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How to Get a Business Credit Card that Won’t Affect Your Personal Credit

If you’re a business owner of any type, then you should have a business credit card. It’s a great tool to help with day to day operations, manage cash flow, and even to expand your business at some point in the future.

How To Get a Business Credit Card

If you are wondering how to get a business credit card, it’s pretty simple. Just apply online. It’s actually one of the easiest forms of business credit to qualify for. That said, you will need to have a business entity established and a federal tax ID number as well.

But beware, not all business credit cards are created equal, and most “Best Business Credit Card” lists don’t take personal credit reporting into account. For shame! 

Do Business Credit Cards Affect Your Personal Credit Score?

The best business credit cards include this awesome feature: they do not report your card information to your personal credit report. That means you can carry a huge balance (not that you should, but you could) and it won’t affect your personal credit score. Nice.

Unfortunately, most banks do not advertise their credit reporting policies as a “feature” of their business credit cards. So I’ve put together a list for you, of the bigger banks and their policies…

BANKREPORTS TO PERSONAL CREDIT?
AMEXOnly if Delinquent
BofAOnly if Delinquent
Capital OneYES (Boo)
ChaseOnly if Delinquent
CitibankNO
DiscoverYES (Bummer)
US BankNO
Wells FargoNO

Why Should You Care So Much About Your Personal Credit Score?

Basically, your credit score is the gateway to, well, everything….

Want to buy your home with a loan? Hope to lock in the best interest rates…or rent an apartment..or buy a car with a loan..or get the best credit card deals…or even the lowest cell phone rates? Credit Score!

You get the picture. And if you don’t, eventually you will. It’s as sure as death and taxes. So, obviously, you don’t want A-NY-THING messing up your credit score!

How Business Credit Cards keep your credit score looking good.
This is my credit score as of Jan 2020

That’s why a business credit card is such a great friend. It will save your precious score when you’re racking up thousands of dollars as you expand your business (or some other really good reason to carry a large balance).

Plus many cards come with pretty nice signing bonuses to boot!

My Main Criteria for the Best Business Credit Cards

1) It should NOT report to your personal credit.

2) At least 1.5% cash back (I prefer the same cash back % for everything, but perhaps the tiered version could benefit the right person)

3) No annual fee

4) A good initial reward for signing up

5) The lower the interest rate the better, but I don’t believe you should be carrying a balance for a significant period of time (on a credit card), so this is not a huge factor.

A General Point About Credit Card Rewards

Credit cards, on average, offer you 1-2% of “value” back for each dollar spent. That reward will come as either cash or points for travel or merchandise.

They often make it very complicated with all these intricate offers and formulas, but at the end of the day, even with all the “extras”, “tiers” or “travel perks” they may offer, you usually end up getting 1-2% back.

I feel, for the most part, you should just take the cash back (instead of points)…and then use it for travel if you decide to later.

Maybe for the perfectly matched user, one could do a little better. Though, I think they would have to be a higher volume user. For example, the American Express Platinum Card offers a very valuable travel rewards program if used correctly, but it comes with a $550 annual fee.

In this case, you would have to travel frequently enough to take advantage of the extra value, so you could exceed the actual cost of having the card. For these reasons, I’ve not included it on the list.

Drumroll….Here Are My Top Five Business Credit Cards for 2020…That Don’t Report to Your Personal Credit Score.

Chase Ink Business Cash

A Chase Business Card Won’t Report to Your Personal Credit

BONUS
$500 bonus cash back after you spend $3,000 on purchases in the first 3 months after account opening.

CASH BACK
Earn unlimited 1.5% Cash Back rewards on every purchase made for your business.

ANNUAL FEE
$0

INTRO APR / ONGOING APR
0% intro APR for 12 months from account opening on purchases. After that, 14.74%–20.74% variable APR.

EMPLOYEE CARDS
Employee cards at no additional cost. They let you set individual spending limits and help you earn rewards even faster.

AMOUNT OF CREDIT OFFERED (PER MY OWN EXPERIENCE)
High

American Express Blue Business Cash Card

An American Express Card doesn't report to Your Personal Credit

BONUS
None currently.

CASH BACK
Earn 2% cash back on every purchase made for your business, up to $50,000 per calendar year, then 1% cash back applies after that. 

ANNUAL FEE
$0

INTRO APR / ONGOING APR
0% intro APR for 12 months from account opening on purchases. After that, 14.74%–20.74% variable APR. 

AMOUNT OF CREDIT OFFERED (PER MY OWN EXPERIENCE)
Medium-High

Wells Fargo Business Platinum Credit Card

BONUS
Get a one-time $500 cash back bonus or 50,000 bonus points when you enroll in the Business Card Rewards Program and spend $5,000 in the first three months of account open date.

CASH BACK
Earn 1.5% cash back on every $1 spent.

ANNUAL FEE
$0

INTRO APR / ONGOING APR
0% introductory rate for first nine months. After that, you will be assigned a variable interest rate between Wells Fargo Prime + 7.99% and Wells Fargo Prime + 17.99%, depending on your personal and business credit evaluation.

AMOUNT OF CREDIT OFFERED (PER MY OWN EXPERIENCE)
Medium

Bank of America Business Advantage Cash Rewards 

A Bank of America Business Card Won’t Affect Your Personal Credit

BONUS
Get a $300 statement credit when you make at least $3,000 in net purchases within 90 days of your account opening.

CASH BACK
3% cash back on your choice of one of the following six categories: gas stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services. Automatically earn 2% cash back on dining and unlimited 1% cash back on all other purchases. You’ll earn 3% and 2% cash back on the first $50,000 in combined category/dining purchases each calendar year, 1% thereafter.

ANNUAL FEE
$0

INTRO APR / ONGOING APR
0% Introductory APR for the first 9 billing cycles following the opening of your account. After that, your APR will be 13.74% to 23.74%, based on your personal or your business’s creditworthiness when you open your account. This APR will vary with the market based on the Prime Rate.

AMOUNT OF CREDIT OFFERED (PER MY OWN EXPERIENCE)
Medium

U.S. Bank Business Cash Rewards World Elite Mastercard

A US Bank Business Card Card Won’t Affect Your Personal Credit

BONUS
Earn $200 cash back after you spend $1,000 in eligible net purchases on the Account Owner’s Card in the first 90 days. 25% Annual Bonus, based on your prior year’s Cash Rewards, up to $250. 

CASH BACK
3% cash back on eligible gas station, office supply store and cell phone/service provider net purchases. 1% cash back on all other eligible net purchases. 

ANNUAL FEE
$0

IINTRO APR / ONGOING APR
0% APR on qualifying purchases for first 9 billing cycles. After that, and for all non-qualifying purchases, you will be assigned 13.74% to 24.74% variable interest rate, based on your creditworthiness when you open your account. This APR will vary with the market based on the Prime Rate.

AMOUNT OF CREDIT OFFERED (PER MY OWN EXPERIENCE)
Unknown, as I haven’t applied lately.

Why is the Chase Ink Business Cash Credit Card My #1 Choice? 

First of all, it meets all of my requirements, including: at least 1.5% cash back, no annual fee, a good initial reward ($500), a low interest rate (0% for the first year), and it doesn’t report to your personal credit.

Secondly, although many of the other cards on my list are somewhat similar, in my experience this card offers the MOST CREDIT, which make it a superior card for any business owner. 

Finally, it also offers 0% interest for purchases up to 12 months. So, if you do need to utilize it to get your business off the ground in that 1st year, you will save a bunch of money! 3 of the other 4 cards only offer 0% for 9 months.

So there you have it! Now you just have to apply! 

If you want more information on incorporating yourself and establishing a federal tax id, check out this article… 

Independent Contractor Taxes & How to Incorporate (So You Can Pay Less Tax)

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