Forming a LLC just to get a business credit card

Anonymous · ‎11-09-2015

Hi, first post on this forum, but I thought I'd ask the experts. I filed a personal Chapter 7 bankruptcy in October of 2014 (discharged in February of this year). So far I've been able to get a Barclaycard, a credit card from my local credit union, a car loan, and several store cards to start rebuilding my credit. Before my bankruptcy, I had an American Express green card for 7 years. I love the perks, customer service, and use of American Express, but I've found that they probably won't approve me for another card until my bankruptcy falls off my credit report in about nine more years. I did NOT burn them in bankruptcy. I was thinking about forming a LLC in my homestate and applying for a business credit card through American Express once I get an EIN. Does this sound like a stupid idea? Any suggestions? I do sell a lot of electronics on Ebay (mostly mobile phones and computers I fix), and I do housecalls from time to time for repairs. I do have some de facto side business going on, so it probably wouldn't be a bad idea to get this started. But I was interested in forming a LLC since the business credit would be seperate from my personal credit.

Dumb idea and tons of work just to get an Amex? I'm weird like that, but any ideas or if it's even plausible?

Anonymous · ‎11-09-2015

They would pull your personal credit for the card application.

CreditJim · ‎11-09-2015

Even if you formed an LLC and obtained an EIN you'll still have to personally guarantee the Amex application with your Social Security.

ddemari · ‎11-09-2015

hi there, your post might get better results if you post this in the business credit section. Business Credit and Personal credit are two different worlds in general and especially in my knowledge lol. good luck!

pizza1 · ‎11-09-2015

um honestly?? Yes, not a good idea. First, the soonest Amex will let you in is 5 yrs post BK, if you didn't burn them. A few chosen ones here were able to get a BBVA/Amex at a little over 4 yrs post BK, but their overall credit profiles were awesome for being 4 yrs post.

Is it a good idea to form a business without intent of having a business just to get a business card? NO!

You're only wanting to do that to get a business Amex, which they won't give you anyways, because they will pull your personal file, and say NO. Youre only 1 yr post discharge. Wont happen at all, sorry!

Try the Delta Gold Amex at 5 and one day post DC

Anonymous · ‎11-09-2015

Thanks for the info, guys. I thought I had found an ingenius loophole, but I guess not. lol

pizza1 · ‎11-09-2015

@Anonymous wrote:
Thanks for the info, guys. I thought I had found an ingenius loophole, but I guess not. lol

believe us....if theres a loop hole, we would know about it, LOL... Sorry, but youre gonna have to wait out an Amex approval just like the rest of us BK'ers.. They pull EX btw, so youve got time to work on that score. IF you stck around the forums long enough, youll see me test the Amex thing at end of August 2018. More than likely, Ill have to recon it too.

CH-7-Mission-Accomplished · ‎11-09-2015

@Anonymous wrote:
Hi, first post on this forum, but I thought I'd ask the experts. I filed a personal Chapter 7 bankruptcy in October of 2014 (discharged in February of this year). So far I've been able to get a Barclaycard, a credit card from my local credit union, a car loan, and several store cards to start rebuilding my credit. Before my bankruptcy, I had an American Express green card for 7 years. I love the perks, customer service, and use of American Express, but I've found that they probably won't approve me for another card until my bankruptcy falls off my credit report in about nine more years. I did NOT burn them in bankruptcy. I was thinking about forming a LLC in my homestate and applying for a business credit card through American Express once I get an EIN. Does this sound like a stupid idea? Any suggestions? I do sell a lot of electronics on Ebay (mostly mobile phones and computers I fix), and I do housecalls from time to time for repairs. I do have some de facto side business going on, so it probably wouldn't be a bad idea to get this started. But I was interested in forming a LLC since the business credit would be seperate from my personal credit.

Dumb idea and tons of work just to get an Amex? I'm weird like that, but any ideas or if it's even plausible?

AMEX pulls personal credit for small business cards. You would have to be a publicly traded company to get one relying only on the corporation's financials.

You can get a card 5 years post BK if you did not burn them.

sccredit · ‎11-10-2015

@CH-7-Mission-Accomplished wrote:
@Anonymous wrote:
Hi, first post on this forum, but I thought I'd ask the experts. I filed a personal Chapter 7 bankruptcy in October of 2014 (discharged in February of this year). So far I've been able to get a Barclaycard, a credit card from my local credit union, a car loan, and several store cards to start rebuilding my credit. Before my bankruptcy, I had an American Express green card for 7 years. I love the perks, customer service, and use of American Express, but I've found that they probably won't approve me for another card until my bankruptcy falls off my credit report in about nine more years. I did NOT burn them in bankruptcy. I was thinking about forming a LLC in my homestate and applying for a business credit card through American Express once I get an EIN. Does this sound like a stupid idea? Any suggestions? I do sell a lot of electronics on Ebay (mostly mobile phones and computers I fix), and I do housecalls from time to time for repairs. I do have some de facto side business going on, so it probably wouldn't be a bad idea to get this started. But I was interested in forming a LLC since the business credit would be seperate from my personal credit.

Dumb idea and tons of work just to get an Amex? I'm weird like that, but any ideas or if it's even plausible?
AMEX pulls personal credit for small business cards. You would have to be a publicly traded company to get one relying only on the corporation's financials.

You can get a card 5 years post BK if you did not burn them.

Their Corp program does not require being a publicly traded company.

silver_idle · ‎11-13-2015

@CH-7-Mission-Accomplished wrote:
@Anonymous wrote:
Hi, first post on this forum, but I thought I'd ask the experts. I filed a personal Chapter 7 bankruptcy in October of 2014 (discharged in February of this year). So far I've been able to get a Barclaycard, a credit card from my local credit union, a car loan, and several store cards to start rebuilding my credit. Before my bankruptcy, I had an American Express green card for 7 years. I love the perks, customer service, and use of American Express, but I've found that they probably won't approve me for another card until my bankruptcy falls off my credit report in about nine more years. I did NOT burn them in bankruptcy. I was thinking about forming a LLC in my homestate and applying for a business credit card through American Express once I get an EIN. Does this sound like a stupid idea? Any suggestions? I do sell a lot of electronics on Ebay (mostly mobile phones and computers I fix), and I do housecalls from time to time for repairs. I do have some de facto side business going on, so it probably wouldn't be a bad idea to get this started. But I was interested in forming a LLC since the business credit would be seperate from my personal credit.

Dumb idea and tons of work just to get an Amex? I'm weird like that, but any ideas or if it's even plausible?
AMEX pulls personal credit for small business cards. You would have to be a publicly traded company to get one relying only on the corporation's financials.

You can get a card 5 years post BK if you did not burn them.

You can be a private company and still get their corporate card. As for OP, it is not wise to get a business card and use the business as a "shell." It doesnt even work like that, and if you were to get a card without a PR, using it for personal use is just as bad because it defeats the purpose of having a corporation or an LLC, and if you default and they sue the company (or in turn you), they can have the corporate viel pierced and they can go after your personal assets.