Tag: EIN

The case for business credit cards

The case for business credit cards

While most consumers think of credit cards for personal use only, many banks offer credit cards to business. By double-dipping into both personal and business card offerings, you will find miles and points come a lot faster than personal card alone, not to mention some banks offer attractive perks to business cards only. More importantly, business card applications do not appear on personal credit reports, making it convenient to circumvent limitations imposed by banks such as Chase’s five cards per 24 months, or “5/24” rule.

Do you need to have a fully established business in order to apply for business credit card? Not really. If you freelance, do contract work, or sell items at garage sale or online at eBay or Craigslist, you are engaging in for-profit business and qualify for business credit cards to cover business expenses.

When you apply for business cards, you are not required to provide Employer Identification Number or tax ID. The business name can be something as simple as Smith Family Business. Of course, if your business is taking off, it’s a good idea to incorporate or organize legally anyway and to apply for an EIN. Again, as far as application is concerned, an EIN is not required.

Of course, for small business, credit is secured by owners personally. You have to provide your own social security number on the application.

Are you interested in applying for a business credit card? I will review business card offerings in the future.