- Ebay or Craigslist selling (this was how we got our first biz card)
- Photography
- Freelancing jobs (like a graphic designer)
- Selling items on Etsy
- Dog walker/sitter
- Exercise instructor/training
- Babysitting/daycard
- Tutoring
- Renting your house on Airbnb
Helpful hints when applying
- If you applying for a business card and you have a side hustle, make sure to apply as a sole proprietor. You don’t need a Tax ID, instead use your Social Security number to apply.
- Don’t worry if you business isn’t expected to make massive income, just be honest about how much you EXPECT to make this year.
- You don’t even need a formal name for your business. You can use your own name as a business name if you need to.
- You can use a business card for both business and personal expenses, but if you have both, keep track of which is which for taxes.
Higher Minimum Spending
One harder aspect of Business cards can be that the spending needed to get a bonus can be higher than a personal card. We try to open a business cards when we have a big planned expense coming up. Some examples would be a home improvement projects, buying furniture, planned surgeries, a big trip that we were paying cash for.
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