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Does having rental property count as business?

Valued Contributor

Does having rental property count as business?

I would think it does and I'm the sole proprietor, right?

Just curious about the possibility of an Ink card in the future. Also, thinking about doing other side jobs as well since my full time job allows for so much time off.
Learning from my past and rebuilding..

BK discharged 1/10/17
scores: EQ 659 | TU 630 | EX 659

QS 3.8K | WF 500 | Cabela's 3k | ACU 500 |

Message 1 of 9
8 REPLIES
Super Contributor

Re: Does having rental property count as business?

I would say so 

You need credit for repairs, materials etc etc all business expenses 

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 2 of 9
Valued Contributor

Re: Does having rental property count as business?

I was thinking it would be justifiable if asked. I may go for a business card sometime either later this year or next year.

Are approvals based off personal credit seeing how I would just enter my SSN for sole proprietor?
Learning from my past and rebuilding..

BK discharged 1/10/17
scores: EQ 659 | TU 630 | EX 659

QS 3.8K | WF 500 | Cabela's 3k | ACU 500 |

Message 3 of 9
Super Contributor

Re: Does having rental property count as business?

The nice part about the Business Card is breaking out your expenses clearly from personal. Also, many cards do not report regularly to the credit bureaus. Love that feature.
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Message 4 of 9
Valued Contributor

Re: Does having rental property count as business?


j_casteel wrote:
I was thinking it would be justifiable if asked. I may go for a business card sometime either later this year or next year.

Are approvals based off personal credit seeing how I would just enter my SSN for sole proprietor?

I believe you can turn rental property into a business.

 

However, if you're going to get a business CC for this purpose, you may be asked for proof that the business actually exists.  I'd be prepared to produce various documents like business checking statements, tax returns, profit/loss statements, licenses, permits, state and local filings, etc.  Many of these things are required or make sense whether you're a sole proprietor, LLC, S corporation, or regular corporation.

 

Small business CCs are typically based on personal credit, whether you have EINs or just an SSN.  I have both an EIN for a specific business, and an "owner EIN" that is separate from any business, but I still am required to personally guarantee the credit for my Chase Ink and Citibusiness cards.

 

Message 5 of 9
Valued Contributor

Re: Does having rental property count as business?


user5387 wrote:

j_casteel wrote:
I was thinking it would be justifiable if asked. I may go for a business card sometime either later this year or next year.

Are approvals based off personal credit seeing how I would just enter my SSN for sole proprietor?

I believe you can turn rental property into a business.

 

However, if you're going to get a business CC for this purpose, you may be asked for proof that the business actually exists.  I'd be prepared to produce various documents like business checking statements, tax returns, profit/loss statements, licenses, permits, state and local filings, etc.  Many of these things are required or make sense whether you're a sole proprietor, LLC, S corporation, or regular corporation.

 

Small business CCs are typically based on personal credit, whether you have EINs or just an SSN.  I have both an EIN for a specific business, and an "owner EIN" that is separate from any business, but I still am required to personally guarantee the credit for my Chase Ink and Citibusiness cards.

 


Thanks for the great info!

Learning from my past and rebuilding..

BK discharged 1/10/17
scores: EQ 659 | TU 630 | EX 659

QS 3.8K | WF 500 | Cabela's 3k | ACU 500 |

Message 6 of 9
Frequent Contributor

Re: Does having rental property count as business?

I would hope so. Rentals are more than 50% of my companies income lol

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Message 7 of 9

Re: Does having rental property count as business?

I applied for a business card with the intent of using my rental property as my "business". I researched before applying and even asked people's opinion on whether or not I would get accepted if I put down my property as a business. One person warned me that when you tell a lender that the business is a rental property, prepared to get grilled. Were they ever right! I was grilled to what seemed like no end, but I answered everything truthfully. In the end I got declined. And I had clean reports and a 760 score to boot!

Message 8 of 9
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Valued Contributor

Re: Does having rental property count as business?

Thanks
Learning from my past and rebuilding..

BK discharged 1/10/17
scores: EQ 659 | TU 630 | EX 659

QS 3.8K | WF 500 | Cabela's 3k | ACU 500 |

Message 9 of 9