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Questions about My Personal Credit Cards and Business Credit Cards

Contributor

Questions about My Personal Credit Cards and Business Credit Cards

hi all i am 1099 and when i went to do my taxes this year the tax specalist put me down as Sole Propietor. when i talked to multiple people about this they all recommended i switch to S-Corp (even my tax specialist recommended i switch aswell).

 

the only problem with switching is that most of my business expenses (Gas and Food mostly), i've put on my own personal credit cards and so now i've been looking at Business Credit Cards like the Chase Ink brands.

 

my questions are:

 

1) If i switch to S-Corp will i still be able to use my personal cards? i don't mind doing the extra sorting through statements. besides most of my spending is business related anyway (i would say 90% is business spending) so it's pretty easy to sort personal from business.

 

2) If i do get a Business Credit Card such as one of the Chase Ink Credit Cards can i still transfer UR points over to my personal points and vice versa?

 

3) I've heard that the Chase Ink CC do not count as part of their 5/24 rule, is this true?

 

4) Since most of my spending is business related wouldn't this mean i would also be at risk of CLD on my personal credit cards since they will see less and less spending? This is my main concern because i've work really hard on my Credit Profile.

 

5) Would a Business Credit Card show up on my Personal Credit Profile? meaning if i get a CLI on my Business CC would that improve my Credit Ultilization on my Personal Credit Profile.

 

 

most of my concerns for switching to S-Corp involve how it would affect my Personal Credit Profile why is why i figured i'd ask here before i decide what to do. 


*****|$15,200|********|$13,500|***********|$5,000|*********|$25,000|***********|$500|
Highest Scores: Transunion 08: 821 | Equifax VantageScore 3.0: 780 | Experian 08: 804 | gardening until May 2018 or longer.
4 REPLIES
Valued Contributor

Re: Questions about My Personal Credit Cards and Business Credit Cards

1) Putting business expenses on personal cards loses any consumer protections you have and can look bad for an audit.

2) Yes, but Chase Ink Business is difficult to get if you have no business credit score, not impossible but don't be surprised if they deny you. CapOne is easier to get same with Amex.

3) Chase Ink (Cash and Preffered) are both under the 5/24 rule.

http://www.doctorofcredit.com/chase-524-rule-explained-detail-need-know/

4) Not really, some creditors are touchy about that like Amex, but we have accounts we use a couple times a year with 5k+ limits and no issues. Also, if you're putting it all on personal the bank can't decipher which is business and which is personal. But I would definitely recommend a business card.

5) 9/10 Business Cards will not show up on personal so say you have a 100k Business Card this will not in any way effect your personal FICO scores or reports. This is good because if you have high UT on your business card(s) it won't hurt you.

Switching to an S-Corp will not in any way impact your personal credit file. You may spend less on personal cards and more in business cards, but that's a plus.

Check your PM

Message 2 of 5
Contributor

Re: Questions about My Personal Credit Cards and Business Credit Cards


wilmer007 wrote:

Matt4200 wrote:


4) Not really, some creditors are touchy about that like Amex, but we have accounts we use a couple times a year with 5k+ limits and no issues. Also, if you're putting it all on personal the bank can't decipher which is business and which is personal. But I would definitely recommend a business card.

 

no i mean let's say i spend $1,000 a month for both personal and business across all my CC and then i get a Business CC this would lower the spending on my Personal CC which in turn could lead to CLD for less spending, even though the spending is still there it's just on a different card which happens to be business.


*****|$15,200|********|$13,500|***********|$5,000|*********|$25,000|***********|$500|
Highest Scores: Transunion 08: 821 | Equifax VantageScore 3.0: 780 | Experian 08: 804 | gardening until May 2018 or longer.
Message 3 of 5
Valued Contributor

Re: Questions about My Personal Credit Cards and Business Credit Cards

We've shifted almost all of our spending to business cards and no CLD. I don't believe that you'd get a CLD they a pretty rare and usually only happen when you have serious changes in your credit reporting, not just for lower spending.
Message 4 of 5
Valued Contributor

Re: Questions about My Personal Credit Cards and Business Credit Cards

Yeah I agree with Matt4200, CLD rarely happen due to lower spending habits, usually only when your CR changes and the bank deems you to be high risk. Although I was CLD Cabelas WFB but their an odd bank to begin with..
Message 5 of 5