Should Gig Workers Consider a Business Credit Card?

Freelancing has become a major part of the U.S. economy, with over 60 million Americans working as freelancers in 2023. If you're a gig worker, getting a business credit card can help manage your finances, cover costs, and earn rewards. Here’s when and why you should consider getting one.

Starting out in freelancing often requires an investment. From buying new equipment to subscribing to essential software, these costs can add up quickly. A business credit card can help manage these expenses without straining your finances. Bonuses and rewards programs offered by many business credit cards can provide a helpful cushion as you get your business off the ground.

Keeping business and personal expenses separate is crucial for budgeting and tax purposes. A business credit card simplifies this process, making it easier to track your spending. For instance, when I was a freelance writer, I often drove to various locations for interviews. Sorting out which gas expenses were for work was a hassle. A business credit card can make this distinction clear, easing the burden during tax season and improving your budgeting.

As your freelance work grows, so do your operating costs. Maybe you started by renting out your guest house on Airbnb occasionally, but now you want to renovate it into a full-time rental property. A business credit card can help manage these larger expenses, such as construction costs and additional supplies. Opt for cards with a 0% introductory APR period to manage these big purchases without paying immediate interest.

If your freelance gig involves a lot of travel, a business credit card can help you earn rewards on your travel expenses. Many business credit cards offer cash back or points on gas, flights, and hotel stays, making your journeys more rewarding.

A business credit card can be a valuable tool for managing expenses and earning rewards as a freelancer. Whether you’re dealing with startup costs, keeping your finances organized, scaling your business, or traveling frequently, the right card can make a big difference. Choose a card that fits your unique needs to support your freelancing journey and help you thrive in your gig work. Embrace this financial tool to streamline your operations and maximize your potential as a gig worker.