{"id":9484,"date":"2024-10-14T14:58:10","date_gmt":"2024-10-14T14:58:10","guid":{"rendered":"https:\/\/travelaffiliatewebsite.com\/mer\/9-reasons-to-get-a-business-credit-card\/"},"modified":"2024-10-14T14:58:10","modified_gmt":"2024-10-14T14:58:10","slug":"9-reasons-to-get-a-business-credit-card","status":"publish","type":"post","link":"https:\/\/travelaffiliatewebsite.com\/mer\/9-reasons-to-get-a-business-credit-card\/","title":{"rendered":"9 reasons to get a business credit card"},"content":{"rendered":"

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Editor\u2019s note: This is a recurring post, regularly updated with new information and offers.\u00a0\u00a0<\/em><\/p>\n

Many business credit cards<\/a> offer rewards and benefits that are just as great, if not better, than those offered by\u00a0personal credit cards<\/a>.<\/p>\n

Plus, business cards often have\u00a0huge sign-up bonuses<\/a> and\u00a0unique\u00a0category spending bonuses,<\/a> among other perks.<\/span><\/p>\n

However, some people might hesitate to apply for a business credit card, even if they\u2019re eligible<\/a> to do so. In case you didn’t realize, you don\u2019t need to own a formal brick-and-mortar business to be approved for a business card.<\/p>\n

Whether you\u2019re a freelancer<\/a> or starting a new side hustle, there are plenty of great reasons to add a business credit card to your wallet.<\/p>\n

Here are some of the most compelling.<\/p>\n

You don\u2019t need a large business to get a business card<\/h2>\n

You may think you need an incorporated business with its own tax ID number or employee identification number to apply for a business credit card, but that\u2019s just not the case. In fact, you might be eligible for a business credit card without even knowing it.<\/p>\n

While you should aim to use your business credit card for work-related expenses, each credit card issuer has different requirements to get a small-business card.<\/p>\n

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Some issuers, such as American Express<\/a>, are very flexible. On the other hand, Chase<\/a> is generally the toughest, often requiring proof of your business,<\/a> including government employer identification number (EIN) and business checking account information.<\/p>\n

However, many small businesses<\/a> start as simple DBAs (doing business as), which denotes a business name used by a person or entity different from the person\u2019s or entity\u2019s true name.<\/p>\n

For example, let’s say you start a small eBay business and want to keep your finances separate from your personal expenses. In this case, you might consider a small-business credit card.<\/p>\n

If you\u2019re starting a small company as a sole proprietorship, you can provide your Social Security number when asked for an EIN, which will usually suffice. In most cases, you don\u2019t need any paperwork to form a sole proprietorship; you become one by simply doing business.<\/p>\n

Related: What name should I put on my business credit card application?<\/a><\/strong><\/p>\n

Business credit cards don\u2019t sit on your personal report<\/h2>\n

Business credit card applicants typically experience a two-to-five-point hit on their personal credit scores<\/a> upon applying since banks generally use your personal credit report to assess your creditworthiness. This is because these cards are still usually personally guaranteed.<\/p>\n

However, other than this initial credit inquiry, the business line of credit sits separately from your personal credit line, so your utilization ratio and other factors shouldn\u2019t affect your personal credit score.<\/p>\n

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That\u2019s good news if you put big balances on your business cards since it won\u2019t damage your personal credit score. Be careful, though, because if you default on a business credit card, the issuer can come after your personal assets since your personal credit guarantees those cards.<\/p>\n

Plus, you can apply for a business card from most issuers without affecting your 5\/24 status with Chase<\/a> since the new account won\u2019t show up on your personal credit report.<\/p>\n

Related: How a business credit card could help your personal credit scores<\/a><\/strong><\/p>\n

Keeping expenses separate<\/h2>\n

It\u2019s easy to charge all of your expenses, both personal and business, on the same credit card for convenience.<\/p>\n

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Still,\u00a0keeping your personal expenditures\u00a0separate<\/a>\u00a0from your business ones is important <\/span>\u2014 especially during tax season. Having a separate business credit card makes tracking expenses easy, and you\u2019ll pay less in accounting fees if your accountant doesn\u2019t have to sort through personal versus business expenses.<\/p>\n

Plus, it\u2019s easier to get everything straightened out if you ever get audited by the IRS.<\/p>\n

As a bonus, many business credit cards make it easy to export your transaction history to QuickBooks or other accounting software.<\/p>\n

Related: Can you pay taxes with a credit card?<\/a><\/strong><\/p>\n

Double dip on welcome bonuses<\/h2>\n

Applying for business credit cards opens you to a whole new set of welcome offers.<\/p>\n

For instance, you might already have scored the welcome bonuses on the Chase Sapphire Preferred\u00ae Card<\/a> or the Chase Sapphire Reserve\u00ae<\/a>. To keep racking up Ultimate Rewards points,<\/a> you might want to consider the Ink Business Preferred\u00ae Credit Card<\/a>, for example, which is currently offering 90,000 bonus points after spending $8,000 on purchases in the first three months from account opening.<\/p>\n

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A good place to start is to look at the cards you currently carry and see if any of them have business counterparts that might be good options for your budget and spending habits.<\/p>\n

Maximize different bonus-earning categories<\/h2>\n

While you\u2019ll find many business cards with travel or dining bonus categories that overlap with personal credit cards, you\u2019ll also find many unique categories clearly geared at businesses and not consumers.<\/p>\n

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For example, the American Express\u00ae Business Gold Card<\/a> \u2014 with an annual fee of $375 (see rates and fees<\/a>) \u2014 accrues 4 points per dollar in the two categories you spend the most in each billing cycle from the following list, on the first $150,000 in combined purchases each calendar year (then 1 point per dollar thereafter):<\/p>\n