Beginner with business credit card plan: 400,000+ points in 24 months
This is part of a series of Beginner Card Plans for people getting started with free travel. The ones below are also available:
- Solo Beginner (no business) Credit Card Plan: 225,000+ points
- Couple Credit Card Plan: 600,000+ points
In this plan, I’m assuming a single person who has the ability to sign up for small-business cards.
Applying for Business Credit Cards
To apply for a business credit card, you’ll need to have some form of business activity. But here’s the thing: a lot of people have a business without even realizing it.
If you sell items on eBay or Craigslist, do freelance work, rent out property, drive for Uber or Lyft, or offer services like tutoring or consulting, you’re likely operating as a sole proprietor. That simply means you run your business as an individual, without a formal business registration.
When applying as a sole proprietor, you can use your own name as the business name, your home address and phone number as the business contact information, and your Social Security Number as the business’s Tax ID. If you prefer, you can also request a free EIN (Employer Identification Number) from the IRS — it only takes a minute on their website.
A quick note on card use: business credit cards are designed for business-related expenses. While some people mix in personal purchases, it’s best to keep things separate, especially since certain consumer protections don’t apply to business cards.
Want step-by-step help with the process? Learn how to apply for a business card here.
To learn more about your eligibility for a business card, check out our article, “Am I Eligible for a Business Credit Card?“
Note: These articles were inspired by Frequent Miler and re-created content used from that site is used with permission.
Beginner with business credit card plan: 400,000+ points in 24 months ($5,000+ value)
Assumptions
This post is made with the following assumptions about the reader:
- Good credit score
- Hasn’t applied for any new credit card in the past few years
- Puts an average of $1,500 per month on credit cards
- Has a business (see above)
- Relationship status: single
- Travels mostly domestically, but would like to do more. Would also like to travel internationally a few times/year
- Wants a simple approach to earning and spending rewards
- Has never had any of these cards before
Plan overview
One of the fastest ways to build up points and miles is through credit card welcome offers. These offers can be incredibly valuable, and when managed responsibly, they don’t have to hurt your credit score. In fact, many people see their scores improve over time, as long as they pay their balances in full each month and keep spending well below their credit limits.
When you’re starting out, you’ll likely earn a nice stack of rewards while your credit stays steady or even increases slightly. But as you open more cards, some banks become stricter about approvals. Chase, for example, has what’s known as the 5/24 rule. This means that if you’ve opened five or more personal credit cards (from any bank) in the last 24 months, you typically won’t be approved for most new Chase cards.
The good news? Chase business credit cards don’t add to your 5/24 count. And if you use the Travel Freely app (which we hope you do!), you’ll find a handy 5/24 tracker right on your dashboard to help you stay on top of it.
Because of this, many people choose to start their rewards journey with Chase cards first. Chase has some of the most versatile travel cards and valuable transfer partners, and it’s smart to secure those before moving on to cards from other banks.
A good first step for many travelers is starting with the Chase Sapphire Preferred® Card, followed by the Chase Ink Business Preferred® Credit Card, and then expanding into options like the Capital One Venture Rewards Credit Card and a few other must-have Chase cards.
- Chase Sapphire Preferred Card: Earn 2X Ultimate Rewards points for travel & 3X points for dining. Points may be worth more when used in the Chase Travel℠ portal. Points are transferable to a number of airline and hotel programs, including Southwest, United, and Hyatt. There is a premium version of the Sapphire card called the Chase Sapphire Reserve® Credit Card. However, it comes with a $795 annual fee. Check out our article here to decide which card is right for you.
- Chase Ink Business Preferred Card: Earn 3X Ultimate Rewards points for travel, shipping, internet, cable, phone, and advertising with social media sites (up to $150K spend per year).
- Capital One Venture Rewards Credit Card: Great card overall for solid rewards for all spend, plus the ability to transfer rewards to airline miles.
- Chase Ink Business Cash® Credit Card: Earn 5X Ultimate Rewards points on office supplies and 5X cellular/landline/cable (on up to $25,000 in total purchases in 5X categories annually); and 2X on gas and restaurant purchases, on the first $25,000 spent in combined purchases, on each account anniversary year.
- Southwest® Rapid Rewards® Performance Business Credit Card and Southwest® Rapid Rewards® Premier Business Credit Card: Both often come with strong welcome offers. And, unlike the personal versions, Chase allows you to hold both business cards at the same time. This can make it much easier to earn the Southwest Companion Pass®, which lets you bring a travel companion with you on every Southwest flight (you’ll just pay taxes and fees) while the pass is active. Once you earn the Companion Pass, it’s valid for the rest of that calendar year and all of the next, giving you plenty of time to enjoy it. To make the most of it, many travelers aim to open these cards in December or January, so the points post to your account early in the new year, which maximizes how long the pass lasts.
Here’s a full strategy on the Southwest Companion Pass and why timing is so important.
- The New United℠ Explorer Card: considered as a “must-have” Chase card because it can be downgraded after a year to a no-fee United card which preserves this card’s two best features: a) Improved economy saver award availability, which makes it much easier to book international awards with United miles since it opens up space between airports domestically. (NOTE: this benefit will only be available to Gateway cardholders who spend at least $10,000 annually on the card) And b) Last seat standard economy award availability. This feature is great for those occasions when you are stuck with no good way to get from one place to the other.
- World of Hyatt Credit Card: keep for the annual free night certificate. Consider spending $15K per year for a second certificate, especially if you pursue Hyatt status since you’ll earn 2 elite qualifying nights with each $5K spend.
Also note that Chase offers cards from three hotel chains: Hyatt, IHG, and Marriott. Keep in mind that Amex also offers a Marriott card, so once you are over 5/24 it’s still possible to pick up a new Marriott card (the Amex version), but not an IHG or Hyatt card.
How Much Spend?
Most credit card welcome offers require you to spend a certain amount within a set time (usually three months) to earn the bonus. So let’s look at what that might look like for our example traveler.
If this person normally spends about $1,500 per month on a credit card, that’s $4,500 in three months without changing any habits.
To reach higher spending goals, they could also use a bill payment service (like Plastiq) to pay things that usually don’t accept credit cards — such as rent. Paying $1,500 per month through Plastiq would add a 2.5% fee ($37.50) each time. While it’s an extra cost, it can sometimes make sense if it helps you unlock a large welcome bonus.
All together, this example traveler could put around $9,000 on cards over three months, combining everyday purchases and strategic bill payments.
Preparation
Before signing up for any new cards, make sure you sign up for Travel Freely (it’s free). This is our free web-based tool that walks you through the process of signing up for cards to earn big bonuses. The tool keeps track of your cards including your 5/24 status, alerts you when time is running out to complete minimum spend, alerts you when annual fees are nearly due, and much more. Best of all, it’s free. =)
First Card:
Chase Sapphire Preferred® Card
The Sapphire Preferred is Travel Freely’s #1 rated card for beginners. It earns Chase Ultimate Rewards that are have high value and flexibility. You can redeem points easily in the Chase Travel℠ portal or transfer to many well known hotel and airline transfer partners (including Southwest, United, Marriott, and Hyatt). Here’s more about why we like this card and a Comprehensive Guide to Chase Ultimate Rewards.
Second Card
Chase Ink Business Preferred® Credit Card
Apply for this one 91 days after the last set card. If you’re using Travel Freely, you’ll get an email reminder that you’re ready to apply for new cards. Waiting 91 days is best so that the small hit to your credit report caused by the first card should have largely dissipated. In fact, it is common to find that your credit score is higher by this point than it was when you began.
This has an incredible signup bonus that you won’t be able to get once you’re over 5/24 so it’s definitely worth getting as soon as possible. There is a first year annual fee, but you can downgrade this card after the first year to the no-fee Ink Business Unlimited® Credit Card (1.5X everywhere) or to a second Ink Business Cash card (in case the $25K cap on 5X spend is too limiting).
Third Card
Capital One Venture Rewards Credit Card
Apply for this one 91 days after the last set card. If you’re using Travel Freely, you’ll get an email reminder that you’re ready to apply for new cards.
The Capital One Venture Rewards Card is particularly good for those starting out with credit card rewards. This card earns 2X everywhere, and points (they call them “miles”) are very easy to redeem. Simply charge travel to your card and then you can use “miles” to reimburse yourself for those statement charges at a value of 1 cent each. As you get more advanced, you can alternatively transfer miles to airline partners. If you know what you’re doing, this can lead to far more value from your points. Here’s more about why we like this card and a Comprehensive Guide to Capital One Miles.
Fourth Card
Chase Ink Business Cash® Credit Card
Apply for this one 91 days after the last set card. If you’re using Travel Freely, you’ll get an email reminder that you’re ready to apply for new cards.
Some are a huge fan of this card. Plus, there is no annual fee.
Fifth and Sixth Card
Chase Southwest Airlines Rapid Rewards® Performance Business Card and Chase Southwest Airlines Rapid Rewards® Premier Business Card
Apply for these one 91 days after the last set card. If you’re using Travel Freely, you’ll get an email reminder that you’re ready to apply for new cards.
For Southwest, it’s usually recommended to look into applying for one of these cards early in the New Year, but Oct. 1 and onwards is also a great time to consider applying, assuming you can hit the 3-month minimum spend requirement).
Seventh Card
Chase New United℠ Explorer Card
Apply for this one 91 days after the last set card. If you’re using Travel Freely, you’ll get an email reminder that you’re ready to apply for new cards.
The sign-up bonus for The New United Explorer Card tends to change throughout the year. If the current offer is on the lower side, it may make sense to wait or focus on another card, like a Southwest card, instead.
As a reference, a lower offer is typically around 30,000–40,000 miles, while a strong offer is usually in the 50,000–60,000 mile range.
Eighth Card
Hotel Card: Chase World of Hyatt Credit Card; Chase Marriott Bonvoy Boundless® Credit Card; or IHG One Rewards Premier Credit Card
My favorite here is the World of Hyatt, but make sure you factor in your hotel brand preferences. Each card comes with a free annual night on renewal of your annual fee, which is a value that justifies keeping the card long-term. Keep in mind that Amex also offers a Marriott card, so once you are over 5/24 it’s still possible to pick up a new card (the Amex version), but not an IHG or Hyatt card.
Add It All Up
If you’re approved for all of the cards listed above, earn the average welcome offers, and meet the spending requirements, you could end up with over 400,000 points and miles — and that’s before counting the rewards you’ll earn from everyday spending.
Depending on how you use them, that amount of rewards could be worth around $5,000 in travel, from flights to hotel stays and more.
Slow and Steady is the Simplest Way to Travel Freely
Getting started with credit card rewards can feel intimidating — especially if you’re new to the idea of free travel and wondering, “What’s the catch?” It’s a fair question!
The truth is, banks can afford to offer big welcome bonuses because many cardholders carry balances and pay interest, while banks also earn small fees from every transaction. For those who pay their balances in full each month, those same systems make it possible to travel for (almost) free.
Confused? Here’s a Simple 1-2-3 Plan for a Beginner
Travel Freely Members average $500+ in free travel with their first card bonus. Business owners average $800. You can be booking your free travel in as little as 3-4 months.
First of all, Sign up for Travel Freely (for free) to access the Get Started Guide.
1. APPLY – Get ONE great card from your CardGenie Recommendations.
2. EARN – Put all your regular spending on the card and hit your bonus.
3. TRAVEL – Use our Resources page and free guides to book your first free travel!
Just want a list of the best cards? Here are our best monthly offers and our list of overall card recommendations.
