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Muslim Girl/Getty Images November 08, 2022 Erica Sandberg is a credit and money management expert who began her career at Consumer Credit Counseling Service (CCCS). There, she helped individuals and families overcome their debt issues and developed budgets, then transitioned into the agency’s primary media spokesperson. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Bankrate logo

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At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo

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At Bankrate, we have a mission to demystify the credit cards industry — regardless or where you are in your journey — and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to: Meet you wherever you are in your credit card journey to guide your information search and help you understand your options. Consistently provide up-to-date, reliable market information so you're well-equipped to make confident decisions. Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you. At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next. Bankrate logo

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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Now more than ever, side hustles are part of consumers’ financial picture. According to a , 41 percent of U.S. consumers with a side job rely on that income to cover basic living expenses. And even those who already work a second job may need to increase that income to keep up with the rising cost of living. If you’re trying to grow your side gig, you might consider getting a . Here’s how to know if it’s time.

You have substantial start-up costs

Depending on you start, you may need to invest some money to get it going. For example, if you want to rent out a room with a company like Airbnb, you may need to spruce it up first. New bedding, furniture and a fresh coat of paint can set you back thousands. Or maybe you want to make and sell jewelry, clothes, crafts, baked goods or other products on an e-commerce site. If so, you may have to purchase products and set up a website. Instead of delaying your side hustle until you can scrape up the cash to start, consider applying for a . While you may not have enough funds at the ready, a bank certainly does. You don’t want to overspend and get into debt, though, so it’s a good idea to consult with a professional in your field. Contact , a nonprofit organization that can connect you with a retired executive who can help you develop a business plan with the amount you need to begin your side hustle at no charge. Once you know how much is required to , you can pursue the right business credit card to purchase those items while also being able to afford the monthly payments. If you have large initial costs, for example, you might consider the , which offers a chance at a high credit limit of $50,000. While this is a and the regular APR can be as low as 9.99 percent, the catch is the startlingly high end of the APR range: 34.99 percent. For that reason, this card only makes sense as a financing option for those with superb credit who can qualify for that ultra-low APR. If that’s you, you can also look forward to covering some of those upfront costs with the $200 bonus that you’ll receive after charging $15,000 in the first three months of opening the account.

Your operating costs are growing

As your business grows, so too may your operating costs. For example, perhaps you began your side hustle taking care of your neighbor’s dog. On a weekly basis that casual activity generated $100. But why stop with one dog? With a few regular clients, you can really multiply that figure. When you do, though, you may need to get pet-sitting insurance, buy a lot of supplies, spend more on gas to pick up other pets and advertise your services. When you want to scale up, consider a business credit card that can handle your side hustle’s expanding needs. It should as you spend on the things involved in your business, so look for one that offers a high-value rewards rate on those upcoming expenses. The , for instance, gives 5 percent cash back on the first $25,000 you charge on purchases within its bonus categories: office supply stores and internet, cable and phone services. If you’ve been shouldering your business’ initial with your personal cards, getting a business credit card for those increasing operating costs can be an excellent idea. Not only will you earn rewards, but you’ll also and be able to keep your business and personal finances separate. Or, maybe you got a bare-bones credit card to start your business, but now that you’re generating more income, you want a higher-end credit card with better perks and rewards. As a business owner, it’s good to periodically assess your financial tools to make sure they’re still the best option for you.

You re traveling more

Maybe your side hustle is photographing weddings and special events, and your clients span the country. Or you are turning your passion for adventure into writing about far-flung destinations for media outlets or your blog. A and perks will be an important addition. Analyze your travel needs and get the business card that will help you keep costs to a minimum while making your journeys more comfortable. Some are ideal for airfare, others for lodging and others for car rentals and gas. There are plenty of cards from which to choose. For example, if you are dedicated to a specific airline, consider credit cards that have partnerships with them, such as , which gives 65,000 bonus miles after you spend $2,000 in purchases within your first six months, free checked bags and priority boarding. Loyal to the Marriott brand? Check out the , which offers one free night’s stay every year after your card renewal month, complimentary Silver Elite status and a high rewards rate in many categories.

You need short-term financing

The last thing you want to do is lose money on fees while you are trying to earn extra money to make your life easier. Therefore, you may want to pursue a . With such a card, you can carry over a balance for a set number of months and not have to worry about interest adding to the amount you owe. As long as you pay off the entire debt before the regular rate goes into effect, you will not be charged any financing fees. This feature can save you a tremendous amount of money. Some of these intro offers are very long, such as the , which gives 20 months of 0 percent APR after the account is activated, and there is no annual fee. There are also times when you may prefer to borrow a fixed amount of money and then pay in even monthly installments. If so, a loan through the Small Business Association (SBA) may be a smarter choice. With the program, you can borrow up to $350,000, an amount that far exceeds the line on most business credit cards, and pay it off over several years.

What you need to get a business credit card

is easier than you might think. The one major barrier to entry is that you will almost always need good credit, which is generally a credit score of at least 670. For most small business credit cards, you don’t need to be a registered LLC or corporation to apply. Instead of a “business tax identification number,” you may list yourself as the sole proprietor and use your Social Security number rather than a tax ID number. You may have to list the type of business you have and the date you started. As with all credit cards, you will also list your income and basic expenses. Chances are your side hustle earnings qualify, as issuers consider a large variety of income-producing ventures. What is important is that you have enough money coming in to handle your expenses and the payments associated with the account.

After getting the right business card use it well

Once you have the right business card, be sure to use it advantageously. Your activity will likely appear on your consumer credit reports, as well as your business’s. Yes, that means late payments and other negative activity with your . Thankfully, the process for building business credit is pretty simple. Most importantly, make all of your payments on time and don’t come close to maxing out your credit lines. And make the most of your . The more you charge, the more you’ll earn, but you will also have to keep the balance at zero to come out ahead. If you want to reinvest the profits into your side hustle, you can — but you may also want to use them to alleviate the financial pressures that inspired you to start the business in the first place. SHARE: Erica Sandberg is a credit and money management expert who began her career at Consumer Credit Counseling Service (CCCS). There, she helped individuals and families overcome their debt issues and developed budgets, then transitioned into the agency’s primary media spokesperson. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer.

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