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Where to get small biz line of credit that doesn't factor into personal FICO?

New Member

Where to get small biz line of credit that doesn't factor into personal FICO?

Hi folks- I have a small LLC that's poised for some growth this year.

 

We have operated at a loss the last two years due to startup costs but should be profitable this year.

 

I've been shopping around for a small $20k line of credit to help invest inventory to fulfill some big POs. Right now, the only bank that is willing to offer me something is Bank of America but this unsecured line sits on my personal credit, which I don't want. Happy to PG but since I'm going to use the hell out of this line it will kill my utilization...

 

Any suggestions on approaches and/or banks to consider in the NY area would be greatly appreciated!

Message 1 of 12
11 REPLIES

Re: Where to get small biz line of credit that doesn't factor into personal FICO?

I have a Bank of America business credit card.  It doesn't report to my personal credit. I'm fairly certain that their business products do not report to your personal credit.

 

 

 

Message 2 of 12
Frequent Contributor

Re: Where to get small biz line of credit that doesn't factor into personal FICO?


jd445 wrote:

Happy to PG but since I'm going to use the hell out of this line it will kill my utilization...

 

 


 

Why would a business line of credit from BoA report to your personal credit?

 

Why does your personal utilization matter?

Message 3 of 12
Valued Contributor

Re: Where to get small biz line of credit that doesn't factor into personal FICO?

Inverse - There are some Business Credit cards that will appear on your personal credit report. I know CapOne does.

Also, since business lines tend to be much higher than personal lines it can appear as you having higher overall Utilzation if it were to report.

Example: Personal Credit available 25k Business Credit Available 100k.

If you were to use 13k or more of that 100k in Business Credit AND it was a business card that reports to personal as well that would negatively impact your personal FICO score because you're over 10% UT. Also many businesses use more of their business credit during startup years so that could greatly impact one's personal FICO scoring due to very high UT.

But that only happens if your business credit card reports to personal reports, some do most don't.
Message 4 of 12
Frequent Contributor

Re: Where to get small biz line of credit that doesn't factor into personal FICO?


Matt4200 wrote:
Inverse - There are some Business Credit cards that will appear on your personal credit report. I know CapOne does.
Also many businesses use more of their business credit during startup years so that could greatly impact one's personal FICO scoring due to very high UT.
.

This thread is about a business line of credit not credit cards. Specifically BOA, which I can definitively say does not report to personal credit.

 

I've found actually making money to be more satisfying than FICO scoring and utlization percentage micromanagement.

Maybe the OP has a reason to be concerned about personal utilization which is why I asked.  Maybe the OP will reply.

Message 5 of 12
Valued Contributor

Re: Where to get small biz line of credit that doesn't factor into personal FICO?

Okay, but since some CC's appear on personal, OP likely assumed the same is true for a biz LOC,

Also, no one says you can't make money AND have an 800 FICO score Smiley Wink
Message 6 of 12
New Member

Re: Where to get small biz line of credit that doesn't factor into personal FICO?

Thanks for your feedback all.

 

A few reasons I'm raising this. The BoA banker I spoke with told me unequivocally that the product he can offer me (an unsecured Business line of credit for my LLC) would factor into my personal credit score. 

 

I don't want this because I'm planning to buy a house in the next 12 or 18 months and wouldn't want my FICO score to plunge, meaning higher interest rates, as a result of my constant usage of the line (read: utilization).

 

Perhaps my understanding of all of this is rudimentary but that's why I'm here.

Message 7 of 12
Frequent Contributor

Re: Where to get small biz line of credit that doesn't factor into personal FICO?


Matt4200 wrote:
no one says you can't make money AND have an 800 FICO score Smiley Wink

I'm not sure who said I don't.

 

Credit Scores are important when you need them and easily cleaned up prior to applying if utilization is your only issue.

Message 8 of 12
New Member

Re: Where to get small biz line of credit that doesn't factor into personal FICO?

Easy if your assets are liquid Smiley Wink

 

But I digress...

Message 9 of 12
Frequent Contributor

Re: Where to get small biz line of credit that doesn't factor into personal FICO?


jd445 wrote:

Thanks for your feedback all.

 

A few reasons I'm raising this. The BoA banker I spoke with told me unequivocally that the product he can offer me (an unsecured Business line of credit for my LLC) would factor into my personal credit score. 

 

I don't want this because I'm planning to buy a house in the next 12 or 18 months and wouldn't want my FICO score to plunge, meaning higher interest rates, as a result of my constant usage of the line (read: utilization).

 

Perhaps my understanding of all of this is rudimentary but that's why I'm here.


 

The BOA business line of credit will require a PG but I have not seen any BOA business line report on personal credit.

My BOA business lines don't show up on business EQ, EX or D&B reports either for that matter, but YMMV on that.

I suspect they show up on SBFE based upon some other readings.

 

Constant useage of credit lines will not affect your rates if you clean up your utilization before you apply.  That is detailed in many places on the forum .  EDIT: See your response about liquidity.  That's an a whole different discussion on financing illiquid assets.

 

You don't mention your scores or situation, but I'm sure you can get help to plan for the mortgage application if you give the nice people here some more details.

 

A BOA business line of credit is a good line to have, many here are trying to get one.  I wouldn't be quick to dismiss it, it will open doors to other credit.

 

You are in NY (as am I), so CHASE is big...

After you get the BOA line set up, set up an appointment at your local Chase branch that has a full time business rep.

You walk in, you share your BOA information with them and see what they have to offer.

 

I have two BOA business cards.  Chase on a single card almost tripled the limit of the two combined for me because they wanted that business away from BOA.

Chase now gets my business spend.

Amusingly, BOA responded by raising my limits on the two cards (never raised them before).

 

BOA has some business products I use heavily that I haven't found elsewhere.

They have their problems like anywhere else.

They were there for me when I needed a bank for a small business and I remind you from your first post "Right now, the only bank that is willing to offer me something is Bank of America"

 

This is not a BOA commercial Smiley Happy

Message 10 of 12