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Will personal credit card payment history help in getting business cards?

Regular Contributor

Will personal credit card payment history help in getting business cards?

Hi,

My credit history is barely two years abd I had only one credit card for those two years. Now I got two more credit cards. Though I am getting pre qualified offers from various banks, I am not going for them as I don't want to get into debt trap.

Question is, having a good payment history with personal card adds any brownie points in getting business cards since my credit history is relatively new?

Can't one get business cards directly with banks if the credit history is less than three years old and no installment loan accounts, open or close?
Message 1 of 10
9 REPLIES
Moderator

Re: Will personal credit card payment history help in getting business cards?


Internationalstudent wrote:
Hi,

My credit history is barely two years abd I had only one credit card for those two years. Now I got two more credit cards. Though I am getting pre qualified offers from various banks, I am not going for them as I don't want to get into debt trap.

Question is, having a good payment history with personal card adds any brownie points in getting business cards since my credit history is relatively new?

Can't one get business cards directly with banks if the credit history is less than three years old and no installment loan accounts, open or close?

Yes your personal credit history is very important.  The vast majority of business cards issued by banks such as Chase, Citi, American Express, CapOne, etc will base their decisions on your personal credit history.  You are personally guaranteeing these cards so your personal credit history is what is important.

 

Yes, you can get get business cards if your credit history is as you describe.

Message 2 of 10
Regular Contributor

Re: Will personal credit card payment history help in getting business cards?

Hi,

Thanks for the reply. One more question: if a bank offers both personal and business credit cards, will it be wise to first apply for personal credit card and then go for business credit card after a year or so?
Message 3 of 10
Valued Contributor

Re: Will personal credit card payment history help in getting business cards?

Go with what you need. Certain lenders have lower underwriting criteria standards if you don't have full confidence in your personal scores.

I would recommend CapitalOne.

But if you have over a 700 FICO you can look more into your "various offers".
Message 4 of 10
Moderator

Re: Will personal credit card payment history help in getting business cards?


Internationalstudent wrote:
Hi,

Thanks for the reply. One more question: if a bank offers both personal and business credit cards, will it be wise to first apply for personal credit card and then go for business credit card after a year or so?

Not necessary to do that to obtain a business card.  If your credit profile would result in an approval for a credit card from one of the major banks, then it would more than likely result in a business card approval as well.

 

As for Matt's suggestion about CapOne.  They're fine but keep in mind that they report to your personal credit reports unlike most business cards that only report to your business credit reports.  A lot of people prefer that because your usage does not affect your personal credit utilization and therefore your credit scores.  Amex is generally pretty easy to obtain a business card from if your credit is decent

Message 5 of 10
Valued Contributor

Re: Will personal credit card payment history help in getting business cards?

Irish80 - I completely agree I just was unsure of the OP's credit situation if they are in the low 600's Amex may not approve them for a business card while CapOne would.

For me Amex is being stubborn I got a business card from them a few months ago when personal scores were 670's and now since the 61 days has passed I requested the 3x CLI with new scores of 740 (EX because I know they pull EX) and was denied not even given a counteroffer.
Message 6 of 10
Regular Contributor

Re: Will personal credit card payment history help in getting business cards?

I agree with Matt4200. Both Citi and Amex are cautious for business cards and they expect excellent credit. But Capital one business classic is easy to get even with 650 score.
Message 7 of 10
Moderator

Re: Will personal credit card payment history help in getting business cards?


Internationalstudent wrote:
I agree with Matt4200. Both Citi and Amex are cautious for business cards and they expect excellent credit. But Capital one business classic is easy to get even with 650 score.

That may be partially true for Citi (and even then, they certainly don't require excellent credit) but certainly not for Amex.  Amex business cards are considered fairly easy to get.  If you can get approved for an Amex personal card with 650score, which you can, then you can get approved for a business one.

Message 8 of 10
New Contributor

Re: Will personal credit card payment history help in getting business cards?

I applied for Amex personal cards (Green/Blue Cash) and established a 6 month history. After that point, using the green charge for business purposes mainly, I apped for the Gold Biz card with zero credit history for my business and was instantly approved.

 

The way I understand it, at least with Amex biz, is that you're cosigning on your own business (and submitting your credit history) saying essentially that it's you applying for the card, on behalf of the business. 

Message 9 of 10
Regular Contributor

Re: Will personal credit card payment history help in getting business cards?

Thanks for the info. Yes. It makes sense but just want to confirm the same.
Message 10 of 10