Tuesday, 12 May 2020

How To Get A Business Credit Card - (Step By Step)

There is a lot of costs that go into a business and business credit cards are literally what save my business and the reason why I say that is because of cash flow. Any business that starts out their first year you are going to realize that you have to put a lot of money into the market if you are trying to get into branding, products, especially if cash flow is very limited to start with. What I use were my student loans. Once I ran out of that, I had to look into another source and that was business credit cards. If you are running your business out of your checking account, whatever money you have on your check account, is the money you have to use. Say you have to put more money into the market but you are not seeing the return right then and there. You are going to get chopped out at one point especially if you don't have the money. A credit card allows you to ease that, they give you those 30 days to keep afloat in business.

What Are Business Credit Card

Business credit cards are simply credit cards geared toward business owners. The difference between them and the personal credit card is a few things. 

Business Credit Does Not Affect Your Personal Credit Score

One of the first benefits that I have to mention to you is that your business credit does not affect your personal credit score. Your business and your credit are two sides of the coin. There are two different parts to it, your business credit score might be completely different from your personal one. But your personal one is the credit score that affects your life way more than your business scored does unless you are going into more actual business loans. But the main reason why the business credit score is superior to the personal credit score is that it is not affected by a lot of limitations such as that Chase 5:24 rules, say you have four cards within 24 months if you get one more personal card you can't get another credit cards with them for two years.

If you have that four cards within that 24 months and you get a business credit card, you are not going to be affected. That does not show up on your personal credit report, so you are at four credit card right now within 24 months you can get all five of chases credit business or get as many as you want and not be affected. The business credit card is not going to be restricted by the same things that hold the personal credit score so they are different, they are separate and it is not going to be affected by that, which is one of the huge benefits of owning a business credit card. 

Sign Up Bonuses

Sign up bonuses are incredible because in reality you are paying $100 and you get 3% back that is $3 for every $100 you spend and if you transfer that over maybe you will get $5 to $6, but that is not a lot of money, you have to spend $1,000 just to get $30, it depends on what card and rewards you have, but what I am trying to say is those rewards are not enough and if you are just forcing yourself to spend money just try to get like an extra $10 to $20, it is not the best bang for your money. So what a lot of people do is focus on the signup bonuses.

With the business credit card, you are going to be getting an incredible signup bonus compared to personal cards. for example, with the Chase Sapphire Preferred, if you spend $4,000 in three months you are going to be getting 50,000 points back. However, if you spend $5,000 more just $1,000 more than you would with the Chase sapphire preferred, you are going to be getting 80,000 points compared to the 50,000 points within that same three month time.

Business Credit Limits Are High

I always tell you, don't ever carry a balance of credit cards but there are a lot of people in unique situations that we do not know about, some people may have hospital bills, some people might have to pay their tuition their books, maybe you get an accident who knows, we don't know everyone's situation so if you carry a balance with a credit card or if you are just been an idiot and you are trying to flex on some girls and you just bought some extra bottles at the club, you are stupid. But if you are a guy who is in a legitimate situation where you had to carry a balance. Business Credit card is a huge benefit to you and that is because they have such a high credit limit that you could balance transfer what you have onto a business credit card and you when you sign up for some of these business cards they are going to give you no interest, no APR for the first year, some of the first six months, some of them even up to 15 months.

A lot of people sleep on the American Express blue business plus card, there are only four American Express business cards that I know

  • Blue Business Plus

  • Platinum Business

  • Golf Business

  • Plum Business

One of those cards which are the business blue plus, you have more flexibility with paying off your balance in case that ever happens, you have no interest, no fees on balance transfers, you have a huge credit line limit, and the first 15 months that you use the American Express blue business card, you have zero on any fees. 

With the business credit cards, the best benefits that came with that was the credit line increase which shook me so good. I start with the chase freedom unlimited card I had a starting limit of $1,500 and with the chase, sapphire preferred they gave me a starting limit of $4,000 and then I had to call again and tell them to increase my limit because that time I was putting my business expenses there. What I had to do is call them and they bumped it up to $6,000 but I had to go through a lot of stress, but in the end it still a huge limit but I understand. Because it was my first time getting into the credit card game, right after that and I applied for this business card, my first limit was $10,000. 

That is like the medium that I have been seeing with my card and it is about the $10,000 limit mark, I just applied for another card which was the chase business cash card, now I have all three of the business cards for chase and with that card, I just checked today I had a $15,000 limit without asking them. And I know if call them and tell them to increase the limit they will increase the limit because they develop my personal card and I know with business they are more inclined to do that. With chase so far I put a lot of spending on business and if you don't know this, credit card companies make money every time you swipe the card or every time you punch it into online. So if you are blowing $40,000 to $50,000 in a year and giving it to chase they are making that percentage off of the $50,000 that you spend. So they are will to be more inclined to give you that credit line limit increase. I will talk about this in another article, what you should say to get a credit line limit.

Do I Need A Business To Get These Business Card?

You don't need to own a huge corporation. What you can get is a sole-proprietorship and what is that. By definition, a sole-proprietorship is the government's fancy way of saying, that person owns that business and pays for that finances and it is the one that is legally going to take on the debt or the expenses owned by whatever that business is.

What Is A Business Really?

Relating back to what I said all the way in the beginning, a business is a very vague term. 

  • If you have ever sold anything on eBay, that is a business. 
  • If you have ever driven your neighbor's dog to the dog park, that is business as long as you got paid for it. 
  • If you tutor anyone and they have paid you that is a business. 
  • If you have been an uber driver that is a business.
  • If you have written an article in school and someone paid you for that, that is a business.

First Step To Getting A Business Credit Card Is...

You go online and apply for a sole-proprietorship for free. The government has this available. There has been a little mix-up since the shutdown happen. But for the most part, you are able to do this and when you get a sole proprietorship, you will get something called an EIN number

That is your tax identification number and that is the only number you need to put into your business credit card application.

What Do I Put For The Company Address?

When it comes to e-commerce I work from my home and I know people who flip things out on eBay, they work from their home. Most people work from their homes unless you are a brick and mortar store. So if you are coming out of your crib and what you can do is put your own address as the company's address and I have been able to do that and get all my business credit cards completely fine. 


At this point, you should all understand how to get a business card, what it is, and all the differences. 

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