You don't need a company with multiple employees to qualify for a business credit card - even cyber jugs can count on Uber to be driving.

You don't need a company with multiple employees to qualify for a business credit card - even cyber jugs can count on Uber to be driving.

You may be surprised to hear this, but it is entirely possible that you are eligible for a business credit card. You might think, "But I have no business." And you traditionally can't. However, if you are conducting business activities - even on a smaller scale - you are likely to be approved for a business card. And if so, it makes no sense to sign up and use a business credit card to keep your costs separate and your purchases maximized.

Keep in mind that we are paying close attention to the rewards and reinforcements that make these credit cards a lot of options, not things like interest rates and late fees, which will be much higher than the cost of any place or mail. ۔ Paying your balance every month, making timely payments, and spending only what you can afford, is a financial discipline to use when using credit cards.

Are you eligible for a business credit card?

If you get 1099 instead of a W-2 for your work, such as driving for Uber and Lyft or doing part-time freelance, you are doing business activities that can qualify you for a business card.

However, conducting business activities is not limited to only those who receive 1099. Owning a rental property? Sell   Goods on eBay or Etsy? These activities generate taxable income and are also business activities, which is a good reason to keep your financial affairs separate from business banking services such as credit cards.

Don't forget the non-profit

There are many small non-profit organizations that make money, from youth softball teams to bowling leagues to flower clubs. Many of them are run informally, but business banking services including credit cards can be used. You don't even have to register with your nonprofit federally. Many states have low cost, low overhead ways to register a nonprofit organization, and this is enough to establish a business banking identity.

Establish a tax ID

The basis for obtaining a business credit card is setting a separate tax ID for your business activity. Fortunately, you don't have to do anything complicated to do this, such as setting up a Delaware Sea Corporation. Instead, all you need is a free tax identification number called "EIN" from the IRS. You can sign up for EIN on the IRS website for free.

If you employ people, or if you issue 1099 to other people, EIN is required to submit payroll tax. You can never do this, but banks track and manage your social security number as well as business accounts using this number.

To apply for a business credit card you will usually need an EIN if you have a more regular business, but if you are a sole proprietor - this means you have the option to sell items online. Gig is - You can apply for a business card using only your Social Security.

Don't worry too much about income needs

If you have a single rental property or a small business such as selling goods on Etsy, this may not generate a ton of revenue. That's right - banks evaluate your credit risk based on the total picture of your income and assets, because you will personally guarantee a business credit card (and at this point, consider carefully if any And also, it's a good idea to do business activity).

I have a rental property that earns $ 6,000 a year, and that was enough to qualify for a business credit card because the bank assessed my risk based on my personal income and guarantees. ۔

Signing up for a Business Credit Card vs. Consumer Card

Business credit cards often have many incentives to sign up, but they can also be harder to obtain than personal credit cards.

When you sign up for a business credit card, you are dealing with the bank's Commercial Banking Division. They work differently, and with many banks the process is more involved and it takes longer to get approved for a personal credit card.

It is not uncommon for banks to ask for additional documents, and may also require personal in-person branch visits. Banks take more risk with commercial loans than personal loans, so they'll want to know you and the business activity that precedes you approving an account.

 Business credit cards do not affect your personal credit report. Instead, banks typically report to Dunn and Bradstreet, who work as a business credit bureau. This means that business credit card costs will not help you to make personal credit (because these products are not intended to be used for personal expenses).

It also means that if your business lags behind in payments, it won't show your personal reputation - as long as the business

Business cards are for business expenses

Whatever you spend on your business credit card has to do with business - for tax reasons and to comply with bank rules. That being said, many of the expenses you are personally making today can be more properly categorized as business expenses.

For example, if you want to drive for Uber, many costs related to automotive, such as gasoline, insurance, and repairs, may be considered business expenses. Talk to your tax advisor on where to find the costs for your business.

Another thing to keep in mind is that when you withdraw money from a business, it does not have to be a check. Businesses can pay you an equivalent cash value, such as gift cards purchased from a business credit card.

Top Business Credit Cards

So, you've read this article, and now you're convinced it's worth opening a business credit card to separate your expenses and maximize your rewards. If you think you are eligible for a business card and just want to find the best one for you, here are a few top things to consider. You can find more in our guide to the best small business credit cards available.

Cap Capital One Sparkles For Business - This card is one of the easiest business rewards cards out there. It offers 2x miles per purchase (and 5x miles on hotels and rental cars booked through Capital One Travel), and you can opt to purchase miles on your statement through the Purchase Option feature, or Can transfer to more than 10 airlines partners. General Chat Chat Lounge In addition, you can currently earn up to 200,000 miles as a new card holder. Earn 50,000 bonus miles when you spend 5,000 in the first three months, and earn 150,000 miles when you spend six 50,000 in the first six months. Spark Miles has an annual annual fee of 95, which was waived the first year.

American Express Business Platinum Card - This is a very premium business credit card, which has an annual fee of $ 595, but if you are looking to use its luxury travel facilities. If you can put it, it will be beneficial. You get access to the Centurion Lounge with access to several other airport lounges, and when you use PayPal points for airplane bookings via Amex you get 35 of your Amex points back. Let's go The Business Platinum Card is currently offering a welcome bonus of up to 100,000 points. You get 50,000 points after spending $ 10,000 in the first three months, plus you get 50,000 points after spending $ 15,000 extra in the first three months.

Ink Business Favorite Preferred Credit Card - This card stands for a huge signup bonus - 80,000 Chase Points when you spend $ 5000 in the first three months - and strong bonus categories. You'll get 3x points on the first $ 150,000 you spend on travel, and select the account category for each account's birthday (then 1x), and the Chase 

Ultimate Rewards are the most valuable points in the game. There is a $ 95 annual fee.American Express's Blue Business ® Plus Credit Card. If you want to keep things simple, Blue Business Plus is another great option. First you get 2x points for every 50,000 you spend, every year, then 1x. There's no annual fee, so it's a great way to get bonus rewards on your spending while keeping the costs down if you don't need a lot of extras.

Ink Business Unlimited Credit Cards. Ink Business Unlimited offers 1.5% cash back on your business expenses, with no downside to how much you can earn. If you have an item card that receives Ultimate Reward Points, such as Ink Business Priority Cards, you can convert your cashback rewards to Item Points that you can transfer to travel partners like Heat and United.

Business credit cards aren't an easy slam dunk, but they can get more than you think. Given that, why not double up on the welcome bonus? When you're exposed to first grade in award bookings with card points like Business Platinum, the result will be over.