Daniela Negrette, Author at Creative Circle

There comes a time in every freelancer’s career (usually around tax season) when you wonder if it isn’t time to open a separate credit card to cover business expenses. Maybe it’s the hassle of trying to parse through business purchases on a single credit card statement and cross-checking with a budget to keep track of personal expenses and business expenses. Maybe it’s the prospect of scaling up operations with some bigger purchases or even hiring an employee. Maybe it’s about making the most of all the traveling you do for work by getting some serious travel rewards. Opening a credit card for your business comes down to understanding your work, your needs, and what direction you want to take your freelancing.

Do you need a separate credit card?

Opening a new credit card isn’t necessary for every freelancer. Plenty of folks who freelance use their personal credit cards for business expenses and use budgets and spreadsheets to keep track of and separate the expenses. If you’re only picking up a few small gigs a year, your business expenses are minimal, or if you’re only doing a bit of contract work on the side of your full-time job, a separate credit card for work might not be necessary.

Opening up a separate card becomes handy when you are regularly spending money for work like paying for gas to get to and from jobs, paying for software subscriptions, memberships, phone and internet plans, other office supplies, needs for client meetings, etc. The most important thing here is a separation of church (personal expenses) and state (business expenses). Sure, there are certain items like internet use that occupy a gray space (technically you can only write off a computer as a business expense if you use it for business purposes more than 50% of the time!), but if you’re taking the time and credit to open a separate card for business, avoid using that card for your personal pursuits and vice versa.

Personal Credit Card or Business Credit Card?

If you’re at the point where a separate credit card is necessary, it’s important to understand the difference between a personal credit card and a business credit card to decide which one will suit your needs and goals better.

While personal credit and business credit are separate types of credit, having a good to excellent personal credit score is often necessary to open a business credit card. By the same token, a business credit card that goes delinquent can be detrimental to your personal credit score.

Your business doesn’t have to hit a certain benchmark for you to qualify for a business credit card: you don’t have to have employees, you don’t have to make a certain amount of money, you don’t need to be incorporated, and you don’t need an employer identification number to open a business credit card, although the application process is a bit more involved than a personal credit card. There are plenty of advantages to having a business credit card, but a few main ones stick out.

Higher Credit Line

Business purchases can be steep, and business credit cards take business revenue into account, so business credit cards tend to allow for more spending power than a personal credit card if approved. This might not feel relevant if your freelance work doesn’t require big purchases, but if you’re expanding your business, having access to a higher credit line can be just the thing you need to take your business to the next level.

Building Business Credit

The biggest pro for going in on a business credit card is future-focused. Do you eventually want to expand your freelance work? Do you want to be able to take out business loans? Having excellent business credit is crucial, and a business credit card is the perfect first step in building that credit—as long as you make your payments in full and on time like any other credit card. Even if you don’t plan on taking out loans, building your business credit can help qualify for other business credit cards that have stronger rewards and perks or can work with your needs for payment terms.

Rewards Rewards Rewards!

Business credit cards can have higher rewards earnings and perks compared to personal credit cards. Some cards like the Chase Ink Business Preferred Credit Card and Blue Business Plus Credit Card from American Express offer big welcome bonuses that kick in after spending a certain amount of money upfront, so if you know you have a big business expense coming up, it could be a good idea to look into a card with a good welcome bonus.

Business credit cards have bonus categories that are suited to running a small business like travel, internet and phone services, tech social media advertising, etc. The U.S. Bank Business Triple Cash Rewards World Elite Mastercard offers a 5% cash back on prepaid hotel and car rentals that are booked through the card’s Reward Center.

The popular Chase Ink Business Unlimited Credit Card (different from Ink Business Preferred) has no annual fee and unlimited 1.5% cash back although they do not specify any bonus categories.

Other cards like The American Express Blue Business Cash Card offer 2% cash back on eligible purchases capped at $50,000, at which point the cashback rate is 1%.

The Bank of America Business Advantage Customized Cash Rewards cash back structure offers a customizable option, allowing the holder to choose from six different categories to receive 3% cash back—and you can change the category from month to month, which is helpful if you know you’re going to have a month that’s heavy on a certain category like consulting or big tech purchases.

A helpful tip with the type of card you go for: make sure the rewards are something you actually use (if you work from home and prefer staycations, maybe skip the travel points) and strategize to take your personal credit card perks into account so there’s no redundancy in benefits.

Cons of a Business Credit Card

As nice as these perks are, there are things to be wary of when it comes to business credit cards as well.

Fees and Interest rates:

Business credit cards (including the aforementioned Chase Ink Business Preferred) tend to have annual fees that can range from about $100 to a few hundred, so be sure that the money you’re making from your freelance work at the very least can recoup that cost or use a card that doesn’t have an annual fee.

Interest rates on business credit cards also tend to be higher, so it’s that much more important to pay the cards off in a timely manner. Check out the APR and double-check how the intro APR (the rate offered for the first roughly 12 months) compares with the actual APR (after the intro period ends).

Less Protection

Business credit cards are not covered by the Credit Card Act of 2009, meaning the fraud and theft protection that most personal credit cards offer are not necessarily available (or a legal obligation) to business credit cards. While many cards tend to offer protection anyway as a courtesy, always check with your issuer about their protection against fraudulent activity.

Consequences for mixing business and leisure

Once again, the most important part of opening a business credit card is that you do not make any personal purchases on the business card, but that’s especially true for business credit cards. Not only does it defeat the purpose of opening a business card, but it could potentially violate the terms of the business credit card and could even lead to consequences like termination of your account depending on the card issuer.

Opening a new credit card might not be for every freelancer; it just comes down to your needs. But if you understand the work that you do and have a clear vision of how you want your work to grow in the future, investing in a credit card could be just the thing you need to take your work to the next level.

About the author.
Sam Mani writes about work, creativity, wellness, and equity — when she’s not cooking, binging television, or annoying her cat.

Juneteenth marks a day of recognition, restoration, and celebration. A day that celebrates African Americans’ resilience, spirit, and strength throughout history. As we all know, creatives make the world go round! Black voices have used their passions to uplift communities, amplify voices, and push toward a better future. So, we asked Black Excellence of Creative Circle, a Creative Circle Employee Resource Group (ERG), to share a playlist that helps them celebrate and commemorate this day. Our list is meant to celebrate the voices that have been a driving force to uplift generations of African Americans through their passions, activism, and infinite creativity.

Listen to the full playlist on Spotify!

1. U.N.I.T.Y Queen Latifah

2. Wade in the Water by Ella Jenkins

3. How I Got Over by Mahalia Jackson

4. What A Wonderful World by Louis Armstrong

5. They Don’t Care About Us by Michael Jackson

6. I Am Not My Hair by India.Arie

7. Alright by Kendrick Lamar

8. FIND YOUR WAY BACK by Beyonce

9. Before I Let Go by Frankie Beverly and The Butlers

This one’s for the job seekers! The ones who are applying, the ones who are interviewing, and the ones who are STRUGGLING! The general consensus is that the market is hard (not that stating it helps). We asked our network to tell us what they hate about applying for jobs. Hopefully one of their responses will make you feel like you are not alone because applying for jobs sucks. To join in on the conversation or make a complaint, visit our poll here.

Tell me how you REALLY feel! Please.

My password manager is in overdrive right now.

Oh, the hoops we jump through.

Who knew ghosting doesn’t only exist on Tinder?

EXACTLY.

Is the cover letter dead? Yes, no, maybe so! From hiring managers and HR professionals to candidates, we called for all the gripes, best tips, and positives about cover letters being on the decline. Here’s what they had to say about the dreaded cover letter. We wanna hear what you have to say, join in on the conversation here!

Thank you notes > cover letters.

Yes! Say it louder for the hiring professionals in the back!

A “portfolio” is worth a thousand words.

We (candidates) are begging, please listen to this!

This.

The 2023 job market has been a bit of a rollercoaster ride, see-sawing up and down—so it makes sense if you’re looking for a way to gain an edge over your peers. Recent research from ResumeBuilder shows that Chat GPT may be the latest in-demand job skill companies seek when hiring creatives. According to data gathered from a survey of 1,000 American business managers, 90% said that having ChatGPT experience listed on a resume is a plus for jobseekers.

Chat GPT is part of the burgeoning generative AI tech taking the world by storm. A 2022 study by McKinsey found that businesses had doubled their use of AI in the last five years. If that scares you, it may be time to reframe your thinking (though we will get into some of the controversy around this tech a bit later).

Generative AI can augment the capability of workers by doing tedious tasks that would otherwise take up time, freeing one up to do work that is more creative or conceptual. You are still in charge, you just have more freedom to dream, think big, and create.

Nearly half (49%) of the companies surveyed by ResumeBuilder already use ChatGPT to draft meeting summaries, write code, create content, or assist with customer support. Of the companies surveyed that are not yet on the generative AI bus, 30% plan to start using it, and a whopping 85% will begin within the next six months.

One way to look at this new tech is that it’s the same as other in-demand skills, like PowerPoint, and candidates familiar with this emerging field will have a leg up on those not yet comfortable using the latest tech tools. Generative AI will continue to entrench itself into the fabric of our professional (and personal) lives, making it an increasingly important skill. Layering knowledge of generative AI into your arsenal of creative skills will help you stand out today.

Since its launch in late 2022, ChatGPT and other generative AI technologies have swept the tech world by storm. Companies like Microsoft and Canva have incorporated this type of AI into their products, opening new possibilities. But this new technology has also raised some concerns for creatives that their expertise may become obsolete with the rise of these new tools.

48% of the business managers surveyed by ResumeBuilder shared that ChatGPT has already replaced workers. With companies like Canva augmenting their creative AI offerings, job displacement is a fear for designers as these new AI design tools proliferate. There is growing concern that some creative jobs may become increasingly automated and that the threat of decreased creativity looms for those still employed.

So, what can designers and creatives do to protect themselves from the potential challenges of generative AI?

One way to stay ahead is to master this new tech and use that knowledge as a differentiating skill on your resume. Staying ahead of the curve and keeping current with emerging developments in the AI space, particularly as they relate to design and creative endeavors, will allow you to grow your skills and expertise and figure out how to leverage this tech to work for you.

Hiring managers want to see what you can accomplish using this new tech—so play around and create a small trove of work generated with ChatGPT and other generative AI tools. Employers want to see that you are on the vanguard of what’s new and are excited to explore what’s possible with new tech—which is valuable no matter your industry.

If you want to enhance your Chat GPT and generative AI skills, there are various training and certification courses available online from Coursera and other e-learning platforms.

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Takeaway

Learning to use Chat GPT and generative AI may offer you a smart competitive edge over your peers. Consider staying ahead of the curve and positioning yourself as an early adopter of new tech to ensure you can be noticed and succeed in this dawning age of AI.

Creative briefs are the foundation of any good partnership. We’ve all seen briefs that are less than helpful, from vague descriptors to zero deadlines, briefs can cause all sorts of misalignments. We wrote all about the dos and don’ts of creative briefs here. But we wanted to ask our LinkedIn network what they can’t stand in creative briefs. Here’s what they had to say!

Clarity 👏 is 👏 key 👏

Make it make sense!!

This response makes us say wow!

Target Audience: Everyone.

Please ask yourself, do you really trust our judgment?

If you don’t know your audience, how will we know?!

Job ads can be just as telling as interviews. From tone to language, job ads can help you understand what the job culture and boundaries look like. From our Creative Circle audience to yours, here are the things you absolutely must know when applying for jobs. Save these job ad tips and your future self will surely thank you!