Many people don’t feel comfortable about applying for a business credit card. While the fact is that any individual can be a business as well. The business type is called a sole proprietorship. Therefore, anyone can apply for business credit cards, even if they are not part of a corporation or LLC. Just use your own name as the business name, and your Social Security Number as the Tax ID. It is fully legit and recognized by the IRS.
For most business credit cards the card itself won’t show up on your personal credit report. This means that you can open and close accounts, have a bunch of new accounts, and max out the credit lines without affecting your personal credit score. This also means you can make thousands from playing the 0% Balance Transfer game without worrying about your credit score!
Remember, if you are a sole proprietorship there is no legal distinction between you and your business anyhow. Business debts are personal debts. Personal debts are business debts.
Also, unless you want to deduct your purchases as qualified business expenses on your tax return, you really don’t need to worry about any tax issues or filing anything special with the IRS. You can simply buy things with the card and pay off the balance as you would your other credit cards. If you do want to take deductions, please consult your tax advisor.
Credit to http://www.mymoneyblog.com/
UPDATE: Here is how you can get the $ from many of the business cards you will apply for:
1) Advanta - Direct deposit to your personal checking.
2) Chase - Write included BT check with card to yourself and deposit it in your personal checking.
3) Citi - Either wait for the welcome package (2-4 weeks), or call and request a check made payable to your name and deposit it in your checking (7-10 days).
4) Bank Atlantic - Must send $ to another card/account, but it can be a personal card/account.
5) National City - Call in and have check made payable to your name and deposit it in your personal checking.
6) Discover - Call and request BT checks, write it to yourself and deposit it in your personal checking.
7) PNC - They should include one BT check with your card you can write to yourself and deposit in your personal checking.
***You can almost always call in to any card and request more blank BT checks be mailed to you (make sure you call from your home phone number). Keep in mind they do expire (ususally within about 60 days, sometimes less), but they can come in handy and reduce BT delays.
Credit to http://www.fatwallet.com/t/52/750386/
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4 comments:
This post seems very similar to this post at My Money Blog. Perhaps it would be wise to give credit?
Hi Jonathan, thank you very much for telling me that. Actually the content was from my friend's email and I thought it was originally from him. Already added credit.
are you sure about the business credit cards not affecting your credit score/report? what about hard inquiries? what about credit utilization?
Hi Brianlp518, a hard inquiry seems inevitable for Credit Card application. But business credit is hidden from your personal credit report. Therefore, your credit utilization is lower, your score stays higher, and you continue to get good mail offers even after your AoR .
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