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Applying for Business Credit Cards [Consolidated]

Applying for Business Credit Cards [Consolidated]

Old Dec 15, 11, 1:50 pm
  #46  
 
Join Date: Oct 2011
Posts: 158
Applying for Business Credit Cards

Sorry if this has already been discussed here. I was not able to find a thread directly on point.

I have heard a lot of people mention that they apply for business credit cards. While I am sure a lot of people legitimately have businesses, I have read posts that indicate people simply use their own name as the business name, and apply as if they are a sole proprietorship. I have a few questions about this.

1. Is it really that simple? Is there no inquiry into your business finances or anything of that sort?

2. Does this effect personal credit at all? I read somewhere that although they will run your credit to determine creditworthiness, they will not report the open account on your credit report nor will they report balance information etc. So a "hard pull" will be done, but it will not impact overall debt ratio. Is this true?

3. How would this effect you if you wanted to open a business in the future? Obviously it would effect you to the extent that it effects your personal credit score, but if you had a business (this time registered as an LLC lets say, with a name that is not merely your own name) would there be any carry over between the two "businesses?"

Any other thoughts? Just kind of curious about this if anyone has done this.

Thanks!
Palaimo is offline  
Old Dec 15, 11, 10:48 pm
  #47  
 
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1. Yes it's that simple. Some banks will ask you for a bill with the businesses (your) name on it. Send a PDF or screenshot of your utility bill last month.

2. The business accounts with the three banks I have business cards with don't show up on my credit report. Not sure if inquiries do or not, but suspect they do.

3. Not at all. If you want a card for your business, get a separate personal card. There is absolutely no advantage to using a *small business* card (and some disadvantages - do a search), unless there is an offering on the business card that you can't get a personal version of (such as Cap1's Spark Cash where the personal card is 1.5% cash back vs business card 2% cash back).

When you have a real business that can stand on it's own two feet and has a history, THEN get a CORPORATE business card, which is guaranteed by the business.

A non-CORPORATE (ie SMALL) business card is guaranteed by YOU, not your business (or rather, not only your business).
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Old Dec 16, 11, 8:35 am
  #48  
mia
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You may wish to review these threads:

http://www.flyertalk.com/forum/credi...nal-cards.html

http://www.flyertalk.com/forum/credi...-business.html

http://www.flyertalk.com/forum/credi...ness-amex.html
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Old Dec 16, 11, 3:05 pm
  #49  
Formerly known as gwhit21
 
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My business card apps all have resulted in inquiries on my personal credit report.
TheNoobTraveler is offline  
Old Dec 16, 11, 3:19 pm
  #50  
mia
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Originally Posted by gwhit21 View Post
My business card apps all have resulted in inquiries on my personal credit report.
Correct, but the resulting account typically does not appear on your personal credit report, unless you default.
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Old Dec 17, 11, 11:30 pm
  #51  
 
Join Date: Jun 2011
Posts: 52
Using a business tax ID number in CC applications

A search of this forum didn't provide pertinent information; I apologize if this is a repeat question.

I'm curious about the impact and function of having a business card registered to a separate tax ID (i.e., not a sole proprietorship registered with a social security number). Here's what I want to know; thanks in advance if you can answer any of these questions.

1) If I apply for a business card with my business tax ID, is that application linked to me and my personal credit history, or is it separate?

2) If my business receives rewards (miles, points, cash back, etc.) with a credit card in the name of the business, do those rewards legally belong to me or to the business? Is there anything shady about spending those rewards on myself personally (i.e., not for business purposes).

3) If my business receives awards with a card in the name of the business, am I legally obligated to report those rewards as income? I have seen this question discussed for personal cards, but not for businesses.

Cheers!
poemadept
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Old Dec 17, 11, 11:40 pm
  #52  
 
Join Date: May 2002
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Most business credit/charge cards applications are subject to the applicants personal credit history inquiry and if you read fine print each user is responsible for their own charges...but issuer does not post on the individuals credit report the card pay history like a normal credit card.



That leaves true corporate cards credit/charge cards that are different but I doubt the requesting CFO of true corporate card would post on flyertalk.... They have no personal guarantee.....Think GE, NBC, GM, ABC, etc.
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Old Dec 18, 11, 6:50 am
  #53  
 
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Most small business cards are attached to your personal credit. However, there are business credit reports, the most popular is Dun & Bradstreet. But you'll know if the card is business liability because they'll be asking you for your DNB information, and also, not ask for your personal SSN. IIRC, Staples CCs are corporate liability. AmEx Corporate cards for very large businesses.

Try googling "business cards without personal liability"
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Old Dec 18, 11, 1:46 pm
  #54  
 
Join Date: Jun 2011
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I have a small company, S corp. with 4 employees and about 600K revenue. I have 3 company cards all received this year, CITI, INK Bold, and I forget what. No one asked for a SS number, it was all about the EIN number. Lighting fast to get and the Chase Bold was instant even though I already had UA, Sapphire, Hyatt, BA, none of which was older than a year and three in the last 3 months.
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Old Dec 18, 11, 10:09 pm
  #55  
 
Join Date: Oct 2011
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Thanks for the info.

One other question - is the credit requirement higher (generally) for business cards than it is for personal cards? Am I more likely to get denied for that business card?
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Old Dec 20, 11, 3:53 pm
  #56  
Formerly known as gwhit21
 
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Originally Posted by Palaimo View Post
Thanks for the info.

One other question - is the credit requirement higher (generally) for business cards than it is for personal cards? Am I more likely to get denied for that business card?
From my personal experience it has been the same. I always keep my credit over 740,though.
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Old Dec 20, 11, 11:25 pm
  #57  
 
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Originally Posted by gwhit21 View Post
From my personal experience it has been the same. I always keep my credit over 740,though.
Same experience, same score maintenance.
2tall4economy is offline  
Old Dec 21, 11, 9:11 am
  #58  
 
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I was filling out the online application for the Ink Bold card. It was asking for the business as well as the personal address. Can anyone tell me which address Chase sends the card to?
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Old Dec 21, 11, 9:49 am
  #59  
 
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Originally Posted by mmaoao View Post
I was filling out the online application for the Ink Bold card. It was asking for the business as well as the personal address. Can anyone tell me which address Chase sends the card to?
Can't directly answer your question, but I used the same address for both.
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Old Dec 21, 11, 5:49 pm
  #60  
 
Join Date: May 2011
Location: Spring, Tx
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Credit Card for Business

Can someone help me? I have a small side business that does not generate alot of income. If I apply for Credit Card under business, do they inquire about business income etc. Or do they use my personal credit to make a determiniation. Thanks
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