Reply
Regular Contributor
dize
Posts: 127
Registered: ‎05-24-2014
0

Independent sales

Hi, I am an independent sales contractor, so I am self employed, although I often sign exclusive contracts. I put a lot of business expenses (gas, car, travel, etc.) through my personal finances. I am curious if I could get a business credit card for these purchases? Would I need to incorporate or register a business name? 

 

If I do fit into the criteria for qualifying for a business credit card, what creditors offer good cards for someone in this situation? I understand I will have to use my personal credit to apply for the card. I am in the rebuilding phase of that, with my scores ranging from 605-645, with my experian being the worst and transunion and equifax being better. 

 

Another question that assumes I qualify for a business credit card: about 85% of my driving is for business. Would I be able to run my car repair and maintenance expenses through the business card as well?

 

Thanks.

Epic Contributor
Creditaddict
Posts: 22,116
Registered: ‎10-23-2007
0

Re: Independent sales

you could apply for business credit as the sole-prop. and just put your name as the company name and your social, etc.

you could probably apply for an EIN the same way but you might have to create a business name first (depdnding what state you are in you can do it online very quickly and cheaply and just said it up as sole prop. and it all runs through you so it's still easy to file for taxes and such.

 

Capital One Spark is probably a decent chance of giving you a starter card with credit steps (that's what I got with under 600 fico)

76 gas also seems to be one of the most lenient ge cards (I actually just got the personal verision)

and just recently got the Chevron Business Fleet card (they are offering $.20 cents off a gallon for the entire first year!!) keep in mind they only allow gas purchases even though it's mastercard and it has to be paid every 7-30 days depending what net terms they give you (mine is bi-monthly) but ill just set up payment in full driectly from my checking account every 15th and 30th.

GasBuddy app on your phone is your friend if you do a lot of driving, those $.5 cents can really add up!!!

 

you can really put anything you want on a business card once you get it, the question is rather you can deduct it on taxes later (your car repairs, most likely yes!)

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:
Regular Contributor
dize
Posts: 127
Registered: ‎05-24-2014
0

Re: Independent sales

Hi, thanks for the info.

 

Are there any cards other than spark that I may potentially be able to qualify for? I understand that Spark reports to my personal credit. I would like a card that does not do this so that I can actually utilize it. I am working on bringing my util down below 20%, If I were to run all of my business expenses through a card that reportsto my personal credit on a monthly basis it may inflate my util more than I would like, and would offset the benefits of having the business card IMO.

Epic Contributor
Creditaddict
Posts: 22,116
Registered: ‎10-23-2007
0

Re: Independent sales


dize wrote:

Hi, thanks for the info.

 

Are there any cards other than spark that I may potentially be able to qualify for? I understand that Spark reports to my personal credit. I would like a card that does not do this so that I can actually utilize it. I am working on bringing my util down below 20%, If I were to run all of my business expenses through a card that reportsto my personal credit on a monthly basis it may inflate my util more than I would like, and would offset the benefits of having the business card IMO.


Barclay has some business cards and they don't report unless you go delinquent.

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:
Regular Contributor
dize
Posts: 127
Registered: ‎05-24-2014
0

Re: Independent sales

Thanks, I would really like chase, especiallly since I have a banking relation with them, but I hear they are very hard to get.

 

 

I also have a business idea I plan on starting up. This is something that would be very useful for that as well. my initial costs would be primarily marketing and website building so it shouldn't be too terrible a startup.

Established Contributor
CreditUnionFan
Posts: 678
Registered: ‎10-07-2013
0

Re: Independent sales

As others have pointed out, check with your state regarding the registration of the fictitious name, and also obtaining a FEIN from the IRS.  As a sole proprietor, the cost is usually minimal. (when i registered it was free, now I think a sole proprietor "DBA" may be $25 one-time charge, so check your state)  You can usually do the paperwork yourself, often an online form. As for the FEIN from the IRS, there's no charge for that, and can be done in minutes. 

 

I didn't need a FEIN for my sole proprietor business for several years, and back then Chase and Amex both issued business cards with myself as PG. Chase and Amex both post to business credit reports with the exception of the HP for the account opening.

 

Ironically, it wasn't until I attempted to sign up for a T-Mobile "business" plan that they required a FEIN. I requested and received the FEIN while sitting in the shop, emailed them the PDF, and got my business cellphone plan.

 

I just looked at the Chase application, and sure enough, there's a spot for the Taxpayer Identification Number. It can be the FEIN from the IRS, or if you don't have one, you can still use your SSN.

I was going to garden... Honest!

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+
}