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Applying for Business Credit question

khb
New Member

Applying for Business Credit question

I incorporated 2 weeks ago and since then I've gotten my EIN, as well as the BIN (state ID number.)  I've opened a business checking account and they gave me a $5,000 line of credit.  I have two personal credit cards I was planning on using exclusively for the business.

 

My question is, there is no money as of yet coming into the business, should  wait until there is revenue to apply for a business credit card?

 

And which one should I apply to that does not report to my personal credit?

 

Thanks!

Message 1 of 17
16 REPLIES
Established Contributor

Re: Applying for Business Credit question


khb wrote:

I incorporated 2 weeks ago and since then I've gotten my EIN, as well as the BIN (state ID number.)  I've opened a business checking account and they gave me a $5,000 line of credit.  I have two personal credit cards I was planning on using exclusively for the business.

 

My question is, there is no money as of yet coming into the business, should  wait until there is revenue to apply for a business credit card?

 

And which one should I apply to that does not report to my personal credit?

 

Thanks!


No! Don't wait. Business credit cards are somewhat different than personal cards. Projected revenue is acceptable to most business credit card issuers especially if you have EIN and business bank accounts (legit business not just a person hacking cards for bonus offers). No matter what all business cards will check your personal credit (a hard pull) but all of the good cards will not be reflected on your personal report unless you default. 

 

What cards you apply for should be based on what you want from the card. Just general usage with general rewards? I suggest Chase Ink cards. Also an AmEx charge card is a great option as long as you can pay in full monthly (and as a business owner you should be making sure you can do this so you are not paying interest). If you want hotel points or airline points check out your favorite airline or hotel and see if they offer a business version of the card - many do. 

 

Let us know what kind of rewards you are looking to get and we can offer some suggestions. 

Message 2 of 17
Epic Contributor

Re: Applying for Business Credit question

Who gave the line of credit??

 

Chances are you got a line of credit on a brand new business checking account??? a credit card is usually WAY easier... go to same bank!

also for sure apply apply apply for business credit now to build the business... don't use these 2 personal cards you talk of.

Message 3 of 17
khb
New Member

Re: Applying for Business Credit question

I got the line of credit through our credit union.  They offered that to me after I asked about a credit card for the business instead.

 

I am thinking about the Chase Ink card, any thoughts?

Message 4 of 17
Epic Contributor

Re: Applying for Business Credit question


khb wrote:

I got the line of credit through our credit union.  They offered that to me after I asked about a credit card for the business instead.

 

I am thinking about the Chase Ink card, any thoughts?


What credit cards do you currently have?

limits?

what was your score from Credit Union?

Message 5 of 17
khb
New Member

Re: Applying for Business Credit question

The two I was going to use for the business are:  USAA - $15,000 & Credit Union CC $10,000.  My score was 747 when I applied for the business checking account at the credit union.

Message 6 of 17
Epic Contributor

Re: Applying for Business Credit question


khb wrote:

The two I was going to use for the business are:  USAA - $15,000 & Credit Union CC $10,000.  My score was 747 when I applied for the business checking account at the credit union.


oh goodness, you should be instantly approved for chase if that's what you want!

Message 7 of 17
Established Contributor

Re: Applying for Business Credit question

Ink cards are great. The Bold and Plus are the same card with the same perks and points. Difference is the Bold is a charge card and is due every month but has no specific hard limit (kinda like and AmEx charge) and the internal limit will grow with you. Use it more and you have access to more spending power. The Plus has a hard limit like a regular credit card and can revolve a balance if needed. 

 

You can have multiple Ink cards. I have the Cash, Bold and Plus. 

Message 8 of 17
khb
New Member

Re: Applying for Business Credit question

Do you think there will be a problem since I do not have any accounts with them?  I want to keep my checking account with my local credit union.

Message 9 of 17
Epic Contributor

Re: Applying for Business Credit question


khb wrote:

Do you think there will be a problem since I do not have any accounts with them?  I want to keep my checking account with my local credit union.


No, it's purely credit driven for approval.

Message 10 of 17