Friday, May 3rd, 2013, 3:05 pm
Business credit cards represent an excellent opportunity for mileage junkies. They carry great signup bonuses and fantastic benefits.
If you just sell items on eBay or Amazon you can get a business card so that you’ll be able to put business expenses on a dedicated card. You don’t need to be registered as a business, when asked for the business name you can name it by just using your own name and add Sole Proprietorship (Joe Smith Sole Proprietorship). Then just use your social security number when you are asked for your Tax ID number.
You can even get a business card if you are just thinking of opening a business and want a card to start purchasing items for a business. People have gotten approved even without any business revenue.
The really great thing about business cards from banks like American Express and Chase is that they don’t report your spending on your personal credit report.
On personal cards if you spend money on your card your credit score will be hurt even if you pay your bill on time. A whopping 30% of your credit score is based on credit utilization. You can pay off your card before your statement is generated to avoid that, but that takes a lot of effort and laying out money well before you have to. Additionally it’s good to have the statement close with a few dollars to show the card is active and being paid every month.
On a business card it’s just not reported, so you can wait until the money is due and even max out your line without it having a negative effect on your score. Plus if you close a business card it won’t ever have an effect on your score.
Get rejected for a business card? It’s no big deal just call Chase Business Recon at 800-453-9719 or AMEX Recon at 866-314-0237. You can shift lines or close personal cards to have a business card approved. You can also send a secure message to try to get approved as well.
So which business cards do I personally carry? These are some of my favorites:
–Chase Ink Bold, and Chase Ink Plus
These are my favorite business cards. I’ve gotten both approved with one call to Reconsideration. The Bold card is a charge card with a flexible spending line that must be paid in full while the Plus card is a credit card that you can pay over time.
They give 50,000 bonus Ultimate Rewards points for spending $5,000 which is awesome. Plus you get 5 points per dollar on cable, telecom, and office supply stores on up to $50,000 in annual spending. And 2 points per dollar on gas and dining.
-Upgrading at your local carrier’s store to an iPhone or Galaxy S4? 5 points per dollar.
-Buying gift cards for gas? 5 points per dollar plus you’ll pay the lower cash rates at the pump.
-Buying gift cards for Amazon, Gap, Groupon, Nordstrom, Southwest Airlines, TJMaxx, or hundreds of other places? 5 points per dollar.
-Buying Visa or MC gift cards to fund Bluebird or use to pay credit card bills? 5 points per dollar.
Those points all add up quickly. Plus they can be transferred to extremely valuable currencies like United, Hyatt, Korean, BA, and more.
This card also gives 2 free lounge visits worldwide via Lounge Club. Even authorized user cards which are free qualify for 2 free annual lounge visits!
Plus there are no foreign exchange fees. The fee is waived for a year and is then $95.
You earn triple points on airfare and double points for gas stations, shipping, and for advertising.
The fee is waived for a year and is then $175.
–The Business Platinum Card® from American Express OPEN
For a limited time this card is also offering 25,000 bonus Membership Rewards points for spending $5,000.
Several DDF members have reported being able to apply for this card together with the Gold card and Starwood card and earn the bonus on all 3.
The benefits this card comes with are numerous
-You can get back $400 from airline fee credits (or airline gift cards in $100 increments) in your first card membership year. That’s $200 in 2013 and another $200 in 2014. See this DDF Wiki for more info on that benefit.
-It also comes with a $100 global entry expedited customs (5 year membership) refund.
-Platinum card airline club access (American, Delta, and USAirways) for you and your entire family or 2 guests. It also works at the Airspace lounge in Baltimore, Cleveland, and the one opening this month in Jetblue’s JFK terminal. Airspace gives you and your guests free gift cards upon entry to buy premium drinks or meals in the lounge.
-Priority pass worldwide unlimited lounge membership
-Starwood gold elite status for 250 points back on all stays (even points stays) or free wifi.
-Car rental perks at Avis, Hertz, and National.
-Lost item and purchase protection up to $10,000/item.
-Regus Office Club Membership with worldwide locations.
-No foreign exchange fees.
There is a $450 annual fee for as long as you keep it at the Platinum level though you can always downgrade it if you so desire.
-Starwood Preferred Guest® Business Credit Card from American Express
This card gives 10K bonus Starpoints for spending $1 and 15K additional bonus Starpoints for spending $5,000 in 6 months.
Starpoints are great for hotel stays (with redemption methods like Cash and points or 5th night free to stretch your points) and for the 25% bonus you get when transferring points to dozens of different airlines including valuable ones like American (which lets you book El Al flights without fuel surcharges), Emirates, JAL, LAN, and USAirways that don’t participate with Membership Rewards or Ultimate Rewards. 20K Starpoints transfers into 25K with most airlines but 20K Starpoints becomes 50K LAN for example where you can book British Airways flights without fuel surcharges.
There’s no annual fee the first year and it’s just $65 thereafter.
Authorized user cards are free and in every November this decade on Small Business Saturday each one of those AU cards has gotten a $25 credit to spend at any small business!
With all AMEX business cards you also get Open Savings benefits which means cash back on top of points at places like Hyatt, Hertz, HP, Microsoft, Fedex, OfficeMax.com, Barnes & Noble, and more.
–Chase Ink Cash
With this card you’ll earn 20K bonus Ultimate Rewards points for spending $3,000.
You also earn 5 points per dollar in the same categories as the Ink Bold/Plus card but that’s capped at $25,000 per year. It also earns 2 points per dollar on hotels and dining.
This card also offers 6 months of 0% APR.
You do need an Ink Bold/Plus card or a Sapphire Preferred to transfer these points to airlines/hotels.
-United Explorer Business card.
From the United Explorer consumer card you can click on “Are you a business owner?” in the top-right to access this card.
This card offers 30,000 miles for spending $1,000 though I was able to get matched to 50,000 plus $50 cash back via Secure Message. I was able to get this card and 2 Ink cards in a 3BM.
This card offers a free checked bag, expanded saver and last seat standard award availability, and 2 free United lounge passes per year.
You also earn 2 miles per dollar on United tickets and at restaurants, gas stations, and office supply stores.