Do You Need a Business to Qualify and Apply for a Business Credit Card?

Do I Need a Business to Apply for a Business Credit Card?

The answer is “not really.”

Now, don’t take that too liberally either.  Let me be specific. You don’t need to have a registered business with its own business name. You don’t need an EIN (Employer Identification Number). If you have a full time business and an EIN, of course you are eligible. But you didn’t need to Google this article to find that out.

Assuming you don’t have a full time business, what is the criteria to apply for and be approved for Business Credit Cards? And why do you care?

First, you care because realizing that you are eligible for Business Credit Cards is a game changer with regards to the various new cards, new card bonus offers, and spending bonus categories that are available to you.

My top choice right now for a first Business credit card if you are just getting into the Business card arena is the Chase Ink Preferred Credit Card. It’s rich bonus offer of 100,000 Ultimate Rewards points is worth a minimum of $1,250, this card allows you to transfer those points to airlines and hotels, and also offers free cellphone insurance if you pay the monthly bills with your card.

As an aside, I also love the fee-free Chase Ink Unlimited (1.5X on everything) and the Chase Ink Cash (5X at office supply stores).  These cards both have bonuses of 75,000 Ultimate Rewards points when you spend $7,500 within 3 months.

Sounds great – but back to the story….

Do I Qualify for a Business Credit Card?

1) You do need to conduct business outside of a day job. You are not eligible if you have a salaried position and no other income.

2) A side business /gig / whatever…. DOES count. If you consult on the side, you qualify. If you sell things on eBay.com, you qualify. If you sell your crafts on Etsy, you qualify! As you can see, any side income – and there are many possible ways you might have that – counts!

3) If you do not have an official business name and an EIN (Employer Identification Number), you must apply in a very specific way. Do not mess this up or you will be declined. 

Here’s how to apply correctly

• Your business name is simply your own name. If you are “John Paul Smith” on your personal credit cards, then put “John Paul Smith” as your name and “John Paul Smith” again as your Business name.  If you use “John Smith” (i.e. if you don’t normally use a middle name) then use “John Smith” as your name and “John Smith” again as your Business name.
• Your Tax ID number will be your SSN (Social Security Number).
• Your business income will be the amount you are making or will earn from your side business (anything not salary).
• You would *not* include investment income etc, except if it is part of your business income.

If you meet the criteria above, my favorite small business cards are below. Different benefits for different preferences, so scan them all before choosing one.

You can also find the Best Business Credit Card Bonuses at Your Best Credit Cards.

Small Business Credit Cards	Bonus Offer	Best Features	More info
Chase Ink Business Preferred Credit Card	100,000 Ultimate Rewards points when you spend $8,000 in your first 3 months	Earns 3x points on travel, advertising, and shipping. This massive Welcome Bonus offer makes this card a great first business card. The bonus alone is worth $1,000 - $1,200 at a minimum. These points can be transferred to a range of Ultimate Rewards partners like United and Hyatt at a 1:1 ratio or spent in the Ultimate Rewards portal on travel with a value of 1.25 cents per point. Also provides complimentary cell phone insurance if you pay your monthly bill with the card. $95 annual fee waived the first year.	Learn More
Chase Ink Business Unlimited	Get $900 in the form of 90,000 Ultimate Rewards points when you spend $6,000 in your first 3 months. Points are transferrable if you also hold a Sapphire Preferred, Sapphire Reserve, or Ink Business Preferred.	Best for small businesses with a lot of every day spend. This card earns 1.5x everywhere. If you don't spend a lot in the bonus categories of other cards, or want a second card to pair with one that you use in the bonus categories, this is a great card. No annual fee. Pair this with the Chase Ink Preferred for a killer 1-2 card combo.	Learn More
Chase Ink Business Cash Credit Card	Get $900 in the form of 90,000 Ultimate Rewards points when you spend $6,000 in your first 3 months. Points are transferrable if you also hold a Sapphire Preferred, Sapphire Reserve, or Ink Business Preferred.	5x points on up to $25,000 in office supplies, internet, cable, and phone annually. There are lots of ways to maximize this amazing 5x benefit. If you combine these points into a Chase Sapphire Reserve account to book travel, it's like 7.5% effective cash back. No annual fee.	Learn More

Thoughts?

Let me know below in the comments, on Twitter, or in the private MilesTalk Facebook group. And don't forget to follow me on Instagram for all sorts of tips on miles, points, credit cards, and travel.

If this post helped you, please consider sharing it!

You can find credit cards that best match your spending habits and bonus categories at Your Best Credit Cards. 

New to all of this? My “introduction to miles and points” book, MilesTalk: Live Your Wildest Travel Dreams Using Miles and Points is available on Amazon and at major booksellers.