Many mileage junkies use business credit cards to increase the number of sign up bonus options. There are significant benefits:
- Most credit cards offer a companion credit card for small businesses. It is a completely separate card with its own credit limit and bonus.
- Business cards typically do not report to your personal credit report. So if you place your credit card debt on your business card, it won’t show on your report.
- Many business credit cards work for new companies or “start ups” as we call them.
- You probably have a business and don’t even know it. Have you ever sold anything on Ebay? If yes, you have a business and it is Ebay sales. If you have never used Ebay to sell anything, register and sell an old pair of socks, golf ball… whatever. You are now in business with certain precautions.
When you apply for a business credit card there are a couple of musts and the first being you must always tell the truth. Never lie on an application. If you have a new business with $0 in sales, that is the way you represent it. ” Time in Business”, 0 years. “Business Income”, $0. Credit card companies like to lend money to new businesses. It is their right to do so.
The name of your business is your name, nothing more nothing less. You don’t need to add “associates” or “limited” or “company”. In fact at times that addition can cause more problems than it is worth. Just your name like you have on your personal card.
Your type of Business is proprietorship or sole proprietor and your position is owner. If the application asks for “business income”, state your business income as suggested above. If it asks for gross family income, state the income of your family from all sources. Never lie, just answer the questions.
Here what may happen to your sign up bonuses. You and the missus (or mister) each sign up for a Citibank AAdvantage personal card with 25K bonus, and at the same time sign up for the Citibusiness AAdvantage card with another 25K sign up bonuses. All of a sudden you each have 50K in AA miles or a ticket to Europe. Now wait for three months then each apply for the Citibusiness Visa card with 25K bonus each and now you have 75K each and First Class Award tickets to Hawaii.
The same is true for the Starwood American Express Card and the Starwood American Express Business Card. Each offer a 10K bonus per card and now you are stuck with 40K of Starwood points between you.
Now let’s see, we each have 75K in miles for first class seats to Hawaii and 40K of SPG points which would be 5 free nights at the Sheraton Princess Kaiulani in Honolulu or better yet, use the cash and points option for 2.8 per night and $45 a nite copay and stay a while.
Always tell the truth on your applications. Your credit is one of your most important assets.
Please consider using one of the links on my blog or website for any future applications.
And questions can be sent to rick@frugaltravelguy.com
Business Card Update
A reader reminded me today that business cards from Citi can only be applied for every 90 days, not 60 days like personal cards.
