Reply
New Member
printergirl
Posts: 4
Registered: ‎12-10-2012

Building Business Credit & Spark Card Denial (WTH)

Hm. I applied for a Spark Business card because I was interested in the 2% cash back offer they have. I did have to provide my SSN, as well as my EIN on the app. Was actually a bit shocked I was denied! I have a personal FICO score in the high 700's, with no bankruptcies or negatives reporting at all. I'm totally clean with excellent personal credit. I am a "credit fanatic" and monitor my personal credit every couple of days with all three agencies. It is an obsession for me. I am not sure why. But, I have never really pursued business credit. I have been in business since 2003, though incorporated since 2008. We have always been "cash and carry" with vendors and suppliers, but are really trying to expand, so having some credit has eased things a bit (even though we have generally been paying off charges within a week or two of having them).

 

I did just get a Chase Ink card, about a month ago, with a $5K limit a month ago for the business, as we are trying to create some "working captial," so we can quit choking our cash flow in our bank accounts. We often have to purchase inventory before the funds for the sales are deposited in our account from our credit card receipts. I have run it up to close it's max, and paid it off within a week each time, three times already, in just the month. It has definately made life easier, bookeeping wise, with less juggling of funds from checking account to checking account. But, this card only offers 1% cash back, so I though a Spark card would net me more cash back with their 2% offer. Sounded good to me and thought getting it would be no problem.

 

But, no luck here.

 

The letter I received from Spark stated the following:

 

- Based on the business data from the Small Business Financial Exchange for (my personal name), there is insuffiencient credit history.

(What is the Small Business Financial Exchange?)

 

- Based on the credit report from Experian for (my personal name), the length of past or present installment loans.

(Okay, I purchased a new vehicle a couple of months ago, but I also have two completely paid of installment loans - both vehicles - in the past 7 years on my report, with no late reports or issues! I also pay a mortgage and have been in my house since 1997, again with no late issues at all. Interestingly, my mortgage account ONLY shows up on my Experian report, not on any others.)

 

- Based on the credit report from Experian for (my personal name), there is insufficient credit history.

(Really? Really? This one just kind of pissed me off! I have a credit history that goes back 20 years or more and it is ALL EXCELLENT!!! What the heck? Not to mention my FICO score with Experian is the highest one I have out of all my reporting agencies - at 795!)

 

- Based on the credit report from Experian for (my personal name), there have been too many recent credit histories.

(There was the pull for the Chase Ink card about a month and half ago, as well as my car loan for the car I purchased in October, and nothing since! So WTH?)

 

By the way, I have two small personal Captial One cards ($500 CL on one, and $2500 CL on the other). I have had them since 2000. No late pays and they are both currently paid in full, although I did carry a balance (always making WELL over the minimum payment) on the larger card about a year ago for about 10 months.

 

After they denied me, I went ahead and applied for an AmEx revolver (not charge) and was approved for it. I just was curious, because I was kind of upset at being denied by Capital One. Not sure what the CL will be on that one yet, though I requested $5K. Then applied for an AmEx charge, which I was led to believe was easier to get than a revolver would be, and was DENIED! Applied on the same day, to hopefully only have one credit pull show on my personal report for AmEx (figured if two showed I could call and dispute with credit bureau.) Guessing now I shouldn't have bothered with the charge card app. :smileysad:

 

Based on some of the message I have seen on this board about getting the Spark card, I thought getting approved would be easy as pie for me. I have seen posts from people who got approved with much lower credit scores than me, even some with negative reportings on their credit file. :smileysad:

 

Thoughts? 

New Contributor
Project17
Posts: 137
Registered: ‎11-21-2012

Re: Building Business Credit & Spark Card Denial (WTH)

[ Edited ]

Kinda sounds like they may be looking at the wrong credit file for you.. For the most part your business credit has very little to nothing to do with getting approved for business credit cards if that makes sense. Maybe because you already have a couple cards with them? Not sure..

 

The small business exchange is Equifax for business.

New Member
printergirl
Posts: 4
Registered: ‎12-10-2012

Re: Building Business Credit & Spark Card Denial (WTH)

[ Edited ]

Nope. I only had one CC in my business name when I applied. That is the Chase card which I just got a few months ago. In their decline letter it all talks about me by my PERSONAL NAME, not by the business name. :/ I applied under the business name. The only other cards I have with Capital One are my two personal ones (mentioned above), which I have had for a long time. 

 

I really hadn't worked on building business credit before. I have a small D&B file -- not much on it. Though it does look like we have a vendor with a high credit limit (10K) in the freight area. I am guessing that is our UPS account. It shows as paid as required. Most of our vendors that we have terms with don't even report to D&B. Not sure if they are pulling from D&B to check our company credit or not? Like I said...long time business (since 2003), but only recently looking at the building business credit side of things.

 

The letter did say "insufficiennt credit history" with the Small Business Financial Exchange. So perhaps a lack of credit history with Equifax business reporting is an issue? I guess having the Chase card, and now the AmEx card which I was approve for, will help build that, but wondering how long I will have to wait to make it worth my while to reapply?

New Visitor
lamac66
Posts: 2
Registered: ‎04-05-2010

Re: Building Business Credit & Spark Card Denial (WTH)

Maybe more than 25% of utilization? Your situation sounds odd with your specifics. You should never be denied. I was on a business credit webinar and they pointed out how some people with high credit scores get turned down for business credit because your personal credit report does not reveal what a commercial credit report reveals when the underwriters look at your credit for business credit. This may have been what happened to you.

 

As far as capital one spark "business" credit card goes, I found out the hard way that it reports to a business credit bureau as wells as PERSONAL credit bureaus.  My fault for not being as thorough as I should have been. I guess I didn't ask the cust. serv rep in the right manner if this reports to business credit only. I just took it that if they report to business credit..they don't report to personal credit. WRONG!

New Member
printergirl
Posts: 4
Registered: ‎12-10-2012

Re: Building Business Credit & Spark Card Denial (WTH)

[ Edited ]

As far as capital one spark "business" credit card goes, I found out the hard way that it reports to a business credit bureau as wells as PERSONAL credit bureaus.  My fault for not being as thorough as I should have been. I guess I didn't ask the cust. serv rep in the right manner if this reports to business credit only. I just took it that if they report to business credit..they don't report to personal credit. WRONG!

New Contributor
Project17
Posts: 137
Registered: ‎11-21-2012

Re: Building Business Credit & Spark Card Denial (WTH)

What you need to understand is business credit cards go off your personal credit score no matter how much business credit you have unless you are a larger company with very very high trades. Business credit has little to no influence on the approval or denial of the card.. There are some places that factor business credit in and Capital One really doesn't even though they mentioned that.. I have seen a lot of people with worse scores get approved with them for biz cards and have no business credit file at all. Even though it's a business card they may be looking at the two other cards you already have with them since some banks just look at all the cards you have with them as a whole.

 

Yes they do report to personal and others do also. I have seen conflicting reports about Chase so not sure about them. Look at a Citi backed card usually better limits then others with a good score.

New Visitor
lamac66
Posts: 2
Registered: ‎04-05-2010

Re: Building Business Credit & Spark Card Denial (WTH)

You may also look at so called business gas cards. They dont report to pers cred. I have had good experiene with fleet one and wright express. they have good customer service from what i've experienced thus far.
New Member
printergirl
Posts: 4
Registered: ‎12-10-2012

Re: Building Business Credit & Spark Card Denial (WTH)

I was in Sam's Club, doing my usual 3X per week spend there, and decided, on a whim, to go for the Sam's Discover they have been trying to push me into for several years. I resisted, but since I am learning the value of cash back, the 2% cash back on spends at Sam's Club sounded good to me, given the amount of money I have been spending in cash every week there. I figured they would just turn me down, given the denial letter from Capital One I got, even though AmEx did approve me after that letter. Thought that was a fluke or something. Nope, the approved me and offered me a 5K credit line. Bizarre. Since the card does not have to be used exclusively at Sam's Club, and I can use it to extend my buying power with supplies, if needed, I think I am done pursuing any new credit for a while. I am going to work with what I have for now, and really try to build up the payment history on the cards I am using for a while.

 

I did ask the clerk  if it was in my company name, which our Sam's Club membership is, and she said yes, however, I am not convinced that is true, based on some things I have read. I guess I will wait and see until I get the permanent card. If it's not, I will still use it for business, but as a backup with suppliers other than Sam's, as needed, and pay off any spends on it right away to make sure it isn't affecting my personal credit too bad with a high balance. :/

 

Between the Chase card, the AmEx that is coming (still don't know the CL on it), and this one, I think I have plenty of "working capital," should the need arise.

New Contributor
Project17
Posts: 137
Registered: ‎11-21-2012

Re: Building Business Credit & Spark Card Denial (WTH)

It is a business card but I don't believe they report to business credit.

Established Contributor
sccredit
Posts: 770
Registered: ‎09-14-2012

Re: Building Business Credit & Spark Card Denial (WTH)

[ Edited ]

Amex WILL report it on your personal credit report

 

Capital One Business reports as - "Business card Personally Guarantee"

Mortgage $299k/$310k
Autos Loans $49.5k/$60k
Unsecured Lines $157.2k

Discover FICO 732
DCU FICO 718


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+