Jul 17th, 2008

Five Reasons to Apply for a Business Credit Card as an Individual Consumer

By David Weliver

Business credit cards are the credit card industry’s best-keep secret. They feature lower APRs, better rewards, and better introductory terms than consumer cards—and anybody with good credit can get one. No business? No problem. Here are five reasons to swap your current plastic for a business card.

1. Better balance transfers

The number one reason to get a business credit card? Many feature longer 0% balance transfer offers than consumer credit cards. At the time of this article, Advanta—a leading credit card issuer for small businesses—offered a 0% balance transfer for 15 months on the no annual fee Advanta Platinum Card.

2. Better 0% introductory offers

Want to make a big, new purchase and pay it off over time—for free? Most consumer cards only feature intro APRs for six or 12 months, but some business cards offer 0% APRs for as long as 15 months.

3. Useful rewards

Credit cards marketed to consumers with excellent credit American Express Blue Cash offer decent rewards, but some business cards top them. Search business card offers for rewards programs tailored to what you’ll use the card for most (e.g. travel, gas, or office supplies).

5. Higher credit limits

The terms on business credit cards are so good because card issuers know that businesses spend more—and are better credit risks—than consumers. Therefore, the credit limits on business credit cards are typically higher than consumer cards—often between $10,000 and $35,000. The Advanta World MasterCard has no pre-set limit at all. Why would you want a higher credit limit? Obviously not to rack it up, but to improve your credit. A higher-limit card on your credit report reduces your debt utilization ratio (the percentage of available credit used) and, in turn, improves your creditworthiness and FICO score.

How to apply for a business credit card

You can apply for a business credit card as an individual by selecting “sole proprietor” as your business type and using your social security number. You don’t need a legal business, and you don’t need a business tax ID number. You do, however, need very good credit.

Compare business credit cards at our partner site, Arrive Financial.

Do you use a business credit card for personal purchases? Let us know why!

Related Posts

1. Kiva Business Card for Professionals: Get an Advanta Card Without a Business
2. For the Lowest Credit Card Interest Rates, Look to Small Banks
3. 5 Questions to Ask Yourself Before Transferring a Credit Card Balance
4. The Advanta Kiva BusinessCard: A Credit Card for the Socially-Conscious Entrepreneur
5. Amex Blue Sky vs. Discover Miles vs. Citi PremierPass

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One Response to “Five Reasons to Apply for a Business Credit Card as an Individual Consumer”

1. Emily says:

   July 17, 2008 at 4:25 pm

   This is really interesting — I’ve never heard of consumers getting business cards, though it makes sense after reading your list. But I wonder if when you’re applying, they ask questions about your business? I’ve never applied for a business card, so I’m not sure how much information they need…could be tricky, though, if they want specifics about the biz.