Side hustles

Ways a new credit card can boost your side job

These days, many of us wear different hats to earn income on the side. Such “gig economy” work can make for a stressful tax season that eats up your time. A separate credit card for business purposes can help simplify things and offer value to your side hustle.

1 Simplify the paper trail

Using a separate credit card for your side business can save hours over sorting personal from business expenses, and prevent you from missing valuable deductions. You’ll still need receipts, but your expenses can easily be found and backed up. Whether you get a business credit card or a regular credit card for business purposes depends on your goals and expenses. Some business credit cards take your personal credit score into consideration, so you’ll likely need a good credit score for either option. Whichever you choose, if there’s an annual fee, make sure the perks and rewards offset it.

2 Help with business expenses

Getting started may require out-of-pocket investments. Applying for a separate credit card can snag you a sign-up bonus or a zero-percent introductory interest rate that helps defray or finance those costs, and ongoing rewards can maximize your income if they align with your spending. For Nicole Elizabeth, content creator at the blog N Elizabeth, a flat-rate business credit card made sense when she started her sticker shop on Etsy. Elizabeth earned rewards on large, one-time investments like her cutting machine, printer and computer — essentials for making her stickers. She now earns rewards on recurring expenses such as paper, ink, toner and blog-related purchases. “I get 1.5 percent back on everything,” she says.

3 Double-dip on rewards

• Ride-hailing drivers. A credit card that earns a high rewards rate on gas can add up to hundreds of dollars annually for drivers.

• Airbnb hosts. A rewards card that earns 5 percent back on spending categories that change quarterly could offer a significant return on any number of purchases to furnish or spruce up your Airbnb property.

• Pet sitters. A flat-rate credit card that earns 2 percent back on all purchases can offer value at the pet store, or anywhere else.