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Applying for Business Credit Cards [Consolidated]

Applying for Business Credit Cards [Consolidated]

Old Jul 29, 12, 2:44 pm
  #136  
 
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Originally Posted by BigLar View Post
I know it's an older thread, but things have changed a bit with the new laws.

I already have a Citi Visa and Amex - got them a couple of months ago. I just got an email (targetted) offering me a CitiBusiness AAdvantage World Master Card. 35K bonus (which is really all I'm interested in - this is FT, after all).

Anyhow, it's been at least 60 days since I applied for the other cards and, well, they did invite me, so...

How tough are they these days on business apps? I would be a small personal biz, $0-$25K income, SSN (no EIN), etc. I would have no problem making the spend ($1500/3 months) and the bonus would put me just about within grasp of our next big eurotrip.

Go for it? Fuggeddaboutit? What's the consensus these days?
At least for me, Citi was a huge hassle. I sent them my EIN, no good. I sent them my business license from NYC, no good. I sent them something else, no good. Finally I sent my business checking account statement and the card was approved. (I was just starting up so I didn't have a statement available when I first applied.)

All that said, my wife applied as a sole proprietor in her own name and was immediately approved. My business has its own name that's different from mine, which may have been what caused the hassle.

Good luck!
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Old Aug 8, 12, 8:10 pm
  #137  
 
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Business Cards: Making it seem like you have less credit than you actually have

It just occurred me that there may be "strategic reasons" for applying for business cards.

Since business cards do not appear on your credit report (except for the initial hard pull), it makes you look like you have less credit and account than you actually have.

I was thinking that this might be good for people who are worried that card issuers may do a "Chase" on them, especially if they open too many cards recently, or have too many cards relative to their credit history age.

Does this strategy make sense, i.e. to focus more applications on business cards when you think you might be flagged.
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Old Aug 9, 12, 5:02 pm
  #138  
 
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Is your goal just more credit lines or rewards? If the later, the business reward cards are not as meaty as the personal ones.
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Old Aug 9, 12, 8:49 pm
  #139  
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One positive thing is one can put higher utilizations (percent of statement balance relative to credit limit) on the business cards and it would not affect your credit scores unlike personal cards.

On one of my wife's cards, we charged last month over 40% utilization on her Sapphire card (I am an authorized user on her Sapphire) and my score dropped 9 pts. Since I am in the high 700's/low 800's, the drop was not a big deal. That is with some CC churning as our (wife & I) average age of accounts could be better. Our credit files are fairly thick (mine thicker since I have lots of mortgages in my credit report.

I just completed 2 refinances on 2 of my rental houses and the small score drop was not an issue. My mid bureau score was 788 so my loans went thru with no issues.

We rotate between her Sapphire & Starwood AMEX cards. Those are our "go to" cards when we are not trying to make minimum spends. Her Starwood AMEX is the biz version so we can max that out and no impact on her credit score.
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Old Aug 19, 12, 2:01 pm
  #140  
 
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Is being a landlord for our second home a business?

I have the SW personal card and want to get the business, would my renting our second home count? We use an agency and they take a monthly %, plus I pay for repairs on the property. It does not make a lot of money by itself though, do I put my total income or just the income from the rental? I am 32K short of the companion pass and would like to get it if possible using this card. Thanks!
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Old Aug 19, 12, 2:07 pm
  #141  
mia
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Almost anuything can be characterized as a business for credit card application purposes. The issuer is not really interested in it, but they are required to ask to justify issuing a business card, because many consumer protections do not apply. If you keep accurate records of the rental income and expenses and they are accounted for on your tax returns this is as good a "business" as any other for this purpose.
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Old Aug 19, 12, 2:13 pm
  #142  
 
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I get monthly statements from the agency, and I have receipts for the termite contracts/pest control, HOA, etc. So I guess that counts then. It actually would be nice to have everything on one card as it is scattered over several right now. Thanks!
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Old Aug 19, 12, 8:40 pm
  #143  
 
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My only experience with biz cards is with Amex, and they are very non-exacting about the "business." However if you want to make it seem a smidge more legit, get an Employer Identification Number. You can get them online from the IRS (and no, there is nothing "fradulent" about getting an EIN if you don't have a business, but you do anyway). I don't know anything about Chase's standards for "business" cards.
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Old Aug 19, 12, 9:01 pm
  #144  
 
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Do you file your income from your rental property as a business? My guess is no. You most likely reported it as ordinary income on your tax return (and fill out some additional schedules) and it has certain tax benefits (deductions) when it comes to repairs and expenses.

I wouldn't consider it as a "business" in the context of credit card apps. That said, I'm no expert in this matter.
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Old Aug 19, 12, 11:54 pm
  #145  
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Originally Posted by BOShappyflyer View Post
Do you file your income from your rental property as a business? My guess is no. You most likely reported it as ordinary income on your tax return (and fill out some additional schedules) and it has certain tax benefits (deductions) when it comes to repairs and expenses.

I wouldn't consider it as a "business" in the context of credit card apps. That said, I'm no expert in this matter.
Your assumption is wrong.

Credit card application has NOTHING to do with tax reporting.

OP, mia gives you a very good answer. Your rental property is as good as any business can get.
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Old Aug 20, 12, 12:02 am
  #146  
 
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Originally Posted by bakablonde View Post
I have the SW personal card and want to get the business, would my renting our second home count? We use an agency and they take a monthly %, plus I pay for repairs on the property. It does not make a lot of money by itself though, do I put my total income or just the income from the rental? I am 32K short of the companion pass and would like to get it if possible using this card. Thanks!
Worked for me for I-Bold and Starwood and United and Citi!
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Old Aug 20, 12, 5:50 am
  #147  
 
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Well I applied, and got a "Wait for it" response...if that does not work I will try the SPG biz card next. I already have 6 Chase cards so I guess that is part of the delay. Thanks everyone and I will keep my fingers crossed!
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Old Aug 20, 12, 8:05 am
  #148  
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Originally Posted by bakablonde View Post
Well I applied, and got a "Wait for it" response...if that does not work I will try the SPG biz card next. I already have 6 Chase cards so I guess that is part of the delay. Thanks everyone and I will keep my fingers crossed!
Call the Chase reconsideration line today and ask if they need any more info. You may have to move some CL from existing cards to the new one or maybe close one of your existing ones. Try 1-800-453-9719 Chase Bus. Recon. # They are pretty flexible.
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Old Aug 20, 12, 5:05 pm
  #149  
 
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From a tax lawyer...

Rental income is almost always passive income (as opposed to active income, which normally includes wage, salary, and self employment, and portfolio income)...Unless you rent power tools for example, where you are in the rental business but you by definition are making money from your efforts more than from the capital asset itself...It is POSSIBLE to be in the business of renting residential real estate but it would require active management, which you clearly do not perform...

FYI if you or your wife assuming filing jointly have a real estate license then you can possibly qualify as a "real estate professional" which you should look up online and read up on...

To answer the question whether your situation is a "business" for purposes of credit card applications, unless the term is defined in the application...then I will answer your question Socratically...

"When the application asks for your income, do they mean taxable income? AGI? Gross? As defined by federal income tax accounting (which would exclude non AMT municipal bonds)? Do they mean economic income? Did you ever stop and worry exactly what they meant by income?

Then why are you futzing over what they meant by business?
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Old Aug 20, 12, 6:25 pm
  #150  
 
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I am a LL, open a Chase Checking Business Account, they will give you $250.00, the promotion may still be on. We all started with one property. I have 100 plus leases, and do it part time.

The new CC is for tracking property expenses. SW INK, Sapphire, even Citi will do it for you.

My CPA calls it a business, and so does my Chase Rep.
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