Millennial Money: How a business credit card fits gig work

Entrepreneurial types who freelance and side hustle their way through the week likely have access to a tool that could help them thrive: a business credit card.

If you drive a rideshare part time, regularly resell on eBay or book paid photography jobs on the side, you may qualify for a business credit card. You don’t need to have a storefront, employees or an LLC.

That’s useful information for the movers and shakers of the gig economy because credit cards aimed at small businesses differ from personal cards. They offer more lucrative rewards and eye-popping sign-up bonuses you won’t find on most personal cards.

While a business credit card alone won’t determine whether your business prospers, small-business customers seem to like them. They are “significantly more satisfied” with their business credit cards than customers are with personal credit cards, according to a 2019 study by J.D. Power.

Among those is small-business owner Joe Brancatelli. He’s a publication consultant and founder of the business-travel subscription newsletter “Joe Sent Me.”

He considers his business credit cards among the tools that help make his business go. “They help me segregate my personal and business spending, which is important for tax and other reasons,” he said.

The cards also help cash flow. “It’s relatively easy access to credit, which some business folks can’t get otherwise,” he said. “The same bank that might turn you down for a traditional business loan will give you a small-business credit card.”

Of course, the key is to use the card’s credit line strategically without paying interest, he said.

QUALIFYING AS A BUSINESS

You don’t need a business credit history to qualify for a business credit card. If you engage in an activity that earns...