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04-07-2009 01:46 PM
Creditaddict wrote:just a warning... Amex business cards DO report to personal unlike all these other business cards that don't
Is this true? Does the AMEX SimplyCash report to personal credit reports?
No I spoke out of turn! lol... I was wrong, sorry
04-24-2009 08:50 AM
07-01-2009 03:37 PM
07-16-2009 09:19 AM
03-13-2010 02:40 AM
why is everyone happy that bussiness card dont repot? I think I should avoid them for this reason
'no report = lower CL
May I ask, where did you get 'no report equals lower credit limit'?
For one thing, no report to whom? The misunderstanding that business cards never report isn't true. I believe it would have been more accurate to say that business cards for a very long time did not report to one's personal consumer report; several business cards did report to one's business report, depending on what the issuer's agreement was.
As for 'no report equals lower credit limit', I have to be honest: that doesn't make sense. Why does issuing a $10000 line to a small printing business or $20,000 to a small IT consulting business have to be limited to whether or not the card appears on an authorized user's personal credit report? Looking at other's experiences online, 'no report equals lower credit limit' is simply not true. I have found for myself, in my own journey, that I received higher initial credit limits for my business cards than for my personal cards. This was pre and post economic meltdown. I have not applied for any cards, personal or business, post-CARD ACT however. But it doesn't matter, because my experiences will not be at all like someone else's experiences when it comes to credit limits. Our business histories will be different. Our personal credit reports will be different. The region of the country we are in will be different. The risk factors of our business models will be different. Our usage patterns with other vendors will be different. The issuer's own internal guidelines may have changed between when they were issued a card and when my business was issued one. But to base it all only on whether or not they're going to pay Experian, Equifax or Transunion for the privilege of furnishing data on a cardholder? I just don't see it.
Can a person who has worked as an underwriter explain how this works? I am not one. I don't know where the 'no report equals lower credit limit' comes from. I have never personally seen that, pre-economic meltdown or post-economic meltdown. I believe the strength of one's business credit reports (if the issuer pulls that information), the strength of one's personal consumer reports (again, if the issuer pulls up that information), and the issuer's own internal guidelines determine what one's credit limit will be -- not solely whether or not they report to Transunion, Dun and Bradstreet, or Experian Small Business. If someone who works at an issuer could explain how this works, that would be welcome.
But to answer your question: Business owners are happy business cards do not report to one's personal consumer report -- which is what you're referring to when you say a card does not report, right? -- because a business can get in a lot of liability trouble for muddling one's business life with one's personal life. Putting that information on an authorized cardholder's consumer report muddles that line. Off tangent slightly, if you look on a business credit report, great care is taken not to identify who a specific vendor/issuer is while reporting one's business' history with said vendor/issuer. Not so with a personal consumer report.
One's business expenses and spending habits should be separated from one's personal expenses and spending habits. Some people used credit cards, back in the old days, to cover payroll issues; some retail businesses used credit cards to tide over during expected lean periods. Perhaps people and businesses should not have done so. But they did. Those expenses are not ordinary consumer expenses, however. The lathe one buys on credit in order to create profit is NOT AT ALL in the same category as the high definition tv one buys on credit for personal pleasure. Neither is the fleetcard one uses to fuel and maintain one's business vehicles, again, with the purpose of profit; it is not at all in the same category as the fuel one uses to maintain one's personal family vehicle(s). Different spending habits, different spending purposes. The line between business and personal is kept safe.
When that line is breached by an issuer like Discover or Capital One, business owners have the right to be angry and take their business -- and the profits -- elsewhere. Unfortunately, it appears the Discovers and Capital Ones of the world don't care.
Non-Business owners are happy business cards do not report to one's personal consumer report because it made it easier to hide utilization. If FICO hadn't made utilization such an important part of the scoring model, no one would be happy or sad cards didn't report to personal consumer reports. But FICO does weigh utilization heavy. Therefore, those in the know gamed FICO. They gamed it with business cards. They gamed it with selling and buying the right to be listed as an authorized user on someone else's account without actually owning the card or being able to use the card. They gamed it through inquiry games.
I've hid utilization (RIP UMB). Those who saw what was coming down the pike months (and years) ago have already moved on to other ways to game FICO.
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