How to Qualify for a Business Credit Card Even When It’s Just a Side Hustle
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If you’ve been exploring ways to maximize your travel rewards, you might have heard about the benefits of business credit cards. But what if your “business” is just a side hustle, like selling items on Facebook Marketplace? Can you still qualify for a business credit card? The answer is yes! Even if you’re just selling a few items online or offering freelance services on the side, you can still apply for a business card and enjoy the rewards that come with it. Here’s a step-by-step guide to help you navigate the application process, even if your business is small or just getting started—plus, why you don’t need an EIN to apply.
Why Consider a Business Credit Card?
Before we dive into the application process, let’s talk about why a business credit card might be a great fit for you, especially if you’re a mom running a side hustle:
Maximize Rewards: Business cards often come with higher rewards rates on categories like office supplies, advertising, and shipping. Plus, many offer large sign-up bonuses that can significantly boost your points and miles balance, making those family vacations even more affordable.
Separate Personal and Business Expenses: Even if your business is small, having a separate credit card for business expenses can help you stay organized come tax time.
Build Business Credit: Using a business credit card responsibly can help you build a credit history for your business, which could open up more opportunities down the road.
Step-by-Step Guide to Applying for a Business Credit Card Without an EIN
Even if your business is just a side hustle, like selling on Facebook Marketplace, the application process for a business credit card is straightforward. Here’s how to do it, including how to apply without an EIN:
Authorizing Officer: Owner
When filling out the application, you’ll likely be asked who the authorizing officer is. Since you own your side hustle, you’ll put yourself down as the owner.
Total Gross Annual Income: Your Household Income
Some people hesitate to apply for a business card because they’re unsure about what income to report. Here’s the good news: You can include your total household income. This means adding together what you and your spouse bring in each year.
Legal Business Structure: Sole Proprietorship
For most side hustles, especially if you haven’t formally incorporated your business, you’ll select sole proprietorship as your legal business structure.
Business Legal Name: Your Legal Name
Since you’re a sole proprietor, your business’s legal name is simply your own legal name.
DBA: No
DBA stands for "Doing Business As." If you don’t operate under a different name, you can simply select No for this option.
Tax ID Type: SSN
Here’s where it gets even easier: As a sole proprietor, you can use your Social Security Number (SSN) as your tax ID. You don’t need an Employer Identification Number (EIN) unless you have employees. This is a big plus for side hustlers who haven’t set up a formal business structure yet.
Business Established: When You First Sold Something
For the business established date, you can use the date when you first sold something or officially started your side hustle. Whether you sold your first item on Facebook Marketplace or started freelancing, that’s your business start date.
Annual Business Revenue: Estimate Your Earnings
Estimate how much you think your side hustle will make in one year. It’s okay to use a reasonable estimate here, especially if you’re just getting started.
Business Category: Choose the Closest Fit
Choose the business category that best describes what you do. For example, if you sell used items on Facebook Marketplace, you might select Retail. There’s usually a drop-down menu with several options, so pick the one that’s closest to your side hustle.
Business Type: Merchandise Stores
For business type, select Merchandise Stores if you’re selling physical products.
Business Subtype: Used Merchandise Retailers
If you’re reselling items, Used Merchandise Retailers would be an appropriate choice for the business subtype.
Final Tips for Your Application
Be Honest: Always be honest on your application. It’s better to provide accurate information about your side hustle than to exaggerate or guess.
Consider Your Credit Score: Like personal credit cards, business credit card approvals are based on your credit score. If you have a strong credit score, you’re more likely to be approved.
Start Small: If you’re new to business credit cards, consider starting with a card that has no annual fee. This will give you a feel for how business cards work without any financial commitment.
Final Thoughts: Unlocking More Rewards with a Business Card
Applying for a business credit card doesn’t have to be daunting, even if your business is just a small side hustle. Whether you’re selling items on Facebook Marketplace, offering freelance services, or running a small Etsy shop, anything that makes you money qualifies as a business—even if you don’t have an EIN. By following these steps, you can qualify for a business card, separate your personal and business expenses, and unlock more rewards to help fund your family’s travel adventures.
So, don’t let the term "business" intimidate you. If you’ve got a side hustle, you’ve got a business—and you might just be a few clicks away from unlocking a whole new world of rewards. If you need help choosing, here’s a list of my favorites.
Editorial Disclosure: Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
Advertiser Disclosure: The Rewards Mom has partnered with CardRatings for our coverage of credit card products. The Rewards Mom and CardRatings may receive a commission from card issuers.
