Why Business Cards Are Better
Business credit cards offer higher welcome bonuses than personal cards and don't count toward Chase's 5/24 rule (with one exception). This makes them essential for travel hackers.
Compare these Chase card offers:
- Chase Sapphire Preferred (personal): 75,000 points after $4,000 spend
- Chase Ink Business Preferred (business): 100,000 points after $15,000 spend
The business card offers 25,000 more points for $11,000 more spend. That's 2.27 points per dollar of incremental spend—much better than the 1x you'd earn on a regular card. And because it's a business card, it doesn't add to your 5/24 count, preserving your eligibility for future personal cards.
Do You Need a Real Business?
No. You only need to be a sole proprietor, which anyone with any income-generating activity qualifies as. According to the IRS definition, a sole proprietorship is an unincorporated business owned by one person.
Examples of activities that qualify:
- Selling items on eBay, Etsy, Poshmark, or Facebook Marketplace
- Freelancing or consulting (writing, design, tutoring, coaching)
- Driving for Uber, Lyft, or delivering for DoorDash
- Renting out a room on Airbnb
- Photography, crafts, or creative work sold online or locally
- Any side gig or hobby that generates occasional revenue
You don't need an LLC, EIN, business license, or formal business structure. You can use your Social Security Number (SSN) as your Tax ID.
How to Apply for a Business Card
Business card applications ask for:
- Business name: Can be "FirstName LastName" if you're a sole proprietor. Or use a trade name like "Smith Consulting."
- Business structure: Select "Sole Proprietorship"
- Tax ID: Use your SSN (select "SSN" not "EIN" unless you have a formal EIN)
- Business revenue: Estimate annual revenue from your business activity. If you sell $1,500 worth of items on eBay per year, enter $1,500. Be honest but don't understate—issuers want to see you can afford to use the card.
- Years in business: If you've been doing the activity for 6 months, enter 0 years or 1 year. If you're just starting, enter 0 or 1.
Example application:
- Business name: Jane Smith
- Structure: Sole Proprietorship
- Tax ID type: SSN
- Tax ID: Your SSN
- Annual revenue: $3,000
- Years in business: 1
Issuers rarely verify sole proprietor businesses unless revenue is very high or the application is flagged. Be truthful, but don't worry about having a formal business.
Which Business Cards Are Best?
The best business cards for travel hackers:
Chase Ink Business Preferred
100,000 Ultimate Rewards points after $15,000 spend in 3 months. Earns 3x on travel, shipping, internet/cable/phone, and advertising. $95 annual fee. Points transfer 1:1 to Chase partners (United, Southwest, Hyatt). Does not count toward 5/24.
Chase Ink Business Cash
$750 cash back after $6,000 spend in 3 months. No annual fee. 5% cash back on office supplies, internet/cable/phone (up to $25,000 per year), and 2% on gas stations/restaurants (up to $25,000 per year). Good starter business card if you don't want to pay a fee.
American Express Business Platinum
150,000-175,000 Membership Rewards points after $15,000 spend in 3 months (offer varies). $695 annual fee. Best for high spenders who can use the benefits (airport lounge access, $200 airline credit, $200 Dell credit, $150 Adobe credit). Points transfer 1:1 to 17 airline partners.
Capital One Spark Miles (Caution)
75,000 miles after $15,000 spend in 3 months. $95 annual fee. Capital One business cards report to personal credit bureaus, so they DO count toward Chase 5/24. Only get this after you're done with Chase cards.
Finding Targeted Offers
Targeted offers are higher welcome bonuses sent to specific customers. Issuers send these via email, direct mail, or make them available when you log in to existing accounts.
Example: The public Chase Ink Business Preferred offer is 100,000 points. A targeted mailer might offer 120,000 points for the same $15,000 spend, or 100,000 points for $8,000 spend.
How to Find Targeted Offers
- Check CardMatch: Visit CardMatch and enter your info. It shows personalized offers based on your credit profile. Not all offers are better than public offers, so compare before applying.
- Log in to issuer websites: Chase, Amex, and Citi show targeted offers when you log in to existing accounts. Check the "Offers for You" or "Pre-Qualified Offers" section.
- Check your mail: Issuers send physical mailers with promo codes. These often have better terms (higher bonuses, lower spend, waived 5/24 for some Chase mailers). Don't throw away credit card mail without checking.
- Amex pre-qualified page: Visit Amex's pre-qualification page to see if you're targeted for higher bonuses or lifetime language exemptions.
- Reddit and forums: Check r/churning or FlyerTalk for current public vs targeted offer comparisons. Users post when they find elevated offers.
Should You Wait for a Better Offer?
It depends. If the current public offer is historically strong and you need the points now, apply. If the current offer is weak and elevated offers appear regularly, wait 1-3 months.
Example: Chase Sapphire Preferred regularly cycles between 60,000-point and 75,000-point public offers. If it's at 60,000, wait for 75,000 unless you have an urgent travel goal. If it's at 75,000, apply—that's the top-tier public offer.
Do Business Cards Affect Your Credit Score?
Mostly no, with exceptions:
- Hard pull: The application causes a hard inquiry on your personal credit report (5-10 point temporary drop)
- The account itself: Most business cards don't report to personal credit bureaus unless you miss payments. Chase, Amex, Citi, and Bank of America business cards don't report positive payment history to personal credit.
- Capital One exception: Capital One business cards DO report to personal credit, so they appear on your credit report and count toward 5/24
Because most business cards don't report, they don't increase your total available credit or lower your utilization ratio on your personal credit report. This is why they're less visible to Chase when calculating 5/24.
How Many Business Cards Can You Have?
Issuers have the same velocity rules for business cards as personal cards:
- Chase: 1/30 rule applies (wait 30 days between Chase business card applications). 5/24 rule still applies to your eligibility (you must be under 5/24 to get approved for a Chase business card, even though the business card itself won't count toward 5/24).
- Amex: 2/90 rule applies to business credit cards. You can have many Amex business charge cards (Business Platinum, Business Gold) without limits.
- Citi: 1/8 and 2/65 rules apply
Many experienced travel hackers hold 5-10+ business cards across different issuers. Stagger applications 3-6 months apart to avoid velocity denials.
Should You Get Business or Personal Cards First?
It depends on your 5/24 status:
If under 5/24: Get personal Chase cards first (Sapphire Preferred, Sapphire Reserve, United, Southwest, Hyatt). Once you've maxed out your 5/24 slots, get Chase business cards. Since business cards don't count toward 5/24, you can still get them after hitting 5/24.
If already over 5/24: Focus on business cards from Chase, Amex, and Citi. You're locked out of Chase personal cards but can still get Chase business cards.
See Lesson 17 for a complete card application order strategy.
What If You're Denied for a Business Card?
Call reconsideration and explain your business. Business card recon calls require more explanation than personal cards.
Recon script for business cards:
"I applied for the Chase Ink Business Preferred and received a denial. I'd like to request reconsideration. I run a sole proprietorship doing [activity]. I've been doing this for [X] years and generate about $[amount] per year in revenue. I'd like to use the card to separate my business expenses from personal spending and earn rewards on business purchases."
Be prepared to answer questions about your business structure, revenue, and how you'll use the card. If you're a legitimate sole proprietor, you'll usually get approved. If you have no business activity at all, reconsideration won't work.
Common Business Card Myths
- Myth: "You need an LLC or EIN." False. Sole proprietors use SSN.
- Myth: "You need formal business registration." False. No state filing required for sole proprietorships.
- Myth: "Issuers will audit your business." Rare. Issuers verify only if application is flagged or revenue is very high.
- Myth: "Business cards have higher interest rates." False. APRs are similar to personal cards. (But you should pay in full anyway.)
Next Steps
Now you know how business cards work and where to find better offers. The next lesson covers ways to earn beyond welcome bonuses: portals, dining programs, and referral bonuses.
Move to Lesson 9: Stack Earning (Portals, Dining & Referrals).