
Getting a business credit card can make sense if you have a side hustle or an entrepreneurial venture that helps you earn some cash. However, your business may not need to be as “formal” as you think, and in fact, nearly anything can help you qualify for a credit card for your business.
Maybe you drive for Uber or Lyft on the side and get paid as an independent contractor. Perhaps you do some online freelance work, or you work as a virtual assistant (VA) for a few hours per week. Maybe you make homemade soaps and sell your product on Etsy, or you mow lawns in your neighborhood on your days off.
Any of these gigs could lead to needing a business credit card, which you can use to earn rewards while you separate personal and business spending. The best business credit cards even offer generous signup bonuses, and some offer cardholder benefits that make using them for all your of business spending a good idea.
But, how do you get approved for a business credit card? It’s easier than you think, but the following tips can help.Nearly any money-making activity can be worthy of a business card, and you don’t have to have a formal business structure of any kind. If you’re not an LLC or an S Corp, you can apply for a business credit card as a sole proprietor, which is perfectly legal.In fact, the IRS explains sole proprietors using the following definition: “A sole proprietor is someone who owns an unincorporated business by himself or herself.”
If you have a formal business structure, then you likely have an Employer Identification Number (EIN) you can use on your business card application along with your Social Security number (SSN). If you’re a sole proprietor, on the other hand, you can apply using only your SSN.Next up, you should check your credit score. This step is important since card issuers will take your personal credit into account when approving you for a business credit card. They do this because, generally speaking, you’ll be personally liable for amounts your business charges to a card regardless of whether your business is profitable or not.