Thread: Business Credit Cards

I believe my dad's business card is an AMEX as well.

...and that's about the extent of my knowledge on the subject.


Gee, insightful post. Guess I just like hearing myself talk...

I use AMEX business. I use it to get several discounts and then pay it off every month. No fee and zero interest if you pay it off. 5% off gasoline purchases.

I would assume that if you are personally guaranteeing the card that it would run off of your credit record at least for a while. I would think that would be the only way to get the credit at first.

I have Cap One, and thats only because i know a manager there so if i have a mishap i can get it corrected. I do not have any rewards nor do i care. I did have to personally guarantee it though and did not get it until i was past the 2 year mark.

Originally Posted by JScott

I assume that all business CCs will require a personal guarantee (assuming you don't yet have business credit established for at least a couple years), and I also assume that a business CC won't hit your personal credit report...are both of those statements accurate?

Also, does anyone have more than one business CC? Are there advantages or disadvantages?

Most business CC's will require a personal guarantee, but there are several that don't, but as you assumed correctly, they require you to have business credit established.

Most business CC's will not show up on your personal report, but there are a few that will. Only about 50% of business CC's will report to your business credit report.

I have several different business CC's. There are no disadvantages, only advantages.
You can never have too much credit.

Always make sure you establish a lot of credit when you don't need it, because when you do need it, no one will give it to you.

Agree with Peter2. I have several and I'd venture to say AMEX is probably the best overall.

Also, depending upon what you are looking to do, don't limit your horizon to business credit cards. Many vendors (BP, Staples, Dell, etc) will offer you credit with no PG and report to your business credit (a good thing). Also, consider lines of credit for the business - you'll generally get bigger lines, better terms and begin to establish a relationship with a bank that could prove fruitful when needed (buying real estate, etc).

Good luck!

Originally Posted by JScott

Thanks everyone for the great advice!

Here's what I'm planning to do, in terms of starting to build credit for my business (and establish credit lines):

- Ordered my Amex CC today (only got $10K limit to start, but we'll work on that)
- Will order an Advanta card tomorrow
- Will set up a DNB account this week
- Will start setting up accounts at the places I do my "business shopping" (Home Depot, Staples, etc)
- Will talk to my banks about establishing an LOC (perhaps secured against some cash)


Thanks!

What's "DNB"? I only know of a DMB (Dave Matthews Band)...

Originally Posted by Yankees338

What's "DNB"? I only know of a DMB (Dave Matthews Band)...

Dun & Bradstreet. D&B- Dun & Bradstreet -Global Risk, Credit, Sales, Marketing, and Supplier Management Solutions

Originally Posted by Peter2

Dun & Bradstreet. D&B- Dun & Bradstreet -Global Risk, Credit, Sales, Marketing, and Supplier Management Solutions

Thanks. I'll look into them. Ironically, their company headquarters is literally right in my backyard (right on the other side of my neighborhood).

D&B and Experian are to business as Equifax, Experian and Transunion are to consumers.

FYI - when setting up your D&B account - if you do it over the phone or if you get cold-called from them they'll probably try to sell you on their "credit builder" product. I'd suggest you might want to do a little research on it. Some consider it a waste of money while others have benefited from it. Personally, I've experienced both sides - you can build your business credit slowly, but if you need to get jumpstarted - perhaps creditbuilder ($399 when I paid for it) is reasonable.

I have an Advanta card for my Corp and First Equity for my LLC. Also Dunn and Bradstreet is a must to build company credit for lines of credit and such. Watch out for those that guarantee you getting business credit for "only 995.00" They are out there like flies. Contact D&B yourself for the same effect. I dont know if the 395.00 credit builder really makes a difference or not but you get to see your business rating right away.