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Best credit card to start business credit ?

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pat0812
Regular Contributor

Best credit card to start business credit ?

Hi,

 

I have a business for about 2 years and we are doing great.

I don't pay anything with loans or credit cards. Everything in cash.

 

I want to start to build our business credit

What card should I apply first?

 

Both owners of the business, we have great personal credit (somewhere in the mid 700)

We have high limits (Over 60K on 6-7 cards each)

FICO 8's EX 770 EQ 751 TU 771 (1/16/17)
Amex Gold Premier rewards ( Charge Card)
Amex Blue cash - $47,800 Wells Fargo - $15,000 Citibank Simplicity - $13,800 Barclays Apple - $13,000 Walmart Mastercard - $8000 Chase Slate - $7,200 Discover It - $5,500 Capital One - $5,250
Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: Best credit card to start business credit ?

We have a business credit forum and that's where these posts belongs so both of your will be moved there.

Message 2 of 6
Anonymous
Not applicable

Re: Best credit card to start business credit ?

Where do you spend most for the business?  Chase, Amex and Citi have very good business cards.  I'd look into them if I were in your shoes.

Message 3 of 6
CreditUnionFan
Valued Contributor

Re: Best credit card to start business credit ?

If you're new to business credit you need not worry if you're familiar with your personal (consumer) credit. There are some additional questions and another set of credit reports, but through the responsible use of credit you can earn rewards and make larger purchases sooner than you otherwise might.

 

There's a term for Personal Guarantor (PG) which means your personal credit report will be checked and you are liable in the event the loan is not repaid. When you PG a business credit card, the business card may or may not appear on your personal credit. Some like the Amex business cards, Sams MC and Chase Ink may require a PG, and you'll see the inquiry on your personal credit report, but as long as the account is kept current, there will be no further entries on your personal credit report.

 

There are a few business cards that require a PG, and will also appear on your credit report every month, such as the Capital One business credit cards. Capital One also usually requests all three major consumer bureaus for a business account. But, if you're near a Capital One branch, their current promotion for 2% in cash or miles with no annual fee (normally $59 or more) is a sweet deal.

 

There are many cards that don't require a PG, and should never appear on your personal credit report. Most seem to be dedicated lines of credit for specific purposes but depending on your spending requirements, can still be useful. (e.g. Lowe's 5% off). The BJ's Mastercard is favored by many as a card that can be used anywhere MC is accepted and is available without a PG.

 

Take a look at the offers with your bank, credit union, and other card issuers. Think about where you would use the card and earn the best rewards. It may take time to build up a business credit file.

 

Depending on whether you have several new accounts on your personal report, with Chase planning to soon deny business applications where there are more than five new accounts in the past 24 months, those cards might be ones to start with. Ink Cash has no annual fee, but limits the 5% earned in bonus categories to $25k; paying the annual fee for the Ink Plus cards raises that limit to $50k. (you still earn 1% on purchases above that limit)

I was going to garden... Honest!
Message 4 of 6
Creditaddict
Legendary Contributor

Re: Best credit card to start business credit ?

With great personal credit I would do a Chase Ink and an American Express (charge card like Plum or Simply Cash)

Message 5 of 6
SouthJamaica
Mega Contributor

Re: Best credit card to start business credit ?


@pat0812 wrote:

Hi,

 

I have a business for about 2 years and we are doing great.

I don't pay anything with loans or credit cards. Everything in cash.

 

I want to start to build our business credit

What card should I apply first?

 

Both owners of the business, we have great personal credit (somewhere in the mid 700)

We have high limits (Over 60K on 6-7 cards each)


I use Capital One Spark. I like it a lot.

 

Some people think it's a bad idea because (a) Capital One often pulls from 2 or 3 bureaus, (b) it's a personal guarantee card, and (c) it reports to the personal credit bureaus.

 

But I like it. 2% cash back, very user friendly, soft pull auto CLI's, good company to deal with.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 6 of 6
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