If you are an independent contractor, self-employed or earning 1099 in income, you may not be aware that you may be eligible for a small business credit card. Getting a business credit card improves cash flow, builds business credit, and provides profitable rewards. Here are some awesome credit cards for entrepreneurs.

Advantages and disadvantages of business credit cards for a self-employed entrepreneur

Benefits:

  • Cost tracking
  • Advanced fraud protection
  • Rewards
  • Build business credit
  • Often available for beginners

Cons

  • Private loan verification is usually required; From good to excellent credit
  • Some issuers report the account to a private lender
  • Credit card law does not apply

Best Business Credit Cards for Private Entrepreneurs

Here are five great business credit card options for a self-employed person.

1. Generous 0% Introduction APR Discount: US Bank Business Triple Cash Rewards World Elite ™ MasterCard®

If you want to use your credit card for work capital or cash flow, US Bank Business Triple Cash Rewards World Elite ™ MasterCard® Provides robust introduction APR: 0% for 15 billing cycles on purchases and balance transfers.

It also has a very attractive welcome offer for new cardholders. Limited Time Offer – Get $ 500 in Cash Refund. Withdraw your account and spend only $ 4,500 on the account holder card in the first 150 days.

Refunds are also strong. Refund 3% on eligible purchases at gas stations, office supply stores, mobile phone service providers and restaurants. Get a 1% refund for all other eligible net purchases.

All these benefits are provided by the card with the metam id = “993994 ″ field =” annual fee “].

2. Flexibility for Amazon buyers – Amazon Business General American Express Card

If you regularly post yourself on Amazon, whole foods or AWS, consider it Amazon Business General American Express Card. Interesting Benefits You can choose between extra time to pay when the cash flow is tight or high. 5% return or use 90-day terms with eligible membership in US states, Amazon.com, Amazon Business, AWS and general food markets. You get a 5% refund on the first $ 120,000 for purchases each calendar year, then return 1%.

3. Expenditure management tools DVV Smart Credit Card for Business

If you are self-employed at any given time, you know that keeping track of expense reports and business expenses can be a major headache. DVV Smart Credit Card for Business Facilitates cost management by combining corporate cards with free cost management software. And yes, there are rewards: Up to 7% points depending on payment settings.. Pay fast to get great rewards.

4. Strong Refund Rewards American Express Blue Business Cash ™ Card

If you are not interested in pursuing bonus expense categories and only want a strong refund card, consider American Express Blue Business Cash ™ Card.

  • Welcome Offer: Get a $ 250 statement credit after you make $ 3,000 on purchases on your card in the first 3 months
  • Rewards Refund 2% on all eligible purchases up to $ 50,000 per calendar year, then 1%. Cash refunds will be automatically submitted to your statement.
  • Introduction APR 0% on purchases for 12 months from the date of account opening

One popular feature is flexibility. With American Express Blue Business Cash ™ Card With extended purchasing power, you have the ability to spend beyond your credit limit. Remember, the amount you can spend beyond your credit limit is unlimited. Adjusts financial resources known for your card usage, payment history, credit history, American Express and other factors. It is an annual fee $ 0.

5. Excellent travel awards Chase Sapphire Favorite Card

Of Chase Sapphire Favorite Card A personal credit card (not a business credit card) that earns high points for great travel rewards. You can get it 5X points on a trip purchased through Chase Ultimate Rewards®, 3X points on a meal and 2X points on all other travel purchases.. Get 25% value when you buy airlines, hotels, car rentals and excursions through Chase Ultimate Rewards®. For example, 100,000 points are worth $ 1,250 per trip. Pay yourself with PaySM, your points are 25% more valuable at the time of purchase when you purchase them for statement credits in selected and rotating categories. There are no foreign exchange fees.

There is also an excellent welcome offer. Here’s how Chase describes it:

Our best offer ever! Earn 100,000 bonus points after spending $ 4,000 on purchases in the first 3 months of signing up. This is $ 1,250 when purchased through Chase Ultimate Rewards®

Can I get a credit card if I am self-employed?

Most of the time the answer is yes; If you are self-employed, you can get a business credit card if you are a sole proprietor or freelance manager or a 1099 contractor. Most credit card issuers base their decision not only on the business but also on the owner’s personal credit score and all sources. (There are a few lenders who do not check personal loans and require at least a year in business and solid business income.) To qualify you generally need a good credit history.

Of course, if you are self-employed to cover personal expenses, you may want to get a personal credit card. Again, the loan decision is primarily based on your personal loan results and income from all sources, not just business.

Which credit cards are best for private employees?

Many self-employed owners rely on personal credit cards; After all, they probably already have a lot! But you may want to think about getting a business credit card. Small business card offers come from major credit card companies, including American Express, Bank of America, Chase, Discovery, Bank of America and Wells Fargo. There are many options, so you need to carefully consider how you plan to use your credit card.

If you pay your balance in full, you may be looking for benefits in the form of a cash refund or travel rewards. Enrollment bonuses and welcome offers can offer significant additional benefits during the first year. If you are looking for a refund, remember that some cards offer bonus points or extra points in certain spending categories (gas, restaurants, etc.), so make sure you have a good idea of ​​how much you plan to spend on those bonuses. Categories, or no matter how much you spend, generally hold a cash back credit card.

Points or miles are the most popular travel benefits, and may be of additional use if you are a frequent traveler, such as arriving at the airport lounge, checked luggage, priority airline passenger or others.

How to apply for a business credit card for a private entrepreneur

If you have a letter or direct commercial bank account and do not respond to a credit card offer from a bank or credit union, you can complete your credit card application online. That is a great way to apply. Answer a few questions and you will probably get a decision in minutes. You may need:

  • Your Social Security number
  • Your Federal Tax ID or Employer Identification Number (EIN)

You will need to provide some basic information about your business (legal name, legal entity type, business phone number, etc.). It is important that all of this information is available before you apply to verify your card with a commercial credit bureau, but some private entrepreneurs do not have a separate business entity and therefore the information is no different from their personal information.

How to qualify for a personal employee business credit card

Again, personal credit checks are very common and many small business card issuers want good credit or good credit. 1099 or you can include income from all sources, not just personal income. For example, if you have a day job, you may include that income in the personal income section of your application. If your spouse or partner has income and contributes to your business if necessary, you can also include that income in your personal income category. Alternatively, they may include child support or allowances or other types of income.

Other financial options for private entrepreneurs

Credit cards can be a source of short-term financial support for your business, especially a low-interest card or a 0% introductory AP. But there may be times when you need a small business loan. These options may include:

  • Credit lines
  • Time loan
  • Billing Finance or Financial Work
  • Equipment Finance

Although there are many loans to private entrepreneurs, it should be noted that some lenders do not offer loans to private investors such as LLC or S Corporation.

This article was originally written on August 30, 2021.

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