How To Qualify For A Business Card

April 24th, 2020

Simply stated, business cards increase your ability to earn points by nearly double. Two reasons for this:

1. You qualify for nearly twice as many cards (often with higher bonuses and better benefits).
2. Business cards from most banks don’t count on your personal credit report. That means you won't run afoul of bank rules when you alter go to apply for personal cards (such as 5/24).
   1. And your annual fees can be tax deductible

So that begs a number of questions

What constitutes a “business”?

The definition is pretty broad. Most “side jobs” are a business: babysitting, mowing lawns, buying and selling items on Ebay -- even running an annual garage sale.

How much income has to come from that business?

1. The short answer is zero. When considering you for “credit worthiness,” most banks consider both your normal income and business income.
2. The longer answer is some income is probably needed for the more selective of the business cards (Amex Platinum and Chase Ink Preferred)

Don’t I need a tax ID for my business?

No, you can get approved without a separate tax ID. However, getting one only takes a few minutes and can greatly increase your chances at approval

Won’t I need to file my taxes differently?

1. This isn’t tax advice, but... Any income should get reported to the IRS. Doing so will give you peace of mind
2. You’ll often be surprised how little (if any) taxes are owed on your side income. You can subtract expenses related to that income (credit card annual fees, a computer, etc)
3. Even if you owe a little, it can open your world to thousands of dollars in credit card bonuses and benefits

Ok, so let’s say you decide you want to go for a business card.

Here are the steps that give you the best chance for approval:

1. Get a tax ID if you don’t already have one. It takes about 3 minutes here »
   1. This is not tax advice, talk to your tax preparer about any questions or concerns
2. Find the business card to start with -- we generally recommend the Chase Ink Unlimited ». Don’t start with Amex Platinum or Chase Ink Preferred unless you have a well established business. Get your personalized recommendations here »
3. Be honest (with a degree of optimism) on your application
4. If you aren’t approved for a business card on your first attempt, call the reconsideration line once you have your reference number