If you work a side hustle to earn extra cash outside of your full-time job, you should consider getting a credit card solely for your business expenses. This helps keep your business and personal life separate and makes it easier to report your business activity for federal and state taxes.
For most freelancers and sole proprietors, a regular business credit card is overkill. A personal credit card can meet your professional spending requirements and earn cash back to help you afford your side business.
Here are four personal credit cards to help fund your side gig.
Rewards: 5% cash back on up to $1,500 in quarterly purchases for rotating bonus categories; 1% cash back on other purchases.
Sign-Up Bonus: This Discover it card matches all cash back earned in the first 12 months.
Annual Fee: $0
Annual Percentage Rate (APR): 0% APR for 14 months on purchases and balance transfers, then variable 11.99% to 23.99% APR.
Why We Picked It: Get your supplies from the right merchants and you’ll earn 5% cash back.
For Your Side Hustle: No matter what you do to earn extra cash, Target and Amazon.com should stock something you need. Through the end of this year, you’ll earn 5% cash back on all purchases from these two giants of retail.
Drawbacks: Bonus categories change every quarter and may not always be ideal for business spending.
Rewards: 4% cash back on up to $7,000 in eligible gas purchases per year; 3% cash back at restaurants and on eligible travel; 2% cash back at Costco and Costco.com; 1% cash back on other purchases.
Sign-Up Bonus: None
Annual Fee: $0 with a paid Costco membership.
APR: 0% APR for seven months on purchases, then variable 16.24% APR; variable 16.24% APR on balance transfers.
Why We Picked It: There are many ways to earn great cash back rewards.
For Your Side Hustle: Whether you’re driving, traveling, or dining out with clients on a regular basis, this card has a special cash back rate for you. All Costco and Costo.com purchases earn 2% cash back, and Costco stocks a virtually unlimited variety of goods for your side business.
Drawbacks: You need a Costco membership to get this card.
Rewards: 1% cash back on all purchases; an additional 1% upon payment.
Sign-Up Bonus: None
Annual Fee: $0
APR: Variable 14.49% to 24.49% APR on purchases; 0% APR for 18 months on balance transfers, then variable 14.49% to 24.49% APR.
Why We Picked It: If you want a solid cash back rate no matter what you’re buying, this card is for you.
For Your Side Hustle: Regardless of what you purchase, this card will earn 2% cash back by the time your purchases are paid off.
Drawbacks: If you tend to carry a balance every month, you won’t earn rewards as fast.
4. BankAmericard Cash Rewards Credit Card
Rewards: 3% cash back on gas and 2% cash back at grocery stores and wholesale clubs on up to $2,500 in combined quarterly purchases; 1% cash back on other purchases.
Sign-Up Bonus: $150 bonus if you spend $500 in the first 90 days.
Annual Fee: $0
APR: 0% APR for 12 months on purchases and balance transfers, then variable 13.99% to 23.99% APR.
Why We Picked It: Gas, groceries, and wholesale club purchases can help you keep your business running.
For Your Side Hustle: Driving a cab, selling baked goods, or stocking up on office supplies? This card can meet your needs, thanks to its special cash back rates at gas stations, grocery stores, and wholesale clubs. Bank of America banking customers get extra 10% cash back when they redeem their rewards for a bank account deposit.
Drawbacks: If you don’t bank at Bank of America, you’ll lose out on extra cash rewards.
How to Choose a Card for Your Side Hustle
The best credit card for your side hustle depends on the nature of your work. If you’re driving a cab, a card with gas rewards makes sense. A card with restaurant rewards might be more suitable if you take clients out to dinner. And if you’re running your business from a home office, you might want a card that can help you afford office supplies.
If you’re just launching your side hustle and you need to make a lot of purchases to get it off the ground, you should consider a card with a 0% intro APR offer. These cards avoid interest on purchases for a limited amount of time, helping you afford your startup costs.
Remember, maintaining a separate credit card for your side gig can help you in the long run by keeping your business and personal expenses divided. This can help you file your taxes and could be a lifesaver if the IRS ever audits you.
What Credit Is Required for a Side Hustle Card?
Depending on your needs, the credit requirements for your card of choice may vary. Either way, you need to be confident in your chances of approval before you apply. You can check your credit report free at Credit.com.
At publishing time, the Discover it Cashback Match card, the Costco Anywhere Visa Card by Citi, and the Citi Double Cash Card are offered through Credit.com product pages, and Credit.com is compensated if our users apply for and ultimately sign up for any of these cards. However, this relationship does not result in any preferential editorial treatment. This content is not provided by the card issuer(s). Any opinions expressed are those of Credit.com alone, and have not been reviewed, approved, or otherwise endorsed by the issuer(s).
Note: It’s important to remember that interest rates, fees, and terms for credit cards, loans, and other financial products frequently change. As a result, rates, fees, and terms for credit cards, loans, and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees, and terms with credit card issuers, banks, or other financial institutions directly.