Regular readers know that I’m a credit card arbitrage junkie. This one is for those of you that enjoy playing that game and want to take it to the next level, using business credit cards.
Why Are Business Cards So Useful?
They don’t report on your individual credit report. So you can use 90% of the limit on a bunch of cards and it won’t hurt you when you apply for more. It will appear as if they don’t even exist. This is clearly one of the most significant ways that I can carry over $200k in credit card balances and continue to be approved for more.
Do You Need a Business?
No, you do not need an incorporated business. You can open a business credit card as a sole proprietor. Most credit card companies allow you to open a business account as a sole proprietor using your name for the business name and your SSN. Before I had a business with a Tax ID number, I did this all the time. If it asked for my income, I just put down the amount of stuff I sold on eBay, which wasn’t that much. It doesn’t really matter though, because you can often reallocate your credit limits for bigger balance transfers.
In addition, some of the cards specify that “transferred balances must consist of business-related expenses.” Interpret that how you feel comfortable. I’ve always been honest with the companies and said what I was doing with the money and none of them had any problem with it.
Here are some 0% balance transfer business cards to get you started. If you want to make your plan of attack with the personal cards too, you can use the full list of 0% Balance Transfer Credit Cards.
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