I Don’t Own a Small Business. Here’s Why I’m Still Getting a Business Credit Card

As a full-time writer, I file my taxes as a self-employed person, which makes me eligible for these cards. But until recently I haven’t taken them seriously, mainly because I didn’t think I’d spend enough on office supplies to justify notching another inquiry on my credit report. Like the horrible romance movie trope, however, I feel like something has lifted the nerdy glasses off these cards and shown them to me in a different light. Here’s why I’ve changed my mind and am getting a credit card for freelancers. 

I’m terrible at organizing my business expenses 

One of the primary reasons for getting a small business credit card is to keep your business expenses separate from your personal spending. This is crucial for tax purposes, as it’s all too easy to muddle the two and fail to get your full tax deduction for business expenses. 

Over the years, that’s what’s happened to me. When I first started freelancing, my expenses were basically null. Now I’m spending money on numerous applications, like Grammarly and Microsoft Word, along with subscriptions to The Wall Street Journal, The New York Times, Barron’s, and other financial publications. On top of that, I work from home and can deduct a portion of my internet, utilities, and rent. 

All in all, my business expenses are starting to accumulate, and it’s difficult to keep track of them. Last tax season, for instance, I was so worried about getting my 1099 forms, it slipped my mind to do a proper inventory of my business spending, resulting in a slew of forgotten office supplies and subscriptions. For me, then, the beauty of a business credit card is that it would log all my business purchases under one account. When tax season rolls around, I can easily see how much I’ve spent and report it on my tax return. It’s like having a personal assistant. That is, as long as I remember to charge business expenses to the card.

The rewards and welcome offers are enticing 

Okay, so I want a small business credit card to act as a personal ledger. But I also want to earn the most rewards possible for my business expenses (come on — why else would I get a rewards credit card?). Keeping in mind that I spend the most on internet and subscriptions, here are a few cards that have piqued my interest. 

• Ink Business Unlimited® Credit Card: This card earns an unlimited 1.5% back on all purchases, has a $0 annual fee, and offers a 0% intro APR period for 12 months. I love the card’s simplicity, and the welcome offer definitely has my eyes watering. Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening. 
• Capital One Spark 2X Miles: This card earns 2x miles on every dollar with no caps or restrictions. If I redeem these miles for at least $0.01, that means I’m earning 2% back on all purchases — pretty good for a business credit card. It also has a generous welcome offer of Earn a one-time bonus of 50,000 miles – equal to $500 in travel – once you spend $4,500 on purchases within the first 3 months from account opening. 
• Ink Business Cash® Credit Card: This one might take the cake. It has a $0 annual fee and earns 5% back at office supply stores, internet, cable, and phone services, up to $25,000 in combined spending per year. Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening with this card. 

The fact that these cards have no annual fee is also a major factor influencing my decision. I don’t believe I’ll earn enough rewards on the card to justify paying the fee. But if your business expenses are really high, I’d consider the Ink Business Preferred® Credit Card, which earns 3 points per $1 and has one of the highest welcome offers I’ve ever seen — 100,000 bonus points when you spend $8,000 within the card’s first 3 months. 

• Click here to apply now for the Ink Business Preferred® Credit Card.

Make your own business credit card 

You can also make any rewards card your own business credit card. Choose a credit card from our list of best cash back cards and designate that your business card. For instance, if you buy supplies for your business from Amazon, then maybe a Prime Visa would be better for your personal finances. 

In sum, if you’re an independent contractor — like a Lyft or Uber driver — or a full-time freelancer, you could benefit from one of these cards. For instance, if you drive frequently for Uber, imagine how easy it would be to keep track of all your vehicle expenses — repairs, lease payments, gas, insurance — by putting them all on one card. It’s not a necessity, but if it helps you manage your expenses better, a business credit card could be a simple way to bring everything together under one account.