I applied for my first credit card in a while today. I was letting my credit reports “cool off” a little bit, which really isn’t necessary, but I’m trying to be a bit more selective in the cards I apply for. I applied for the CitiBusiness / AAdvantage
Platinum Select World Mastercard today and was instantly approved. That was a little surprisingly because a lot of times with business cards you get a pending status and need to call in or at least wait a week or two to be approved.
The bonus on this card is 50,000 miles after $3,000 spend in three months and then another 15,000 miles after a total of $10,000 spend in the first year. The annual fee of $99 is waived the first year. I value AA miles at about 1.5 cents a piece so you are looking at about $1,000 worth of flights for this bonus.
When applying, I just used my name for the business name. I’ve sold a few hundred dollars worth of items on eBay in the past year so I put that down as my revenue and used my social security number as the tax ID number. As I’ve mentioned before, you would be surprised at what qualifies as a business.
The great thing about business cards is they don’t show up on your personal credit report. This is especially important when it comes to staying under Chase’s 5/24 rule, i.e. you can’t be approved for any Chase card if you have been approved for more than 5 cards from any bank in the past 24 months. Chase generally has the best bonuses so I do my best to always be under 5/24. With business cards, though, I can open as many as I want (except for those from Capital One, Discover and TD Bank as those do show up on your personal credit report) and Chase won’t see them on my credit report.
If you really don’t have anything that qualifies as a business, Citi also has a personal AA card that offers a bonus of 60,000 miles for $3,000 spending in three months.
Another great thing about Citi AA cards if they are churnable, meaning you can get the bonus on them more than once. Here’s what the terms say for the personal card: American Airlines AAdvantage® bonus miles are not available if you have had any Citi® / AAdvantage® card (other than an AAdvantage MileUp℠ or CitiBusiness® / AAdvantage® card) opened or closed in the past 24 months. It’s the same deal for the business card. If you haven’t opened or closed a Citi AA card in the past 24 months, you can apply and get the bonus again.
My strategy with my new card will be to keep it open for 10-11 months, enough time to spend the $10,000 to get the full bonus and to not piss off Citi by looking like a bonus chaser (even though I am one) by getting the bonus and then closing it right away. Once I close it, I will make a note on my credit spreadsheet to apply for it again in two years.