applying for business credit card

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raddoc95
Posts: 2
Joined: Wed Jul 10, 2019 8:49 am

applying for business credit card

Post by raddoc95 » Wed Jul 10, 2019 9:00 am

Longtime lurker, first time poster. I am looking for some advice on applying for a business credit card. I am trying to figure out the best course of action. I currently am a w2 employed physician and am looking for a business credit card to use for keeping track of business related expenses not reimbursed by my employer. The amounts are not large, think 2-5k per year, but useful to track. I also in the future could be doing some locums work as well which would bring me 1099 income and additional expenses. I also coach hockey during the winter and am paid $1200 with expenses my own responsibility. Should I include all this information on my application? Only stress the physician aspect? Or don't even bother I will never get approved.

Thanks in advance for your perspective.

Raddoc95

mhalley
Posts: 7146
Joined: Tue Nov 20, 2007 6:02 am

Re: applying for business credit card

Post by mhalley » Wed Jul 10, 2019 10:52 am

Clark Howard recommends just using a seperate personal cc for business expenses. He says the consumer protections for business cc are not as good.
https://clark.com/business-entrepreneur ... redit-car/
. When you use one of these cards, the lender can do what’s called ‘piercing the corporate veil.’ In plain English, that means if your business can’t pay the bill, the bank comes after you personally.

And what happens when you lose a business card or it gets stolen? The liability of a small business can be unlimited under current law. Contrast that to the fact that an individual’s liability on a stolen or lost personal card is capped at a maximum of $50.

No matter how you slice it, business cards absolutely stink for small businesses! So I have a simple workaround strategy: Use personal credit cards for your business. You can pay the bill out of your business funds, but don’t actually use any business cards. This is a surefire way to protect yourself.

alaskantraveler
Posts: 248
Joined: Wed May 11, 2016 12:26 pm

Re: applying for business credit card

Post by alaskantraveler » Wed Jul 10, 2019 10:55 am

When you apply for a business credit card as a sole proprietor you are usually asked about your total income. You put your income from your W2 on the application. The do want to know your "business income" though. Consider a Chase Business Preferred. Its got one of the best signup bonuses out there.

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dm200
Posts: 20877
Joined: Mon Feb 26, 2007 2:21 pm
Location: Washington DC area

Re: applying for business credit card

Post by dm200 » Wed Jul 10, 2019 10:58 am

Seems to me that you would get a personal credit card - dedicated to such expenses. As a W2 employee - I don't see you as a "business".

Mike Scott
Posts: 1331
Joined: Fri Jul 19, 2013 2:45 pm

Re: applying for business credit card

Post by Mike Scott » Wed Jul 10, 2019 12:09 pm

Business credit cards are pretty easy to get. You have a small business as a sole proprietor. You have revenues of $1200 per year. You have expenses of ??? You also put in your total income. You have almost 100% chance of getting approved. They often do not have all the same consumer protections that personal cards do but do you care?

Trader Joe
Posts: 826
Joined: Fri Apr 25, 2014 6:38 pm

Re: applying for business credit card

Post by Trader Joe » Wed Jul 10, 2019 7:49 pm

I highly recommend an American Express business card:

https://creditcard.americanexpress.com/ ... gLoRvD_BwE

Best of luck.

balbrec2
Posts: 201
Joined: Mon Nov 13, 2017 3:03 pm

Re: applying for business credit card

Post by balbrec2 » Wed Jul 10, 2019 8:24 pm

I recommend the chase Ink cash business card.
No annual fee. Nice benefits

Topic Author
raddoc95
Posts: 2
Joined: Wed Jul 10, 2019 8:49 am

Re: applying for business credit card

Post by raddoc95 » Wed Jul 10, 2019 9:53 pm

Thanks for the information and opinions!

Cyanide123
Posts: 105
Joined: Sun May 05, 2019 9:14 am

Re: applying for business credit card

Post by Cyanide123 » Wed Jul 10, 2019 10:39 pm

I have the chase ink for my business that I like. Chase is pretty generous with their credit limits for businesses. I had a 15k limit on my personal freedom so I thought they would hardly give me more credit limit on my business. Was shocked to get a limit of 37k.

Pretty good cash back as well.

Like others said, using a personal card for dedicated business purposes is also an option.

smectym
Posts: 414
Joined: Thu May 26, 2011 5:07 pm

Re: applying for business credit card

Post by smectym » Thu Jul 11, 2019 8:16 am

Yes, you won’t have any trouble getting approved for a business credit card: the CC companies like to issue them, precisely because such cards are exempt from certain features of the consumer finance protection regs passed post-GFC. We have Chase Ink, it works well and even though no annual fee, the rewards points are valuable.

ralph124cf
Posts: 2254
Joined: Tue Apr 01, 2014 11:41 am

Re: applying for business credit card

Post by ralph124cf » Thu Jul 11, 2019 10:11 am

Current tax law seems to preclude almost all W-2 employee business expenses from tax deductibility. This card would seem to be useful only for the hockey and possible future 1099 work.

Ralph

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