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In this post, I am sharing a strategy that I’ve been able to optimally leverage to travel the world for a significant discount.

This tactic involves using travel miles and points earned from business credit cards.

Similar to personal credit cards, business credit cards can also provide lucrative sign-up bonuses that can be ultimately used to redeem for free flights and hotel stays.

One of the most generous bank institutions that offer a wide range of business travel credit cards in the United States is JP Morgan Chase.

In fact, a standard Chase business card has the potential to reward users with over 50,000 Chase Ultimate Rewards Points after meeting the necessary minimum spend.

Ultimately, the points can be redeemed for free or discounted travel.


I Do Not Have a Company or an EIN. Am I Eligible?


If you own a company or are a self-employed full-time contractor, applying for a business credit card should be easy.

But for part-time side hustlers who occasionally moonlight, filling out a business credit card application can be incredibly unnerving.

I can just imagine how daunting it could be to provide information, such as your company’s name and EIN (Employment Identification Number), when you do not have them.

It also does not help that there is a common misconception that seasonal side hustlers are not classified as business owners, thereby automatically disqualifying them from business credit cards altogether.

Nothing can be further from the truth.

Regardless of the revenue, anyone who earns a profit from any venture is considered a sole proprietor and, therefore, eligible to apply for business credit cards, including Chase Business Credit Cards.

In this post, I aim to demystify the business credit card application process so you can confidently answer the application form even if you do not have a company and an EIN (Employer Identification Number).

Above all, I would like to increase your odds of getting approved so you can inch closer to your next bucket-list vacation.

TRAVEL-MILES-AND-POINTS
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Side Hustlers are Eligible to Apply for Business Credit Cards


Virtually anybody with a side hustle or thinking of starting a future business may be eligible to apply for a Chase Business Credit Card.

That’s right; you may qualify even if you are just in the initial stages of your business!

Simply put, your side hustle does not need to be entirely off the ground yet—you can also qualify while conceptualizing it.

Broadly speaking, though, having an existing side hustle, regardless of income, fundamentally makes you a more qualified candidate, but it is not a requirement. Hence, any start-up is eligible.


What Businesses Qualify As a Side Hustle?


As previously mentioned, any side hustle is considered a business.

When I first applied for a business credit card over a decade ago, I doubted I would be approved.

I was only selling “junk” on eBay and Craiglist periodically, and the income I received from it was inconsistent and barely sufficient to pay for gas.

When I qualified for my first-ever business card, I was beyond ecstatic.

Do you mean I can get travel points to book free business class tickets just by merely selling random used stuff online? Absolutely!


List of Popular Side Hustles:


  • buying and selling online (Facebook marketplace, Amazon, Etsy, eBay, etc.)
  • tutoring
  • driving for Uber/Lyft
  • tour guide
  • being an Airbnb host
  • caregiving
  • babysitting
  • dog-walking
  • instacarting
  • freelance writer
  • doordashing
  • coaching/consulting
  • any manual labor you do on the side – plumbing, electrician, lawn mowing, etc.
  • having your own blog/podcast/YouTube channel
  • having a rental property
  • any freelance gig that yields a 1099 come tax time
  • your side hustle!

In summary, you do not need to own a multi-million dollar company to qualify for a business card, nor do you need a physical office – your business address can be your primary residence.

Furthermore, you don’t need to work in your business full-time. It can be part-time, seasonal, or a few hours throughout the year.

You are eligible as long as you are engaged in some activity to earn a profit!

To sum it up, any side hustle will do, regardless of the nature and structure of your enterprise.


Income And Credit Scores


How Much Income Do I Need When Applying for Business Credit Cards?

When I started my side hustles over a decade ago, the income I generated from them was nothing to write home about. I endured many years of floundering ventures until I got to where I am now.

Even though my business endeavors were fumbling then, that did not impact my eligibility to get approved for business cards.

So, I continued applying and traveling for free despite having numerous downturns in my undertakings.

The point is that “income” is not the only factor Chase will consider before approving.

Instead, Chase will most likely focus on your financial history to determine your viability.

Thus, cultivating a stellar credit score is recommended.

Moreover, they will certainly assess your credit utilization rate, which is simply the debt ratio to your total credit.

The following formula calculates this ratio: “What You Owe” divided by “Your Total Credit.”

The lower your credit utilization rate is, the higher the likelihood of approval.

At any rate, as long as you have a side hustle, you could potentially get approved regardless of your current earnings.

You don’t even need to have a steady revenue stream.

Of course, who doesn’t wish for consistency in our income sources?

But if you are concerned that not earning enough could adversely affect your application, it usually wouldn’t.


Am I a Good Candidate for a Chase Business Credit Card?


Since I value frugality and not frivolously spending on unnecessary expenses, I do not recommend applying for business credit cards if you are having a challenging time carrying out the following:

  1. Pay the bill on or before the due date
  2. Pay the bill in full

The goal is to fly for almost free. Hence, paying finance charges inherently defeats the purpose of this strategy.

In short, if you have existing consumer debt, pay them off before applying for business credit cards.

Alternatively, if you have difficulty adhering to paying your credit card balances altogether, month per month, then I strongly suggest bolstering your savings account first by employing these heavyweight saving strategies.

Once you possess this new frugality habit and have saved up a decent emergency fund, you are more than ready to sign up for business credit cards.

Remember, paying banks ridiculously high interest fees is not a good idea.


How Do I Answer a Chase Business Credit Card Application as a Sole Proprietor?


There are two components to a Chase Business Credit Card Application.

  • Business Information Section
  • Personal Information Section

Rule Of Thumb: Be Truthful

Below are the typical questions included in a business credit card application and my cheat sheet on how to answer them.


Business Information of a Chase Business Credit Card Application


The form below may not be identical to what Chase shows, as they update it frequently, but the required information will be the same.

Chase.Com

QuestionAnswer
Legal Business Structure Sole Proprietorship
Business Legal Name Your Full Name (e.g. Kris Abad)
Desired Business Name on CardYour Full Name
Is Your Business’s Physical Address The Same As Your Address?No
Tax ID TypeSocial Security Number (SSN)
Choose One/Select the Category of Your Particular Side Hustle.

If your side hustle is Facebook Marketplace, then I would select “Retail: Automotive, Clothing, Food, Gas, Health, Home Goods.”
Yes
Number of Employees
(Enter the number of all additional employees, not including yourself. Enter “0” if you’re the only employee.)
0
Business PhoneSame as Personal
Business Established DateSelect from the drop-down.
Annual Business Revenue Estimated Annual Profit of your Business ($1000 or higher).
Business CategoryIndicate the date when you started to conceptualize your business.
Business Type Choose any items on the drop-down menu. (Examples: Clothing, Home, etc.)
Business Sub-TypeSelect from the drop-down
NAICS Code Leave blank
Estimated Monthly Spend$50+

Personal Information of a Chase Business Credit Card Application


Chase.Com

QuestionAnswer
Authorizing Officer TitleOwner
First & Last NameFirst & Last Name
Date of BirthYour Date of Birth
Primary Phone NumberMobile Phone
Mother’s Maiden NameYour Mother’s Maiden Name
Email AddressEmail Address
Tax ID TypeSocial Security Number
Address TypeDomestic
Total Gross Annual IncomeYour Annual Gross From All Revenue Streams (Full Time Job, Side Hustles, etc.)

Chase will also ask if you would like to add employee cards. This is optional and can be obtained anytime after getting approved.

Then, you will be asked to review their E-Sign Disclosures, Pricing & Terms, and Certifications. Lastly, check the box that certifies that you have read and agreed to Chase’s terms and conditions.

Wait for a few seconds and cross your fingers for instant approval. If not, do not worry, I will walk you through the next steps in the following sections.

Before applying, I recommend that you read the entire blog post so you can determine your eligibility and know how to troubleshoot when denied.


What Are The Chances That I Will Get Approved?


NOTE: Due to the COVID-19 pandemic, banks have reportedly become more stringent in approving business card applications. It is still possible to get approved, though, particularly if you have a stellar credit history and consistent income from your current side hustle. This will likely change when the economy stabilizes again.

If this is your first Chase business credit card application, you are more likely to not get instant approval.

But, please do not worry, this is quite common.

As previously mentioned, banks require some time to review your application and assess your financial history & credit score, especially if this is your first foray into business credit cards.

At the end of the day, they will still be at the losing end if the consumer has a high risk of defaulting.

If your credit history shows that you are financially responsible, you will most likely receive an approval letter in the mail.

I cannot emphasize enough the importance of maintaining an immaculate credit score (700+).

It is not the end of the world if you receive a pending approval or a denial.

Feel free to contact Chase to inquire about the reason for the denial.

This will help you identify areas for improvement before your next business card application.


Other Variables That Can Increase the Likelihood of Approval


  1. Good to excellent credit.
  2. Low credit utilization ratio.
  3. Establish a business banking relationship with Chase.

Credit Score


WHAT IS THE MINIMUM CREDIT SCORE REQUIRED?

Having a good or excellent credit score increases your chances of approval. To be approved for either of the Sapphire cards from Chase, you must have a good to excellent credit score.

Your creditworthiness is determined using a model called FICO scores. You’ll likely not be approved if your FICO score falls below 640.

We recommend aiming for a credit score of 720 or higher to improve your chances of approval.

Checking your credit score is easy and free on websites like Credit Karma or Credit Sesame.


Credit Utilization Ratio


WHAT IS THE MINIMUM INCOME REQUIRED?

Chase is known for approving applicants with various incomes and credit scores. No minimum income is required to apply for the Chase Sapphire Preferred or Reserve.

However, Chase does look at your debt-to-income ratio (credit utilization ratio) when considering applications. Your debt-to-income ratio is your monthly debts divided by your monthly income.

For example, if you have $500 in monthly debts and a $2000 monthly income, your debt-to-income ratio would be 25%. Chase prefers to see a debt-to-income ratio of 50% or less.

Make sure to pay off some debt first before applying for the Sapphires.

Pro tip: If you have any outstanding balances on other credit cards, we recommend paying them off before applying. This will give you the best chance of being approved for a Sapphire card and getting a high credit limit.


Establish a Business Banking Relationship With Chase


Opening a business checking account has been reported to increase the likelihood of a successful business card application.

With that said, I’d wait to time my application for a Chase business checking account when a bank bonus is currently offered.


Recommended Chase Business Credit Cards


Chase Business Credit CardsLinks to Current Best OfferPoints
Ink Business Preferred® Credit CardWelcome OfferTravel
Ink Business Cash® Credit CardWelcome OfferCashback/Travel
Ink Business Unlimited® Credit CardWelcome OfferCashback/Travel
Ink Business Premier℠ Credit CardWelcome OfferCashback
IHG One Rewards Premier Business Credit CardWelcome OfferIHG Hotel
Southwest® Rapid Rewards® Performance Business Credit CardWelcome OfferSouthwest Points
Southwest® Rapid Rewards® Premier Business Credit CardWelcome OfferSouthwest
Points
United℠ Business CardWelcome OfferUnited Miles
World of Hyatt Business Credit CardWelcome OfferHyatt Points

Convert Cashback to Ultimate Rewards Points


The Ink Business Cash and the Ink Business Unlimited are advertised as cash-back cards.

Thankfully, there is a way to convert cashback from these cards into travel points (Chase Ultimate Rewards Points).

The post below will walk you through the steps on how to do this conversion.

Before you apply, let’s review one crucial policy you must be familiar with regarding Chase.

It is called the 5/24 Rule.

Simply put, your chances of approval for a Chase Business Credit Card hinge on whether you are below 5/24.


Chase Bank’s 5/24 Rule


Knowing your 5/24 status is critical before applying for Chase Credit Cards, including the recommended Chase Ink Business Credit Cards above.

Chase instantly rejects applications if you have applied and gotten approved for five personal credit cards across all banks in the past 24 months.

This is an important rule to be familiar with when applying for Chase cards.

I recommend not applying haphazardly for non-Chase personal credit cards unless there is an irresistibly generous sign-up offer. Each slot of your 5/24 status is precious.

Even though your Chase Business Credit Card application is contingent upon your 5/24 status, business cards do not add to it since only personal cards affect your 5/24 standing.

If you want to determine your 5/24 status, the blog post below has DIY instructions so you can figure it out on your own.

Alternatively, please feel free to contact us via our FREE Travel Miles and Points Facebook Group so we can help you through the process.


How Do I Meet The Minimum Spend Requirement (MSR)?


What is MSR (“minimum spend requirement”)?

To receive the business credit card’s bonus rewards, you must meet a minimum spending requirement within a specific time frame. Failing to complete these conditions will forfeit your reward.

So, how can you meet this spending requirement if you have yet to start your business? That’s a valid question!

If you feel you cannot meet the minimum spending requirement and are in danger of missing out on the bonus, the related post below lists strategies for fulfilling the required spending.


What If I Do Not Have a Business? Start One!


Do not fret, you do have a couple of options.

As mentioned above, applying for a business card is possible if you are still in the beginning stages of planning for a business.

As with all businesses, we all need initial capital to fund our “start-up” expenses, and sometimes the fund source can come from a credit card. Banks are aware of this.

Consider applying for business credit cards if you plan to start a podcast or a dog-walking side job (or any of the examples above).

The welcome bonuses can be truly rewarding.

Pro-Tip: Selling Stuff at Facebook Marketplace is an easy side hustle anyone can start anytime!

It also goes without saying that if the COVID-19 pandemic taught us something, the future is fundamentally unpredictable.

No one can foresee if our business will be a roaring success or an unfortunate letdown. Neither the bank nor you can foretell that. Thus, viability is not a determining factor in getting approved.

Alternatively, if you do not plan to have a business in the future, I recommend exploring personal travel credit cards instead.

Austrian Air Business Class “Throne Seat”
Austrian Air’s Business Class “Throne Seat” Using Chase Points transferred to United (LAX-VIE)

Final Thoughts


I am a huge fan of lucrative credit card welcome bonuses, so I try to take advantage of these offers whenever the opportunity arises.

Having a side hustle or a business not only multiplies your earning potential but also exponentially increases the variety of cards you can apply for, propelling you closer to your next dream vacation.

With that said, a gentle reminder to only apply for credit cards that you can comfortably pay once your statement comes around.

Paying those hefty credit card fees is antithetical to the frugality principles I espouse in this blog.

I hope the actionable tips outlined in this post can help you get approved for your first-ever Chase Business Credit Card.

Feel free to reach out anytime with questions!

Good luck!

EDITORIAL DISCLOSURE – Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. The content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.