You Don’t Need a Formal Business to Get a Business Credit Card
Think you need an incorporated company or an office lease to qualify for a business credit card? Think again. You don’t need to run a full-fledged enterprise — even a modest side hustle or casual gig that brings in income can be enough to qualify.
While a structured business isn’t a requirement, you’ll still need to meet a few criteria. Most business credit cards are geared toward individuals with good to excellent personal credit (typically a FICO score of 690 or higher) and a reliable income stream. If you check those boxes, you can tap into the benefits of business credit cards — such as generous welcome bonuses, higher credit limits, and tools to manage spending — even without being a registered business owner.
Who Can Apply for a Business Credit Card?
Business credit cards aren’t just for CEOs or startups. If you generate income outside of traditional employment, you may be eligible. That includes freelancers, gig workers, hobby sellers, and more.
Here are some examples of activities that may qualify as a business, even if you don’t think of them that way:
- Offering pet-sitting services through Rover or independently
- Reselling clothes or furniture on Facebook Marketplace, eBay, or Poshmark
- Babysitting or tutoring
- Teaching music or language lessons
- Doing freelance writing, photography, or design
- Driving for Uber, Lyft, DoorDash, or Instacart
If you’re earning money on the side, you’re already an entrepreneur in the eyes of many credit card issuers.
Why Consider a Business Credit Card?
Business credit cards come with a number of advantages that personal cards often don’t. These can include:
- Larger sign-up bonuses
- High rewards in business-related categories (like office supplies or gas)
- Tools to track expenses and organize spending
- Free employee cards with customizable limits
Take the Capital One Spark Cash Plus, for example. It currently features a welcome bonus worth up to $2,000 and unlimited 2% cash back on every purchase — ideal for managing business or side hustle expenses.
Additionally, using a business card responsibly helps build business credit history, which can be valuable if you plan to expand your operations or apply for business loans down the road. Keeping your personal and business expenses separate also makes tax season much simpler.
How to Apply Without a Registered Business
Even if you’re not a legally registered business, applying for a business credit card is straightforward. Most issuers will ask for the following:
- Personal details: Your name, Social Security number, income, and date of birth
- Business information:
- Business name: Use your own name if you don’t have a registered business name
- Business structure: Select “sole proprietor” if you’re operating independently
- Tax ID: Use your SSN unless you have an Employer Identification Number (EIN)
- Business type and industry: Pick the category that best describes your side hustle
You’ll also be asked about business income, expenses, and how long you’ve been operating. It’s completely acceptable to put $0 in revenue if you’re just getting started — just be honest. Avoid fabricating information about income or a business name that doesn’t officially exist.
Bottom Line
You don’t need an LLC, storefront, or full-time business to access the benefits of a business credit card. If you’re earning any kind of extra income on your own and have solid credit, you’re already well on your way. The right business card can help you organize finances, earn rewards, and even lay the groundwork for a more serious business down the road.