Business Cards and How to Apply

Many people may be turned away from a business credit card solely because of false assumptions. It is common to believe that you can’t apply for a business credit card because you don’t own a large business, or don’t have employees, or work from home. However, if you follow along, I’ll show you how you can qualify to apply for a business credit card and hopefully secure an approval.

Table of Contents:

• Common False Assumptions

• Examples of Businesses

• What About Proof of Business Income

• How I Apply For Business Cards (Important Part)

• Things to Note

• Business Card Recommendations

Common False Assumption

You need an established business

• You need a business checking account

• You need a Tax ID or EIN

• You need income history from your business

The fact of the matter is that almost everyone qualifies to apply for a business credit card as a sole proprietor. A sole proprietor is an unincorporated business run by one owner whose business and self are seen as the same. There are no requirements of a business checking account or even a Tax ID/EIN to apply for a business card as a sole proprietor. Instead, all you need to provide is your social security number where it asks for Tax ID or EIN within the business card application.

Examples of Businesses

Here are just some common examples of things that can count as a sole proprietor business. Really, almost anything can fit as a “business”. 

• Selling baked goods from your house

• Ridesharing driver

• Food delivery driver

• Dog walking

• House sitter

• Babysitter

• Side hustles

• Pool/House cleaner

• Lawn and yard maintenance

• Reselling goods

• Ebay sales

• Personal Trainer

• Tutor

• Coaching

What About Proof of Business Income?

There’s no right or wrong number here as long as you’re being truthful. You can technically report a business income of $0 on your application and still be approved. When I started selling things online, I technically had a business but had no income to report and this did not bar me from applying. It may limit how much credit banks will lend you though. However, you should always provide accurate information on these applications to the best of your knowledge. I do NOT suggest falsifying information on the application because although rare, banks have the right to verify the information. If you provide false information, banks and credit card issuers can and will shut all of your accounts down.

How I Apply For Business Cards as a Sole Proprietor (Important Section)

These following categories I chose to highlight are crucial to increasing your chances of an approval for a business credit card. I chose these specific examples as they are where people usually mess up and it causes a delay or even a denial of the application. Again, provide as accurate of information as possible. The following will be taken directly from a business card application from a specific bank but should be similar across all business card applications.

Business Information Section

• Name of Business: Legal first and last name only. Example: John Smith

  • Do NOT put middle name, initial, LLC, Corp, or anything else

• Desired Business Name On Card: Legal first and last name only

• Doing Business As (DBA): If possible, put “No”. If it requires an input, put your legal first and last name only. 

• Legal Business Structure: Sole Proprietorship 

• Authorizing Officer Title: Owner (Very important)

• Business Description/Category: Choose what best fits your business

• Subcategories: Choose what best fits your business

• Tax ID/EIN: Enter your social security number (SSN)

• Business Address: Your home address

• Number of Employees: Some applications will say to put “0” if you’re the only employee

  • If it doesn’t specify this, you can put “1”

Personal Information Section

Enter all the information here as accurately as possible. For personal income, if you’re married, you can enter your household income from yourself and your partner. You should not count household income on the application if you’re not legally married.

Things to Note

• In general, business cards do not show up on your credit report. However, a hard inquiry usually does show up on your personal report when you apply

• General bank rules such as Chase 2/30, 5/24, and American Express card limits do apply still

• For Chase business cards, you still need to be under 5/24 to apply

  • Chase business cards do not count towards your 5/24 status. This means if you’re at 4/24, apply for and get approved for a business card, you’ll still be at 4/24

  • Other personal credit cards DO add to your 5/24 status even though only Chase uses it to evaluate an approval or a denial

Business Cards We Recommend