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Lender views on business CC's

Frequent Contributor

Lender views on business CC's

I'm on several credit report sites. Some sites count my business credit card as apart of my revolvers. While other sites totally exclude it from the revolving list. So my CC uti is different because I have different totals between the different sites.

 

My question is how does a lender view the business credit card? Does it add to my personal revolving credit worthiness as a personal card would, or is it viewed on a lesser level, kinda like how they see autherized user cards?....

Myfico scores.....
EX... 805 (11-10-13)
EQ... 810 (12-02-13)
TU... 810 (12-02-13)
Message 1 of 12
11 REPLIES
Super Contributor

Re: Lender views on business CC's


jarroldharrell1 wrote:

I'm on several credit report sites. Some sites count my business credit card as apart of my revolvers. While other sites totally exclude it from the revolving list. So my CC uti is different because I have different totals between the different sites.

 

My question is how does a lender view the business credit card? Does it add to my personal revolving credit worthiness as a personal card would, or is it viewed on a lesser level, kinda like how they see autherized user cards?....


The only one that reports to personal credit is Cap1 and yes this can have a negative effect on UTL because sometimes you may need to max it out. Business cards that only report to Business CR's allow you to do this with no side effects so to speak.

 

So from a lenders view it may appear as high UTL when applying for personal credit ...My cap1 kept my scores down until I figured out I had to make sure UTL was low when statement cut which hampered the use of the card at certain times of the month

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 12
Super Contributor

Re: Lender views on business CC's

Moving to Business Credit
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 3 of 12
Established Contributor

Re: Lender views on business CC's


jarroldharrell1 wrote:

I'm on several credit report sites. Some sites count my business credit card as apart of my revolvers. While other sites totally exclude it from the revolving list. So my CC uti is different because I have different totals between the different sites.

 

My question is how does a lender view the business credit card? Does it add to my personal revolving credit worthiness as a personal card would, or is it viewed on a lesser level, kinda like how they see autherized user cards?....


What sites? 

Message 4 of 12
Frequent Contributor

Re: Lender views on business CC's

Wow, that's amazing you brought that up about Cap 1. That's the card I have, and it reports to my personal report. I didn't know I had the 1 business CC that reports to personal......Smiley Very Happy

 

I keep it zero'd out (it has a 20,000 limit), and I have another personal credit card (Amex) that has a 10,000 limit. All my other cards are AU cards. Which means only 2 out of the 6 cards are truly mine. I heard that lenders want to see you with cards of your own, and not just AU cards. So if a lender sees my report will he say to him/herself that this guy has 2 CC's to show worthiness or will he/she see it as I only have 1 card?....

 

Does my question make sense?....I can't seem to make it make sense on paper.....

Myfico scores.....
EX... 805 (11-10-13)
EQ... 810 (12-02-13)
TU... 810 (12-02-13)
Message 5 of 12
Super Contributor

Re: Lender views on business CC's


jarroldharrell1 wrote:

Wow, that's amazing you brought that up about Cap 1. That's the card I have, and it reports to my personal report. I didn't know I had the 1 business CC that reports to personal......Smiley Very Happy

 

I keep it zero'd out (it has a 20,000 limit), and I have another personal credit card (Amex) that has a 10,000 limit. All my other cards are AU cards. Which means only 2 out of the 6 cards are truly mine. I heard that lenders want to see you with cards of your own, and not just AU cards. So if a lender sees my report will he say to him/herself that this guy has 2 CC's to show worthiness or will he/she see it as I only have 1 card?....

 

Does my question make sense?....I can't seem to make it make sense on paper.....


Lenders will see it as you have 2 business lines CC's 

Not sure how it shows on yours but on mine CAP1 shows as business cc personal guaranteed on one CR the other (2)  it just says business CC.

So when a lender pulls my personal CR they see CAP1 and when they pull my business CR's they see my Amex along with some other account

So yes in your case they will see you have 2 business CC's 

Not sure if the AU's will help business wise because all business accounts are PG by you. Probably helps personal but I don't think it has any bearing on your business file

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 6 of 12
Highlighted
Epic Contributor

Re: Lender views on business CC's

If you have a $20k Capital One Business Card and you are thinking about another card I would suggest a Capital One Personal Card since both go completely off your personal credit... for some reason they LOVE YOU!

Message 7 of 12
Super Contributor

Re: Lender views on business CC's

Truth, look at Chase Business Cards. I have one since 2006 with $10K CL at 12.24% APR and excellent rewards. They treat me well. They do NOT report on personal credit unless I fail to comply with thy cardholder agreement.
Starting Score: 802
Current Score: 821
Goal Score: 850


Take the myFICO Fitness Challenge
Message 8 of 12
Frequent Contributor

Re: Lender views on business CC's

As long as I don't create high UTI on it, I think that it showing on my credit report should look good for me to a lender. If I were a lender, I'd think this guy's business must be doing ok if he's not using his credit cards for it.

 

Just thinking out loud......

Myfico scores.....
EX... 805 (11-10-13)
EQ... 810 (12-02-13)
TU... 810 (12-02-13)
Message 9 of 12
Epic Contributor

Re: Lender views on business CC's

Id also be mad that I had a card since 2006 and the CL is still only $10k for my business... but it's chase and it's always a HP so I might be in same boat with you.

While I HATE cap1 reporting the business cards, with a $20k limit and OP PIF, I'm with them... for right now and how they use the card, they are just fine with it reporting... at some point if you need to USE it a ton and maybe not pay in full... I might take this time to pick up an additional business card with someone else that doesn't report.

Message 10 of 12