Collecting points and miles are not limited to consumer credit cards. In fact, some of the best business cards offer valuable points and miles which can be used to see the world for little more than a song. Moreover, many of these same business cards are already available to frugal travelers – if they know how to apply.
For those who have some sort of “side hustle” going, a business credit card may already be in reach. All you need is good credit, a basic acumen for business and an understanding of business credit card applications. For those considering adding a business credit card to their wallet, here is what you need to know.
Who qualifies for a business credit card?
When many of us think of holding a business credit card, the first thought that comes to mind is a giant corporation issuing cards to executives with expense accounts. Instead, business credit cards are often extended to small businesses – from one-location shops to online eBay sellers – who can demonstrate good financial responsibility and a need for a line of credit.
Businesses of all sizes can access a business credit card, along with the points and miles that come with. As a freelance writer, I personally hold the SimplyCash® Plus Business Credit Card from American Express, which offers cash back on my business expenses. I earn five percent cash back on cell phone service and office supply stores, giving me rewards on the things I’m required to purchase every month.
Of course, other cards may offer additional benefit for small businesses as well. The Chase Ink Business Preferred Credit Card offers 80,000 Ultimate Rewards points for new cardholders, which can easily been turned into travel rewards.
Am I qualified for a business credit card?
Many of us have a “side hustle,” whether we realize it or not. From driving a rideshare during off-hours, to selling items online or offering “odd jobs” to friends and neighbors, any activity that earns extra money could be considered a side business.
In most states, starting a business as a sole proprietor requires nothing more than collecting money for your services, which is all some applications need to get started. Additionally, anyone who is engaged in business as a sole proprietor can apply for an Employer Identification Number, or EIN. While optional, an EIN can signify to a bank you are serious about growing your business and help you get a step closer to receiving a business credit card.
What are the downsides of a business credit card?
While business credit cards can be a great way to earn even more points and miles, they also come with some downsides as well. For businesses without an established credit history, a credit decision may rely on a personal credit report. Those without a solid credit history may not be approved on the first try.
In addition, business credit cards come with a different set of rules than personal credit cards. In the event an individual cannot pay their card or are forced into other financial hardships, there are not as many personal protections available. Those who would apply for a business credit card would be advised to pay off the balance monthly – as with every credit card.
With careful consideration and a little knowledge, everyone may be able to access business credit cards. By understanding your credit report and how it can apply to your “side hustle,” adding even more points to your wallets may just be an application away.
What are your tips for applying for a business card? Let us know your thoughts in the comments below!
Written by Frugal Travel Guy @ http://www.frugaltravelguy.com
Written by Frugal Travel Guy @ http://www.frugaltravelguy.com