topic Re: Am I eligible for a business card?? in Business Credit

Am I eligible for a business card??

Anonymous — Mon, 10 Sep 2018 20:46:23 GMT

I'm looking at getting the Amex BBP but I really don't have an official business started yet. I have a few friends that are interested in the points and miles game and I want to do some consulting in the near future. Would this count as a business when filling out an Amex business application? I was hoping to get the card to separate business expenses, but my revenue would be $0 and likely not more than $500-1000 per year in the future.

Am I eligible for a business card given these circumstances? Also how soon would I need to start consulting if I decided to get the business card first?

Thank you!

Re: Am I eligible for a business card??

Anonymous — Tue, 11 Sep 2018 21:35:40 GMT

@Anonymous wrote:
I'm looking at getting the Amex BBP but I really don't have an official business started yet. I have a few friends that are interested in the points and miles game and I want to do some consulting in the near future. Would this count as a business when filling out an Amex business application? I was hoping to get the card to separate business expenses, but my revenue would be $0 and likely not more than $500-1000 per year in the future.

Am I eligible for a business card given these circumstances? Also how soon would I need to start consulting if I decided to get the business card first?

Thank you!

The best way to answer this is with another question: if Amex were to audit you (i.e. financial or other review) would you be able to prove business expenses? Prove business income?

It is not necessarily required to have an EIN or business registration certificate when applying for many small business credit cards. Many people with small, side gigs qualify for small business cards as sole proprietors. However, with all things honesty is the best policy. I would recommend waiting until you actually have had a paying consulting job before you apply for your first small business card. That way, if Amex (or any other bank) were to inquire, you would be able to provide proof of your consulting business-even if it is simply an invoice for services rendered.

Re: Am I eligible for a business card??

Anonymous — Tue, 11 Sep 2018 23:33:41 GMT

@Anonymous wrote:
@Anonymous wrote:
I'm looking at getting the Amex BBP but I really don't have an official business started yet. I have a few friends that are interested in the points and miles game and I want to do some consulting in the near future. Would this count as a business when filling out an Amex business application? I was hoping to get the card to separate business expenses, but my revenue would be $0 and likely not more than $500-1000 per year in the future.

Am I eligible for a business card given these circumstances? Also how soon would I need to start consulting if I decided to get the business card first?

Thank you!
The best way to answer this is with another question: if Amex were to audit you (i.e. financial or other review) would you be able to prove business expenses? Prove business income?

It is not necessarily required to have an EIN or business registration certificate when applying for many small business credit cards. Many people with small, side gigs qualify for small business cards as sole proprietors. However, with all things honesty is the best policy. I would recommend waiting until you actually have had a paying consulting job before you apply for your first small business card. That way, if Amex (or any other bank) were to inquire, you would be able to provide proof of your consulting business-even if it is simply an invoice for services rendered.

Thanks for the tips. Currently I've done a few pro-bono consulting sessions with friends and family, but if I were to charge, it would only be a small fee and the expenses would be a business meal or things of that sort. I've also heard that Amex doesn't mind if you put personal spend on their business cards but I'm probably going to tread lightly with that.

As far as proof of business, I could provide invoices as you said, and for proof of income, I'm not sure how that would work besides showing checking account statements with check deposits or transfers from clients.

Re: Am I eligible for a business card??

Anonymous — Wed, 12 Sep 2018 18:18:30 GMT

You can put you are in business for a year and you have 1k of income as that is your expected income. They won't audit you if you say you have 1k in income. The people who get asked for proof of income from Amex are people who put significant business income. I have yet to hear someone being declined for an Amex business card because their business income is too low. Amex wants to get you in as a customer in case your business grows. If you are saying you have 100k of business income then expect a more thorough evaluation.

Re: Am I eligible for a business card??

Broke_Triathlete — Wed, 12 Sep 2018 20:13:28 GMT

I'd say once you get paid for a consulting gig then they can't argue you have a business. You should be golden then. Good luck!

Re: Am I eligible for a business card??

Anonymous — Wed, 12 Sep 2018 22:26:41 GMT

There is a SUB right now valid until 9/26 that would get me 10K MRs after I spent 3K in 3 months. The only issue is that I don’t have 3K in “business” expenses so it would be personal spend.

Would Amex be okay with personal spend on a business card? How would Amex be able to detect this information?

Re: Am I eligible for a business card??

simplynoir — Wed, 12 Sep 2018 22:30:30 GMT

@Anonymous wrote:
There is a SUB right now valid until 9/26 that would get me 10K MRs after I spent 3K in 3 months. The only issue is that I don’t have 3K in “business” expenses so it would be personal spend.

Would Amex be okay with personal spend on a business card? How would Amex be able to detect this information?

AMEX is fine with mixing personal with business and vice versa.