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Side Hustle Much? You Might Have the Wrong Credit Card

Entrepreneurial varieties who freelance and facet hustle their manner via the week seemingly have entry to a software that might assist them thrive: a enterprise bank card.

In the event you drive a rideshare half time, repeatedly resell on eBay or ebook paid pictures jobs on the facet, you could qualify for a enterprise bank card. You don’t must have a storefront, workers or an LLC.

That’s helpful data for the movers and shakers of the gig economic system as a result of bank cards aimed toward small companies differ from private playing cards. They provide extra profitable rewards and eye-popping sign-up bonuses you gained’t discover on most private playing cards.

Whereas a enterprise bank card alone gained’t decide whether or not your enterprise prospers, small-business prospects appear to love them. They’re “considerably extra happy” with their enterprise bank cards than prospects are with private bank cards, in response to a 2019 examine by J.D. Energy.

Amongst these is small-business proprietor Joe Brancatelli. He’s a publication marketing consultant and founding father of the business-travel subscription publication “Joe Despatched Me.”

He considers his enterprise bank cards amongst the instruments that assist make his enterprise go. “They assist me segregate my private and enterprise spending, which is necessary for tax and different causes,” he mentioned.

The playing cards additionally assist money circulation. “It is comparatively easy accessibility to credit score, which some enterprise of us cannot get in any other case,” he mentioned. “The identical financial institution which may flip you down for a conventional enterprise mortgage provides you with a small-business bank card.”

In fact, the secret’s to make use of the card’s credit score line strategically with out paying curiosity, he mentioned.

Qualifying as a enterprise

You do not want a enterprise credit score historical past to qualify for a enterprise bank card. In the event you interact in an exercise that earns cash with out being another person’s worker, you’re a enterprise.

Your enterprise doesn’t even must make a revenue, and you’ll say so on the software. In the event you don’t have a separate tax ID for your enterprise — many sole proprietors don’t — you should use your Social Safety quantity.

Getting accredited

You qualify for a small-business bank card primarily based in your private credit score historical past. Credit scores of 690 or above typically qualify, though issuers have their very own approval standards, which may fluctuate by sort of card.


Enterprise bank cards sometimes include larger sign-up bonuses than private playing cards. The distinction can imply a whole bunch of {dollars} in rewards worth.

Rewards on enterprise playing cards may suit your spending higher, too. For instance, enterprise bank cards may provide additional money again for spending on workplace provides, promoting and telecommunications providers. These might be extra helpful than bonus classes on a private card which may embrace groceries, streaming providers or home-improvement shops.

Enterprise playing cards sometimes include the next credit score restrict. And the charges could be tax-deductible when used for enterprise spending solely.

Amongst the largest advantages is solely having a separate card for enterprise spending. That may assist with expense monitoring, operating monetary studies and gathering tax-return data. Worker playing cards are sometimes free.


Though it’s a bank card for your enterprise, you typically have to offer a private assure. Which means if your enterprise goes stomach up, you’re personally liable to pay — even when your enterprise construction in any other case protects you from legal responsibility, as with a company or LLC. Consider it as you, personally, co-signing for the bank card.

And if you wish to construct private creditworthiness via your enterprise bank card, which may not occur. Not all enterprise bank cards report back to client credit score bureaus.

Enterprise playing cards aren’t lined by the similar federal client safety legal guidelines as private playing cards. However issuers typically voluntarily provide related protections, reminiscent of limits on charges, curiosity calculations and disclosures.

And people huge sign-up bonuses? They sometimes require extra spending on the card earlier than you may earn them.

How to decide on

Choosing a enterprise bank card is much like selecting a private card: Discover one that matches your wants and enterprise spending patterns. In the event you plan to hold a month-to-month steadiness, a card with an interest-free interval or low ongoing curiosity is extra necessary than rewards.

In the event you’ll pay in full, rewards playing cards are a sensible choice. They arrive in the similar flavors as private playing cards: money again, factors or airline miles. The very best playing cards could have annual charges, however some don’t. Enterprise journey bank cards provide perks that street warriors would respect.

In case your aim is to construct a enterprise credit score historical past, make certain your new enterprise bank card studies to the essential industrial credit score bureaus: Dun & Bradstreet, Experian and Equifax.

This text was written by NerdWallet and was initially revealed by The Related Press.

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