Business Credit Cards

7 Replies

Hello,

I have a 2.5yr old corporation, and a PayDex score of 80. I am looking to get a business credit card but they are all asking to run my personal credit. 

Are there any business credit cards I can acquire just using my EIN? Or a no personal guarantee?

Honestly, we ran into this. Most business credit cards want to have your personal gaurentee on file just in case. The only way to avoid this is if you're a larger publically traded company, they tend to have other options for you. 

@Colton S. I guess the npg is a myth. What business credit cards have the best approval rate for beginners? Thank you for replying.

My Capital one Spark card is awesome. Like literally, awesome. 2% cash back on all purchases, and $500 if you spend $4500 in 3 months. Plus I got approved right out the gates with a brand new business at 10k.

Colton,
I was just approved for a business $2k business cc with Capital One Spark. Thanks for the recommendation! Question, how were you able to get $10k off the bat? 
I have a Corp., and a paydex of 80. Personal credit score of 702. Any info you can give would be much appreciated. 

Capital One Spark "Business" will report to your "personal" credit profile which literally defeats the real advantage of a REAL business credit card like Amex Business or Citi Business  ...meaning not screwing up your utilization ratio if you go over 30% up 100% max out on your business card.  Since a REAL business CC does not report on your personal credit (UNLESS YOU DEFAULT Ofcourse) you can Max out the card all you want and you wont take a 50-75pt Fico hit like you would if you maxed out a personal card. 

Ive been getting mixed feedback on buying property with business credit, some saying the banking system wont allow it etc What are the steps to buying houses and investing with business credit??

Bank of America does not report my business credit card account on my personal credit. I currently have 2 with them under my businesses ( 2 separate EIN's) and I had to guarantee the accounts. I was worried that the utilization might have an affect on my score as I am very particular about my personal credit ( 807-830) but I have monitored all 3 credit bureaus and none of them even show these accounts as open accounts. I also have a personal CC with BofA and this one of course shows as an open account on my personal credit. I'm sure if I was default on these business accounts for a period of time they would end up getting reported to my personal credit report, but as long as I am in good standing then no affect. 

For reference: the cards I have are the Alaska Airlines CC's

Now for my question and the reason I found this post. The reason I have 2 cards is because I started a company last Summer and got the first card November and BofA opened me with a $10k line. I had a big order come through in February and asked for an approval for a one time charge fo $30k. BofA asked if I wanted to see if they could just increase the line and I agreed. ( they did do another credit check, but it must have been a soft pull because it never showed on my report). They ended up giving me a $40K limit. I just paid that $30k balance off last week before interest on that statement would take affect. Last month I also formed a corporation and since it was a new entity I had to start all over with a new EIN, bank accounts, credit cards etc. I have opened another CC at $10k under the corporation and will only be using this card moving forward. 

What do I do with my $40k line that is under the sole prop name? I am not going to close it and plan to hang onto it as a backup. But can I buy real estate with this for flips? ( there is no promotional APR so it has to be short term investments). If I time it right I can get 60 days of interest free money. Does buying real estate with the business card open up my corporation to liability or since this card is not in the corporation name is it only me personally as the owner of the previous sole prop?

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here