Five Reasons to Apply for a Business Credit Card as an Individual Consumer
July 17th, 2008 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. Advanta—a leading credit card issuer for small businesses—offers 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? Try the no annual fee Chase Business Rebate Card offering 0% for 15 months on new purchases.
3. Generous bonuses
If you don’t need a low interest rate, but want to pocket some cash with your new card, the Discover Business CashBack Card will give you $100 after your first purchase (which is interest free for 12 months, by the way).
4. Useful rewards
Consumer credit cards like the Chase Freedom and Amex Blue Cash offer decent rewards, but some business cards top them. For example, that Chase Business Rebate Card gives you 3% cash back on all purchases at restaurants, gas stations, office supplies, and home improvement stores; and 1% cash back on everything else.
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. 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!
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On Jul 17, 2008, Emily said:
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.