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.
1. Discover it – Cashback Match
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.
2. Costco Anywhere Visa Card by Citi
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.
3. Citi Double Cash – 18 Month BT offer
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.