11-30-2008 06:56 AM
Just wanted to get some insight from my fellow entrepreneurs regarding business credit cards.
Why are lenders such as AMEX calling them "Business" credit cards when they base their decision soley on the business owner(s) credit and not the actual business credit?
I've noticed that no matter how high your company's Paydex score is (80 or above) lenders still require a PG from small business owners!
So, why call them "Business" cards?
11-30-2008 08:15 AM - edited 11-30-2008 08:17 AM
I honestly really wouldn't mind the PG part IF they didn't add an inq and they don't report the line to your personal CR.
Just my two cents, but a physical person, not just an business entity has to be liable for the possible debt that can incur. Otherwise there is the possibilty of running up charges and then sticking it to the lender.
I'm sure many don't feel this way but IMO this is what has gotten us to PG'ing almost everything these days. No repercussions to an individual. It was easy just to default, close down or disolve and open a new business, it became a scam of sorts and the lenders were taking the brunt of it.
My business is my responsibility, I put just as much effort and time into keeping the books and my debt positive. I have no trouble with PG, I just don't agree that after you PG everything doesn't go to either Biz EX/EQ or D&B only.
Many others disagree but business's can't have their cake (credit) and eat it (no ones responsible) too.
11-30-2008 09:03 AM
With the Credit Crisis in this tought economy many lenders are tightening up
and many are requires PG. If you're looking for a Business card without PG you might want
to try key bank small business card.
11-30-2008 01:13 PM - edited 11-30-2008 01:42 PM
What if you're a real corporation not a one man show? Do they still require one of the officers/share holders/secretaries of that company to PG everything? I don't see how that makes sense. One person cannot be responsible for what the entire company does. There are too many other people make decisions.
How do the Amex small business and corporate cards differ?
12-01-2008 06:23 AM
I was told by a AMEX rep that the difference between the "Small Business" and the "Corporate" cards are small business cards require a PG from the owner(s) while the corporate card DO NOT.
However, in order to qualify for a "Corporate" card, your business must have existed for at least 6 months and have a minimum GROSS revenue of $4 million a year
Copyright ©2001-2013 Fair Isaac Corporation.
All rights reserved.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.