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Thread: Business Credit

  1. #1

    Default Business Credit

    I recently started a side business for my web design hobby. I obtained my EIN and opened business checking & savings, my question is whether or not I should get a credit card? I was looking at the Capital One Spark Classic, because it's geared towards Fair / Good credit. My personal scores are awesome but I basically have zero business credit. Should I hold off for now on the credit card? Some say wait two years.

    Feedback please!


    PS. Head on over and check out my Portfolio website: www.josephkrahn.com

  2. #2

    Default Re: Business Credit

    BUMP! Does anyone have feedback on this??

  3. #3

    Default Re: Business Credit

    Quote Originally Posted by Joeyman View Post
    BUMP! Does anyone have feedback on this??
    What to say?

    My experiences include JP Morgan Chase Business "Ink" Visa with the benefits of the "Freedom Card" all rolled in to one with excellent business expense reporting capabilites (awesome); interest at 12.24% purchases, cash at 19.24% along with great rewards and a CL of $10K where there service has been top notch (real people that you can understand) and they do not report to the personal credit bureaus. Of note, they change their program from time to time and today it is 10.24% purchases and 19.24% cash and you may be able to get the no-preset spending limit (couldn't get it when I started with Chase many years ago 2005). Also, Chase has Ink Classic No AF and Ink Bold Charge Card with a $95 AF that have travel benefits.

    Have had Capital One with two different business cards with $10.6K CL and 7.9% apr purchases and 15.9% cash fixed rate no AF to one card with $6K CL and 12.9% apr purchases and 17.9% cash variable with a $29AF with great balance transfers options. Closed the Capital One business cards when they jacked my rates to 23.9% and started reporting to the personal credit bureaus (back when many of the card issuers got really strange from the economy). I always PIF or way over the minimum and had many good long years of experience back to 2001. Capital One is not my favorite since they seem to not want to work with a person.

    Of note, that Citi Bank has a Citi Bank Business World Master Card (Cash Rewards) with no pre-set spending limit that looks good along with other offerings that include travel rewards (never had a Citi Business Card) only personal cards and very happy with them.

    No experience with Bank of America and I am not a fan of the current day BofA/FIA collaboration. Have a BofA Credit Card and they will not increase the credit limit. Never had a BofA Business card.
    Last edited by Wanderer; April 10th, 2012 at 04:23 AM. Reason: Supp info

  4. #4

    Default Re: Business Credit

    Thanks for the reply!

    I mentioned that Capital One card because the chances of me getting approved seemed the greatest. I have zero business credit. I was wondering whether or not they just use my personal credit report? I know they pull it, but does it make a difference? If I could choose any creditor Amex would be top choice. I have had such great customer service and love the website, so it's a no brainer for me (I know some people dislike Amex, which is fine).

    My credit union advised me to wait two years. Because the business is just me as a sole-prop I think I agree... All my work is contract based and is up and down. The loss is only time. I didn't need any loans etc.

  5. #5

    Default Re: Business Credit

    Quote Originally Posted by Joeyman View Post
    Thanks for the reply!

    I mentioned that Capital One card because the chances of me getting approved seemed the greatest. I have zero business credit. I was wondering whether or not they just use my personal credit report? I know they pull it, but does it make a difference? If I could choose any creditor Amex would be top choice. I have had such great customer service and love the website, so it's a no brainer for me (I know some people dislike Amex, which is fine).

    My credit union advised me to wait two years. Because the business is just me as a sole-prop I think I agree... All my work is contract based and is up and down. The loss is only time. I didn't need any loans etc.
    Totally forgot. Yes, I did have an American Express Business Charge Card and an American Express Revolving Credit Card. They took great care of me and I liked their products. AX has changed their cards some but, I had an AX Platinum Centurion Card revolving credit line of $20K at 17.9% purchases apr with an AF $??? and an AX Platinum Business Charge Card with $450 AF. They were the best.

    In the old days before the credit meltdown Capital One did not use your personal credit report unless you didn't pay. After the meltdown, they report monthly to your personal credit reports. Most business credit providers used Dunn & Bradstreet for business credit reporting and did NOT use your personal credit reports unless you didn't pay. Capital One is the only one I am aware of who uses personal credit reports. Note, business credit reported on your personal report will act like a personal credit card. Also, I found there were times when having a business checking and savings account with a business credit card kept everything seperate. As a sole prop it worked to keep things seperate in my life and taxes.
    Last edited by Wanderer; April 10th, 2012 at 04:31 AM.

  6. #6

    Default Re: Business Credit

    Quote Originally Posted by Wanderer View Post
    Also, I found there were times when having a business checking and savings account with a business credit card kept everything seperate. As a sole prop it worked to keep things seperate in my life and taxes.
    Exactly. Keeping everything separate is my goal. I have the business checking and savings but still find myself wanting to use a credit card, perhaps I should just apply for a business card and see what happens?

  7. #7

    Default Re: Business Credit

    Quote Originally Posted by Joeyman View Post
    Exactly. Keeping everything separate is my goal. I have the business checking and savings but still find myself wanting to use a credit card, perhaps I should just apply for a business card and see what happens?
    As a followup, check out JP Morgan Chase, Citi Bank, First National Bank Omaha, American Express and possibly a credit union in addition to Capital One so you have a feel for the available business bank card programs. Also, maybe you can sense what might be your sucess in applying.

  8. #8

    Default Re: Business Credit

    UPDATE: So I had decided not to get business credit, however today I accumulated a fee due to me not watching my new checking account! It was for a reoccurring transaction that I forgot about. I thought to myself, "this wouldn't happen if I was just using a credit card?"

    So yup, I applied for the Capital One Spark Classic and got approved for a $2k limit. Not bad for zero business credit, although they do poll personal reports too. I picked this card because I feared nothing else was reachable with such new credit.

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