Business Credit Cards

Over the past few months, I have applied for and received a few business credit cards. They are basically the same as personal consumer cards, but they typically have your business name on the front. You don’t have to own your own company to apply for these cards, and a lot of people choose to get them just because the credit check doesn’t count against your personal credit rating.

I decided to get them for a few reasons: (1) It’s a very simple way to separate personal and professional purchases; (2) Like most personal cards, the business cards I applied for offer different perks such as 0% APR for a year, cash back, or statement credits after your first purchase (or a pre-set minimum); (3) They typically provide small-business related suites of services that you won’t find with personal cards; and (4) If you find the right cards, you get a very low interest rate loan to pay for business expenses.

Of course, if you dig yourself into debt with these cards, you’re just as hosed as you would be with personal credit cards, so watch out.

I found two of the cards through www.mymoneyblog.com, which is a good blog that deals with various matters of personal finance. It’s one of the blogs I’m going to include in my “daily reads” once I get around to putting it together. Jonathan, who maintains the blog, has done a much better job of describing the different options, their upsides, downsides, etc that I could ever hope to do, so if you're interested in an overview, check out his posting here.

The three cards I acquired and the rationale behind each:

Citi Professional Cash MasterCard: This is going to be my primary business card. When I applied, they were offering 0% APR on all purchases for a year. Now it's 0% APR on balance transfers, which is still a good deal if you're carrying a balance elsewhere or want to try this. Also, I get cash back on all my purchases, which instantly adds a couple percentage points to my profit margin (or reduces my losses). Also, I like Citi's web-based interface, and there is a branch down the street from my apartment if I ever require in-person attention.

Chase United Airlines Mileage Plus Platinum Business: As a United Mileage Plus member, this was an attractive option. The offer waives the annual fee for your first year (typically a credit card deal breaker), 25,000 miles, some free travel options, and a couple other perks. It requires $250 in purchases before you get the miles, and I believe you have to keep the account active for six months. I'll close it after I get the miles.

American Express Platinum Business Premium Cash Rebate Card: This card offered a $250 statement credit after your first purchase, but unfortunately it looks like this deal is over. You still get 5,000 points with your first purchase, which is something. I've made my purchase and am waiting for my $250. I'll cancel as soon as I get it. Here are some other options for free cash.

Here is another good source for credit card deals if you're so inclined. Remember, just because it's a business credit card doesn't mean you're not held personally responsible.