You CAN apply for business credit cards
You don’t need to be self-employed to take advantage of business credit cards. You likely already have a “business” that qualifies you for a small business card. Do you sell anything on Ebay? Have you ever done any design/web/other consulting for friends or family? It’s ok if you small business is very small, you are still qualified for a business credit card.
As with personal cards, it is best to start with Chase. The Chase Ink Preferred (CIP) has an incredible 80,000 UR signup bonus worth $1,000 when redeemed for travel (or $1,200 if you have the CSR). However, it does fall under the 5/24 rule. Before you apply, read my Beginners Guide to make sure this is the best place for you to start and learn what you need to know about the Chase 5/24 rule.
Chase Ink Preferred
80,000 UR ($1,000 on travel)
Spend $5,000 in 3 months
Annual Fee: $95, not waived
3x UR Bonus: Travel, Shipping, Advertising, Phone, Internet
Application Link (Referral)
Another advantage
If you applied for 4 business cards in the last 2 years and no other cards, you would still be at 0/24. If you are approaching 5/24, it might be best to focus on business cards while you wait for 5/24 spots to open up.
Although Chase business cards fall under the 5/24 rule, they do not add to your 5/24 number.
Chase business credit cards do not show on your personal credit report. These cards only affect your credit report with the initial hard pull. Usage of the card does not add to your Credit Card Utilization (higher is worse) but they also do not add to your available credit (higher is better). Business cards will not influence your Age of Credit, Total Accounts or Payment History.
With CIP you earn 3x UR on Travel, Shipping, Advertising, Phone and Internet purchases and it also includes cell phone protection for all phones on the cell plan paid for with CIP. There are some nuances to this protection, but it is great to have in case of accidental damage.
Step by step: How to apply
The majority of business card applications are identical to a personal credit card application but there are a few differences. Here is how you should fill out the application for your “business” credit card.
Ready to apply? Please use my Chase Ink Preferred referral.
Fill out this application as the sole proprietor of your own company. Use your legal name as the name of the business. Business name on card should be identical.
Under “Type of Business” select “Sole Proprietor”.
Use your SSN as your tax identification number.
(Note: even if you have a real business with an EIN it’s better to apply as a sole proprietor with your SSN because you can later refer yourself and get the bonus a second time applying with your EIN).
Number of employees is likely 1.
For revenue and years in business Chase is looking for several (5) years in business and at least $1,000 in annual revenue. Even if your side hustle is selling old things on Ebay, you are likely to hit these minimum numbers.
This next part will be specific to your business. What is your side hustle? I usually go with Freelance Consulting or Web Design. Select “Professional, Scientific, Tech Services” and “Specialized Design Services”. Categories listed below with likely selections in bold.
Business Categories
- Accommodation and Food Services
- Admin/Support/Waste Mgmt/Remed Svcs
- Agriculture, Forestry, Fishing, Hunting
- Arts, Entertainment, and Recreation
- Construction
- Educational Services
- Finance and Insurance
- Health Care and Social Assistance
- Individuals
- Information
- Management of Companies and Enterprises
- Manufacturing: Apparel, Food, Textile, Tobacco
- Manufacturing: Chemicals, Minerals, Oil, Paper, Wood
- Manufacturing: Electronics, Furniture, Machinery, Metal, Transportation, Misc.
- Mining, Quarrying, Oil & Gas Extraction
- Other Services (except Public Admin)
- Professional, Scientific, Tech Services
- Public Administration
- Real Estate and Rental and Leasing
- Retail: Automotive, Clothing, Food, Gas, Health, Home Goods
- Retail: Books, Hobbies, Music, Sports, General, Nonstore Retail
- Transportation: Air, Ground, Pipeline, Rail, Water, Tourism, Support
- Transportation: Postal, Courier, Storage
- Utilities
- Wholesale Trade
Business Types (Professional, Scientific, Tech Services)
- Accounting, Tax, Bookkeeping, & Payroll
- Advertising & Public Relations Services
- Architectural & Engineering Services
- Computer Systems Design and Rel Svcs
- Legal Services
- Mgmt, Scientific & Tech Consulting Svcs
- Other Prof, Scientific, & Technical Svcs
- Scientific Research and Development Svcs
- Specialized Design Services
If your “business” is selling on Ebay, you can select “Retail: Books, Hobbies, Music, Sports, General, Nonstore Retail” and “Electronic Shopping and Mail-Order”.
Use your home address as your business address.
The rest of the application asks the same questions as a personal credit card application.
Hit Minimum Spend with CIP
Update: as of 8/16/18 Plastiq payments with CIP no longer code at 3x. ̶T̶h̶e̶ ̶b̶e̶s̶t̶ ̶o̶p̶t̶i̶o̶n̶:̶ ̶P̶a̶y̶ ̶r̶e̶n̶t̶ ̶w̶i̶t̶h̶ ̶y̶o̶u̶r̶ ̶C̶I̶P̶.̶ ̶C̶u̶r̶r̶e̶n̶t̶l̶y̶,̶ ̶r̶e̶n̶t̶ ̶p̶a̶y̶m̶e̶n̶t̶s̶ ̶t̶h̶r̶o̶u̶g̶h̶ ̶P̶l̶a̶s̶t̶i̶q̶ ̶(̶a̶n̶ ̶o̶n̶l̶i̶n̶e̶ ̶b̶i̶l̶l̶p̶a̶y̶ ̶s̶e̶r̶v̶i̶c̶e̶ ̶t̶h̶a̶t̶ ̶a̶l̶l̶o̶w̶s̶ ̶y̶o̶u̶ ̶t̶o̶ ̶p̶a̶y̶ ̶b̶i̶l̶l̶s̶ ̶w̶i̶t̶h̶ ̶c̶r̶e̶d̶i̶t̶ ̶c̶a̶r̶d̶s̶)̶ ̶c̶o̶d̶e̶s̶ ̶a̶s̶ ̶t̶r̶a̶v̶e̶l̶ ̶w̶i̶t̶h̶ ̶C̶I̶P̶.̶ ̶P̶l̶a̶s̶t̶i̶q̶ ̶c̶h̶a̶r̶g̶e̶s̶ ̶a̶ ̶2̶.̶5̶%̶ ̶f̶e̶e̶ ̶b̶u̶t̶ ̶e̶a̶r̶n̶s̶ ̶3̶%̶ ̶U̶R̶ ̶w̶i̶t̶h̶ ̶C̶I̶P̶ ̶s̶o̶ ̶y̶o̶u̶ ̶a̶r̶e̶ ̶m̶a̶k̶i̶n̶g̶ ̶a̶ ̶.̶5̶%̶ ̶p̶r̶o̶f̶i̶t̶ ̶e̶v̶e̶r̶y̶ ̶t̶i̶m̶e̶ ̶y̶o̶u̶ ̶p̶a̶y̶ ̶r̶e̶n̶t̶.̶ You can also get $500 fee free with my referral link.
V̵e̵n̵m̵o̵ ̵a̵l̵s̵o̵ ̵c̵o̵d̵e̵s̵ ̵a̵t̵ ̵3̵x̵ ̵o̵n̵ ̵C̵I̵P̵ ̵b̵u̵t̵ ̵c̵h̵a̵r̵g̵e̵s̵ ̵a̵ ̵3̵%̵ ̵c̵r̵e̵d̵i̵t̵ ̵c̵a̵r̵d̵ ̵f̵e̵e̵.̵ ̵O̵n̵l̵y̵ ̵u̵s̵e̵ ̵i̵f̵ ̵y̵o̵u̵ ̵h̵a̵v̵e̵ ̵a̵ ̵f̵r̵i̵e̵n̵d̵ ̵y̵o̵u̵ ̵t̵r̵u̵s̵t̵ ̵t̵o̵ ̵p̵a̵y̵ ̵y̵o̵u̵ ̵b̵a̵c̵k̵.̵ ̵(̵D̵o̵ ̵n̵o̵t̵ ̵j̵u̵s̵t̵ ̵v̵e̵n̵m̵o̵ ̵t̵h̵e̵ ̵m̵o̵n̵e̵y̵ ̵b̵a̵c̵k̵!̵ ̵Y̵o̵u̵ ̵r̵u̵n̵ ̵t̵h̵e̵ ̵r̵i̵s̵k̵ ̵o̵f̵ ̵V̵e̵n̵m̵o̵ ̵s̵h̵u̵t̵t̵i̵n̵g̵ ̵y̵o̵u̵ ̵d̵o̵w̵n̵)̵.̵
Open a new bank account and fund it with your CIP. Chase cards code this funding as a purchase. Often you can get a bonus for opening a new bank account as well. Complete guide with a $50 referral bonus here.
One year out
When your card anniversary comes and your second annual fee posts (not before) call Chase and ask for a retention offer. Your annual fee will be refunded if you call within one month of when the fee posts. Calling before the fee posts means you will not get a retention offer. If you do not get a retention offer, or it isn’t valuable enough, do not cancel the card. You can product change any of these cards to a fee free version. CIP can become Ink Cash (5x UR on Internet/phone bill and office supplies).
