Business credit cards recommendations to build credit!

Member since 2023 · 20 posts · 22 votes

Hello everyone! I recently started my LLC and want to build my business credit. Your business credit card recommendations would be much appreciated....

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Doug SmithPro Member

Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes

I'm a lender with 32 years under my belt and a formal commercial credit background from two of the largest banks in the world as well as community banks. The only reason I tell you that is that I'm going to tell you something that might sound really odd...your business credit doesn't matter for a real estate investor unless it's bad. We pull personal credit on you as the guarantor, but we expect that your LLC is simply a real estate holding company...so we don't expect it to have a business credit rating. If you're a larger operating company like a widget manufacturer, then yes, they'll pull a D&B, but having business credit doesn't really enter onto our radar unless you don't pay your bills. I'm happy to elaborate if you have specific questions, but if you're trying to finance a flip, new build, or a rental-type loan like a DSCR, we typically wouldn't pull a D&B. I do how that helps.

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Rachel Hutton
Real Estate Agent · Prince Frederick, MD · Member since 2021 · 5 posts · 6 votes
3y
I have the Chase Business Ink and I love it so far. It's not as great for travel points or perks as some, but cash back points are great and amass pretty quickly. I went down a rabbithole and spent like 3 full days comparing cards and this one was the best one for what I needed. If you need a higher credit limit-like if you're getting ready to drop 30k furnishing an STR or something- there may be other cards that are more advantageous, for my operating expenses this one is perfect. Hope that helps, go get it sister!
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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
You want to get a credit card that reports to D&B and does not show up on your personal credit.
2 Reply
Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
@Renee Williams
We have a capital one card.
I recommend capital one or chase
7e investments53 Reviews
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Doug SmithPro Member
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
3y
I'm a lender with 32 years under my belt and a formal commercial credit background from two of the largest banks in the world as well as community banks. The only reason I tell you that is that I'm going to tell you something that might sound really odd...your business credit doesn't matter for a real estate investor unless it's bad. We pull personal credit on you as the guarantor, but we expect that your LLC is simply a real estate holding company...so we don't expect it to have a business credit rating. If you're a larger operating company like a widget manufacturer, then yes, they'll pull a D&B, but having business credit doesn't really enter onto our radar unless you don't pay your bills. I'm happy to elaborate if you have specific questions, but if you're trying to finance a flip, new build, or a rental-type loan like a DSCR, we typically wouldn't pull a D&B. I do how that helps.
8 Reply
Renee Williams
OP
Member since 2023 · 20 posts · 22 votes
3y
Quote from @Chris Seveney:

@Renee Williams
We have a capital one card.
I recommend capital one or chase
Thank you, Chris!
0 Reply
Renee Williams
OP
Member since 2023 · 20 posts · 22 votes
3y
Quote from @Rachel Hutton:

I have the Chase Business Ink and I love it so far. It's not as great for travel points or perks as some, but cash back points are great and amass pretty quickly. I went down a rabbithole and spent like 3 full days comparing cards and this one was the best one for what I needed. If you need a higher credit limit-like if you're getting ready to drop 30k furnishing an STR or something- there may be other cards that are more advantageous, for my operating expenses this one is perfect. Hope that helps, go get it sister!
Awesome info, Rachel…. I found myself going down that same rabbit hole which is why I decided to ask. This sounds perfect for my current needs. Appreciate your input!
0 Reply
Renee Williams
OP
Member since 2023 · 20 posts · 22 votes
3y
Quote from @Doug Smith:

I'm a lender with 32 years under my belt and a formal commercial credit background from two of the largest banks in the world as well as community banks. The only reason I tell you that is that I'm going to tell you something that might sound really odd...your business credit doesn't matter for a real estate investor unless it's bad. We pull personal credit on you as the guarantor, but we expect that your LLC is simply a real estate holding company...so we don't expect it to have a business credit rating. If you're a larger operating company like a widget manufacturer, then yes, they'll pull a D&B, but having business credit doesn't really enter onto our radar unless you don't pay your bills. I'm happy to elaborate if you have specific questions, but if you're trying to finance a flip, new build, or a rental-type loan like a DSCR, we typically wouldn't pull a D&B. I do how that helps.
Thanks for taking the time to explain this, Doug! I was actually wondering and researching how business credit factored in and how much weight it held. This makes sense and is actually a relief. Appreciate you!
1 Reply
Renee Williams
OP
Member since 2023 · 20 posts · 22 votes
3y
Quote from @Eliott Elias:

You want to get a credit card that reports to D&B and does not show up on your personal credit.
Got it! Thanks, Elliot -
0 Reply
Paul Vail
The Triangle, NC · Member since 2021 · 193 posts · 117 votes
3y
One overlooked tool is the AmEx card from Lowe's. It is fee-free, and carries the automatic 5% off all Lowe's purchases. I used to work for the chain, and we promoted the card with other perks such as discounted delivery fees ($79 dropped to $20 for flatbed and truck drop offs), and perks with the Lowe's volume pricing tools for contractors and pros (where bulk purchases would be run through a pricing tool - sometimes with much more significant discounts than the 5%). I'm not trying to be a shill for the blue store - but it's a decent tool and far more useful and flexible than the in-house cards offered.
4 Reply
Crandall Thomson
Rental Property Investor · North and Central Texas · Member since 2020 · 12 posts · 26 votes
3y
Quote from @Paul Vail:
One overlooked tool is the AmEx card from Lowe's. It is fee-free, and carries the automatic 5% off all Lowe's purchases. I used to work for the chain, and we promoted the card with other perks such as discounted delivery fees ($79 dropped to $20 for flatbed and truck drop offs), and perks with the Lowe's volume pricing tools for contractors and pros (where bulk purchases would be run through a pricing tool - sometimes with much more significant discounts than the 5%). I'm not trying to be a shill for the blue store - but it's a decent tool and far more useful and flexible than the in-house cards offered.

Hey Paul, I agree with you. It is a very nice tool to have especially if you're the type of investor that is hands-on with rehabs, upgrades, and maintenace.
2 Reply
Adah N.
Investor · Atlanta, GA · Member since 2020 · 294 posts · 142 votes
3y
@Eliott Elias
Which credit cards do you know report on D&B and do not report on your personal credit?
1 Reply
Eric Mcginn
Real Estate Investor · Chico, CA · Member since 2016 · 248 posts · 105 votes
3y
Quote from @Eliott Elias:

You want to get a credit card that reports to D&B and does not show up on your personal credit.

Interesting, any examples?
1 Reply
Adah N.
Investor · Atlanta, GA · Member since 2020 · 294 posts · 142 votes
3y
@Renee Williams
Signature Fed CU has one that gives 2% cash back or 2 points for every dollar spent. No annual fees. You have to open a business account and they report to your personal credit.
1 Reply
Adah N.
Investor · Atlanta, GA · Member since 2020 · 294 posts · 142 votes
3y
@Doug Smith
Is it still prudent to build business credit anyway? For example establish a business credit and borrow just like any other non real estate business but use the funds for Real Estate?
1 Reply
Renee Williams
OP
Member since 2023 · 20 posts · 22 votes
3y
Quote from @Adah N.:

@Renee Williams
Signature Fed CU has one that gives 2% cash back or 2 points for every dollar spent. No annual fees. You have to open a business account and they report to your personal credit.
Thank you, Adah! 2% sounds like a win….
0 Reply
Renee Williams
OP
Member since 2023 · 20 posts · 22 votes
3y
Quote from @Paul Vail:
One overlooked tool is the AmEx card from Lowe's. It is fee-free, and carries the automatic 5% off all Lowe's purchases. I used to work for the chain, and we promoted the card with other perks such as discounted delivery fees ($79 dropped to $20 for flatbed and truck drop offs), and perks with the Lowe's volume pricing tools for contractors and pros (where bulk purchases would be run through a pricing tool - sometimes with much more significant discounts than the 5%). I'm not trying to be a shill for the blue store - but it's a decent tool and far more useful and flexible than the in-house cards offered.
Valuable info - thanks Paul! I had no idea….
0 Reply
Renee Williams
OP
Member since 2023 · 20 posts · 22 votes
3y
Quote from @Chris Seveney:

@Renee Williams
We have a capital one card.
I recommend capital one or chase
Appreciate your input!!
0 Reply
Paul Vail
The Triangle, NC · Member since 2021 · 193 posts · 117 votes
3y
Quote from @Renee Williams:

Quote from @Paul Vail:
One overlooked tool is the AmEx card from Lowe's. It is fee-free, and carries the automatic 5% off all Lowe's purchases. I used to work for the chain, and we promoted the card with other perks such as discounted delivery fees ($79 dropped to $20 for flatbed and truck drop offs), and perks with the Lowe's volume pricing tools for contractors and pros (where bulk purchases would be run through a pricing tool - sometimes with much more significant discounts than the 5%). I'm not trying to be a shill for the blue store - but it's a decent tool and far more useful and flexible than the in-house cards offered.
Valuable info - thanks Paul! I had no idea….

You're quite welcome. You can also issue cards for other staff (or family, if they are your staff) on the same parent account. Can help with expense tracking and make your accountant all hot-n-bothered with a precise paper trail.
0 Reply
Kai Kopsch
Real Estate Broker · Charlotte, NC · Member since 2016 · 569 posts · 351 votes
3y
@Renee Williams Business credit cards are not just to build credit a great tool to save some money on average, 1.5% to 2% on some categories, up to 5% on business travel 10% plus sign-up bonuses. Chase & AMEX and NavFed are the best to start with; stay away from capital one they report to your private credit history.
2 Reply
Stephanie Trotta
New to Real Estate · AZ · Member since 2023 · 9 posts · 1 vote
3y
Quote from @Adah N.:

@Eliott Elias
Which credit cards do you know report on D&B and do not report on your personal credit?
Hi, the key is getting an actual business credit card using the business's tax ID, not your social security number. If it's your first business activity, the bank or card company may require you provide a personal guarantee in case your business defaults or doesn't pay but the card is in your business's name using your business's tax ID so it'll report to D&B.
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