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CCs for New Small Business?

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Anonymous
Not applicable

CCs for New Small Business?

One more question: DW has just started a new business, of which she is sole proprietor. She would need a credit card, but I am not sure how that would work, since the business has no history yet.


I have read that in similar cases they look into the owner's personal CS, which in this case would not be bad -- she has a fairly short history with two CCs (older account 3y, AAoA 2y 8m), but she has no negs and a very good score (EQ=771, TU=780 as of March, it could even be better now).

 

Any suggestions on cards she could apply for? Ideally, a good cash back if possible? (I forgot to mention that she has an EIN and everything).

 

Thanks to all -- people have been extremely generous with info, I *love* this forum!!

Message 1 of 15
14 REPLIES 14
Creditaddict
Legendary Contributor

Re: CCs for New Small Business?

What kind of business?

Is she always going to pay in full or are you looking to credit for a little capital in the beginning?

If it's just for daily use of all company expenses that are basically already paid for by the service or product you sell then I would lean towards a Charge Card.

 

Amex Gold Charge has some great bonuses if you hit certain spending levels and would not report to your personal credit

Amex Plum is pretty nice too.

Chase has the new Ink, Ink Bold is a charge card that you pay in full also... nice because it's Visa so some merchants (again depending what type of business etc. might not take Amex) and I have yet to see more than like 3 people get approved for this product... Chase is just such a stickler.

 

But maybe with some more info I will feel differently Smiley Happy

Message 2 of 15
Anonymous
Not applicable

Re: CCs for New Small Business?

What kind of business?

 

Is she always going to pay in full or are you looking to credit for a little capital in the beginning?

If it's just for daily use of all company expenses that are basically already paid for by the service or product you sell then I would lean towards a Charge Card.

 

Amex Gold Charge has some great bonuses if you hit certain spending levels and would not report to your personal credit

Amex Plum is pretty nice too.

Chase has the new Ink, Ink Bold is a charge card that you pay in full also... nice because it's Visa so some merchants (again depending what type of business etc. might not take Amex) and I have yet to see more than like 3 people get approved for this product... Chase is just such a stickler.

 

But maybe with some more info I will feel differently Smiley Happy


Thank you!

 

The business is a European bakery. She bakes cookies and tarts that she sells to local supermarkets and at a couple of outdoor markets. She is renting regular days at a shared professional kitchen, so she did not have to set up her own workshop.

 

She won't need business credit, at least for the time being, and she's definitely able to PIF regularly. She would need the card for gas (not much) and pay vendors, mostly grocery shops and internet distributors for ingredients.

 

I was thinking of a Chase Freedom. I have read the thread business credit 101, but I think she is not in that league yet. She would just need a credit card which she is definitely going to PG. As I said, her credit score is fairly good, so if that is what they look at she should be OK. Because the business has just started it's not making hundreds of thousands, but the household income is good enough.

Message 3 of 15
GregB
Valued Contributor

Re: CCs for New Small Business?

I would be surprised if she will be able to get anything in a true business card unless it has a really low limit.

 

I opened a business card with MBNA (Now FIA, part of BofA) for a Sole Proprietership. They gave me a CL of $6,000. This wasn't enough so I opened a personal card with them. They gave me an initial CL of $30K. I started the business 20 years before and we had a LOC with my business bank at Prime +0%. Five years after opening those accounts the business CL was raised to $7,400 and the personal to $46K.

 

Message 4 of 15
Creditaddict
Legendary Contributor

Re: CCs for New Small Business?

Amex especially I don't see any reason why she wouldn't be able to obtain the business card, they don't care what your business is making they only care about your credit and your income. I don't have experience with the bank mentioned above but when I had my business and was opening credit cards, I was getting higher lines with business then with personal.

Message 5 of 15
Anonymous
Not applicable

Re: CCs for New Small Business?

@GregB: thank you -- $6,000 would be OK as a starting point. As I wrote, the business is just beginning and she has enough capital to face the day-to-day expenses.


@Creditaddict: thanks! The only issue with Amex would be that some of her vendors may not accept it.

 

Anyone has experience with Chase? Or advice about other possibilities with Visa or MC?

Message 6 of 15
Creditaddict
Legendary Contributor

Re: CCs for New Small Business?

As long as she has not opened any Chase accounts in the last 6 months and have low util and good score and income you should be fine for approval.

They have 3 or 4 Ink Card products, you can see which would work best.

I would probably try to go with a business card that doesn't report to personal credit... so stay away from Capital One and Discover.

Message 7 of 15
Uborrow-Upay
Valued Contributor

Re: CCs for New Small Business?

 

I'd pop for a Chase card.

 

I still hate them, but the lines are OK if you've got the numbers they're looking for.

 

PG'd, though.

 

 

And I still like Cap One for a biz card.  The 0% transaction fee BT checks are kinda useful at times.  Even though they'll pull all three reports, with a good personal score, your DW will probably get a decent limit card with them.  And if she pays attention to the calendar, there's a nice float in there, for free. 

 

I know some folks on these boards hate them, but my experience has been different.  I've never had a personal card with them, just a biz card, so that may make a difference.

 

Good luck with everything!  Smiley Happy

 

 

 

 

Message 8 of 15
Anonymous
Not applicable

Re: CCs for New Small Business?

Thank you!

@Uborrow-Upay wrote:

 

I'd pop for a Chase card.

 

I still hate them, but the lines are OK if you've got the numbers they're looking for.

 

PG'd, though. 

 


After doing some research, it seems the rewards are not as attractive as (say) an Amex Simply Cash or Blue for Business. Also, I don't understand what network they are in -- all images show the Ink logo, but no Visa or Mastercard. (I doubt they would be Discover or Amex). Am I missing something?

 


And I still like Cap One for a biz card.  The 0% transaction fee BT checks are kinda useful at times.  Even though they'll pull all three reports, with a good personal score, your DW will probably get a decent limit card with them.  And if she pays attention to the calendar, there's a nice float in there, for free. 

 

I know some folks on these boards hate them, but my experience has been different.  I've never had a personal card with them, just a biz card, so that may make a difference. 


I have a personal Cap 1 and am pretty happy too. Witin my first year I reached a CL of $ 2750. Of course it hasn't moved since, but it's their way of letting me know that I should move on. But they opened my credit account in the US, and I am grateful for that.

 

Thanks again for your help!

 

 

Message 9 of 15
Creditaddict
Legendary Contributor

Re: CCs for New Small Business?

If I'm not mistaken, the Ink runs throught the Visa network.

Message 10 of 15
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