I spoke to many people about credit cards. They don’t feel comfortable about applying for a business credit card. I tell them over and over again, whether you have a home-based business or that you have sold something on Ebay, you can apply for a business credit card. You can put your name as the business name and your social security number as the tax id. Your business is called sole proprietorship and it’s perfectly legal with the IRS. The absolute answer is: Yes, it’s a good idea to get a business card!

Top reasons to get a business credit card

  1. When you charge on your business credit card, the amount is hidden from your personal credit report. For that very reason, your credit utilization is lower hence you credit score stay higher.
  2. Business cards have the best 0% APR on purchases or balance transfer.
  3. For the most part, you are most likely to get a higher credit limit when applying for a business credit card. Make sure to request a high credit line on your application. Household income will dictate how much you get on your credit line for a regular card. With a Business credit card, issuers are willing to increase your credit need for your business startup.
  4. If you have reached the maximum credit exposure across the board with most issuers, now is the time to call them and ask moving your personal lines over to the business side to hide some of this available credit. After your credit profile is updated, then apply for more credit cards.
  5. Your punctual in payments is worth more when it comes to Business credit ranking and less on utilization. They see spending as investment leverage in order to grow your business.

I will review in details on how you can apply for new business credit cards.

When you click on a Business credit card like the American Express SimplyCash, enter your information like you normally would with name, DOB, Social Security, and so on. Fill out home address.

  1. They will ask you to fill out the business address, so simply check the box “My Home Address is the same as my Business Address”
  2. Put your full name as your legal business name
  3. Home phone is the same as business phone
  4. Pick an industry..any will do..Normally I pick retail since I claim Ebaying as my business.
  5. Years in operation: 1-2 years
  6. Federal Tax ID: LEAVE THIS BLANK They will assume leaving blank as sole proprietorship
  7. Annual Business Revenue: $1 - 25000
  8. Put down your name as your business name for the card.

I highly recommend the American Express SimplyCash, since you get 5% cash back on gas, office supplies, and wireless services. Then 1% cash back on everything else.

The above steps are perfectly legal. As long as you have sold anything on Ebay or Amazon, mowed someone’s lawn, painted a house, or washed a car and got paid for it, then you are a sole proprietorship. You do not need to file any paper to be a sole proprietorship. For tax purposes, your Social Security Number is your TIN.

One thing I would recommend is Do not lie on your application. If your business makes $0 so far, then put down $0. Many startup businesses start with $0 revenue. Don’t put your day job workplace as your business. That would be fraud unless you own the business.

The cards below are my recommended list of business credit cards.

There is No Balance Transfer Fee

  1. Citi Professional Thank You Card Network - 0% APR on Balance Transfer for 9 months ($100 bonus too)
  2. Citi Professional Cash Card - 0% APR on Balance Transfer for 12 months
  3. Citi Professional No Reward Card - 0% APR on Balance Transfer and Purchases for 12 months.
  4. Citi Premier Pass Business - 0% APR on Balance Transfer for 12 months ($150 bonus too)
  5. Citi Business Card - 0% APR on Balance Transfer and Purchases for 12 months
  6. Citi Business Card ThankYou Network - 0% APR on Balance Transfer for 12 months ($150 Bonus too)*

Balance Transfer Fee is Cap

  1. Advanta BusinessCard Rewards - 15 months 0% APR on BT. $50 cap on BT fee.
  2. Advanta Platinum BusinessCard - 15 months 0% APR on BT. $50 cap on BT fee.
  3. Chase Home Improvement Rewards - 12 months 0% APR on BT. $75 cap on BT fee.
  4. Chase GM Business - 12 months 0% APR on BT. $75 cap on BT fee.
  5. Chase Platinum Visa Business - 12 months 0% APR on BT. $75 cap on BT fee.
  6. Discover Business Miles - 12 months 0% APR on BT. $75 cap on BT fee.

Great Cashback Business Credit Cards:

  1. American Express SimplyCash: 5% cashback on gas, wireless services, and office supplies
  2. American Express Blue Cash : 5% cashback on everyday purchases
  3. Chase Business Rebate Card: 3% cashback on restaurants, office supply stores, gas stores, and more.

Great Bonus Points/Miles/Cash Business Credit Cards:

  1. Chase Continental Airlines Business: 20K Bonus Miles after first purchase. $85 annual fee.
  2. AmEx Platinum Business FreedomPass: 5000 points = $50 gift card after first purchase.
  3. AmEx Starwood Business: 10K Starwood points. No fee first year.
  4. AmEx Business Gold Rewards: 5000 points = $50 gift card. No fee first year.
  5. AmEx Gold Delta SkyMiles Business: 15K Skymiles after first purchase. No fee first year.
  6. AmEx JetBlue Business: 50 True Blue points = 1/2 free flight. $40 annual fee.
  7. CitiBusiness/AAdvantage: 20K Bonus Miles after first purchase. No fee first year.

Here are the many ways you can get money from the 0% APR Balance Transfer offers from above:

  1. Advanta: Request direct deposit to your checking account.
  2. Chase: They will send BT check or request the BT check with card, make check to yourself, and then deposit into personal checking account.
  3. Citi: Call and request BT check payable to yourself, and then deposit into your checking account.
  4. Discover: Call and request BT checks, write check to yourself, and then deposit into your checking account.