Applying for a business card can seem daunting. There are A LOT of questions you may ask like how can I qualify for a business card? Or What if I get denied? In this post I am going to cover the nuts and bolts of applying for a business credit.
Why a business card?
First of all, our main reason for applying for a business credit card is because the sign on bonus points are often quite significant! By applying for 1-3 business cards, referring to your P2 and having them sign up, you can easily pull in hundreds of thousands of points to put towards some epic travel!
Do I even own a business?
I know it is hard to imagine being able to qualify for a business card if you don’t feel you have a legitimate money making business. But remember, the credit card companies just want your business, they are not out to evaluate your business. In fact, your application requires nothing more than the general idea of the business as well as your income, or estimated income if you have not made an income as of yet. Keep reading for ways to own a business!
If you want to have a layer of protection between you and your business you can create and LLC or S-corp. Our accountant recommend that we create a single member LLC. We live in MD so we went over to Maryland.gov to create our LLC. Once that was approved we went over to the IRS website to create our EIN (Employee Identification Number). In Maryland we will have to pay a $300 filing fee as the owners of our LLC. For us this will be worth it because we want to make this into a business. A sole proprietorship would be a slightly more cost effective way to start a small business.
The application
There are two parts of the business card application: personal info and business info. Remember, in the personal info it will ask you your household income- this includes you and your partner if you have a dual income household. The rest is pretty straightforward.
The second section is where they will ask you the structure of your business. This can be as simple as a sole proprietorship, in which case the name of your business can simply be your name and you will supply your social security number. You do not have to apply and register a business with this option. Let’s say you sell your kids’ used clothes on Facebook Marketplace- you’re a business owner! Walk your neighbor’s dog? Business owner! Share travel content on social media? Business owner! Anything at all that you can bring money into your home (or you think maybe one day could bring money in), you can turn into a business using sole proprietorship and social security number.
Once that is set up you can start applying for business cards. Simply pick the category that best applies and there you go! Finally, you will fill in your estimated monthly income. This is a complete projection, do not stress over this number!
Submit your application and sit tight, don’t worry. It is completely normal for your application to go into review. It can be anywhere from 4 days to 4 weeks, we’ve experienced both situations. Oftentimes with a personal credit card you get approval immediately, with business cards this is not often the case.
What to do if you’re denied?
And the dreaded denial, it happens to all of us, don’t take it personally! First, call the reconsideration line of that particular card. You will then inquire about reasons why it was denied. From there, sometimes you can provide the right information or clarify if there was a mistake and get approved while on the phone! Other times, you may be told there are more documents needed. Perhaps an address confirmation or a name clarification. Simply fax or scan these items over and fingers crossed that is all is needed!
Go for it!
Over all, it may feel nerve wracking to apply to these cards, but they are incredible opportunities for pulling in large amounts of points to use for free travel! Always remember to check the amount of spend you need to complete and make sure it is manageable for your household; these cards can vary greatly in what is required. Business cards are great options if you know there are certain expenses in your life coming up!
