Business credit cards can dramatically increase your ability to earn points and miles, often by double or more. There are several reasons for this:

1. You qualify for nearly twice as many cards, many of which offer higher welcome bonuses and stronger ongoing benefits.
2. Business cards from most banks do not appear on your personal credit report. This allows you to keep your 5/24 status in check
3. Annual fees on business cards can often be tax deductible, reducing their effective cost

It’s common to assume you are not eligible because you do not have a business in the traditional sense, and this usually leads to a few key questions.

What constitutes a “business”?

The definition is broad, and anything you might think of as a side hustle can qualify as a business.

• Babysitting
• Mowing lawns
• Buying and selling items on Ebay or Marketplace
• Holding an annual garage sale

Many business card applicants are sole proprietors running small or informal “businesses” alongside their primary jobs.

How much income has to come from that business?

The short answer is zero. When evaluating your creditworthiness, most banks consider your total income, not just your business income.

1. Banks look at both personal and business income together.
2. Applications ask for total annual income, meaning how much you earn across all sources in a year.
3. Business income does not need to be significant for entry-level business cards.

That said, some business income can help when applying for premium cards, like the Amex Business Platinum, Venture X Business, and Chase Sapphire Reserve Business. These cards tend to have higher approval standards, so starting smaller is often the smarter move.

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

No. You can apply for a business card in one of two ways.

1. Apply as a sole proprietor using your Social Security number.
2. Apply using an Employer Identification Number, or EIN, issued by the IRS.

If you are occasionally selling items from your home or running a small side hustle, applying with your SSN is common. Many people in the points and miles hobby only apply as sole proprietors and are approved without issue, especially in the beginning.

That said, getting an EIN is easy and can increase your chances of approval, especially for additional cards or premium business cards.

Will I need to file my taxes differently?

Not in a way that significantly complicates your taxes. Any income you earn should be reported to the IRS, so if you are already making money from a side hustle, you should already be reporting it.

A few things to keep in mind:

1. Reporting income provides peace of mind and helps avoid issues down the road.
2. Many people are surprised by how little tax they owe on side income.
3. You can often deduct expenses related to that income, like credit card annual fees and computers.

Even if you owe a small amount, it is often offset by the thousands of dollars in credit card bonuses and benefits from business cards.

If you are ready to move forward, these steps will give you the best chance for approval.

Best Practices for Applying

1. Get a tax ID (also known as an EIN) if you don’t already have one. The process takes only a few minutes. Do that here »
   1. This is not tax advice, so talk to your tax preparer if you have questions
2. If you’re not ready for an EIN, apply as a sole proprietor with your social security number.
3. Start with a lower level card. We generally recommend the Chase Ink Unlimited »
4. Avoid premium cards like the Amex Platinum or Chase Sapphire Reserve Business unless you have a well established business. Get personalized recommendations here »
5. Do not stress over application questions. Choose the industry that best fits your business and estimate revenue and spending as accurately as possible.
6. Be honest (with a degree of optimism) on your application

If you aren’t approved for a business card on your first attempt, call the reconsideration line once you have your reference number. Many applications are approved after a brief follow-up conversation.

Business cards are more accessible than most people realize, and they remain one of the most effective ways to accelerate your points and miles strategy.