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applying for a business card without having or owning a business

Established Member

applying for a business card without having or owning a business

anyone know of the repercussions (if any) for applying for a business credit card and just using it as a personal card?

 

I don’t own a business, but several years ago I applied for a Chase Southwest Airlines credit card, I just entered the name of my business as” firstname”   “last name”  Inc.

 

it was accepted, and I’ve been using it ever since as a personal card, but it just dawned on me the other day that this might come back and bite me one day

 

any ideas?

Message 1 of 33
32 REPLIES
Established Contributor

Re: applying for a business card without having or owning a business


brasilesportes wrote:

anyone know of the repercussions (if any) for applying for a business credit card and just using it as a personal card?

 

I don’t own a business, but several years ago I applied for a Chase Southwest Airlines credit card, I just entered the name of my business as” firstname”   “last name”  Inc.

 

it was accepted, and I’ve been using it ever since as a personal card, but it just dawned on me the other day that this might come back and bite me one day

 

any ideas?


Well, I am going to start out not by judging, but by saying this is a disappointing situation.  It is actually considered fraud to apply for credit under false pretence.  This is much like applying for credit under someone else's name, so I was assume the reprecussions would be the same.  With that said, I am not clear on how you were able to apply for a business credit card without having a EIN (TaxID) for the business.  This is much like a social security number to a person.  Anyhow, with this said, likely this card is solely in your name and you are solely responsible for it because if this company does not exist then it does not have a credit rating.  If the company doesn't have a credit rating, then most lenders will require the owner/majority shareholder of the company to secure and be responsible for the debt.  My advice would be to pay off the card, open a card in just your name and close that card.  IMHO not only would you be looking at fraud, but there could also be tax implications.  May want to seek the advice of a lawyer to see the best way of handling this.


Starting Score: Eq: 662 Tu: 532 (03/02/2011) CH7BK 01/12/2009 Discharge
Current Score: Eq: 712 (02/03/2017) Tu: 717 (04/03/2013)
Goal Score: Eq: 760 Tu: 760

Wallet: PenFed Power Cash 25k | AMEX Blue Cash (AU) 49.5k | Cap One QSMC 26.5k | AMEX Platinum NPSL | LFCU Visa 10k
Message 2 of 33
Established Member

Re: applying for a business card without having or owning a business

sounds scary from the picture you’re painting, I will say that this was several years ago, so maybe the application process was much easier then, as I didn’t have to enter any tax id info or anything

 

no ill intentions, I was working contract labor at the time, and considered opening a business, just got the card to keep finances straight (work related with the business card, and personal with a different card), then later decided to drop the contract labor gig and take a real job

 

just never got around to canceling the business card, and have been using it ever since, didn’t think it’d be considered fraudulent

 

Message 3 of 33
Established Contributor

Re: applying for a business card without having or owning a business


brasilesportes wrote:

sounds scary from the picture you’re painting, I will say that this was several years ago, so maybe the application process was much easier then, as I didn’t have to enter any tax id info or anything

 

no ill intentions, I was working contract labor at the time, and considered opening a business, just got the card to keep finances straight (work related with the business card, and personal with a different card), then later decided to drop the contract labor gig and take a real job

 

just never got around to canceling the business card, and have been using it ever since, didn’t think it’d be considered fraudulent

 


And i want to be clear that I am not judging you and I don't mean for it to sound bad toward you.  I am just calling it for what it is and trying not to sugar coat anything so that you may be able to get this taken care of in the best way possible.  Hopefully someone that has a bit more experience regarding this will be able to provide some additional insight.  I doubt there were ill intentions regarding this, but you want to make sure things are being fixed so that they don't come to haunt you in the future.  It is possible that you can contact the credit card company and ask them for a copy of the application you submitted.  Just tell them that you misplaced it and you need a copy for your records.  Also, what address are they mailing your bills to?  Are the bills coming in the company's name or just in your personal name?  Either way it goes, I am sure you had to personally secure the debt if you didn't have to enter a company's TaxID.  Good luck, and let us know how it goes.  I don't mind offering any advice I can, but please understand it is just my advice and what I may do in the situation.  You may even be able to tell the lender that you are disolving the company and ask if they can convert the card to a personal credit card instead of a company card.  It's just that since you had "Inc." after the name, they may ask for proof that the Article of Incorporation was disolved.  Which you would not be able to provide that because there was no Article of Incorporation.  Any one else have any thoughts or suggestions to help out in this situation?


Starting Score: Eq: 662 Tu: 532 (03/02/2011) CH7BK 01/12/2009 Discharge
Current Score: Eq: 712 (02/03/2017) Tu: 717 (04/03/2013)
Goal Score: Eq: 760 Tu: 760

Wallet: PenFed Power Cash 25k | AMEX Blue Cash (AU) 49.5k | Cap One QSMC 26.5k | AMEX Platinum NPSL | LFCU Visa 10k
Message 4 of 33
Senior Contributor

Re: applying for a business card without having or owning a business

 


brasilesportes wrote:

sounds scary from the picture you’re painting, I will say that this was several years ago, so maybe the application process was much easier then, as I didn’t have to enter any tax id info or anything

 

no ill intentions, I was working contract labor at the time, and considered opening a business, just got the card to keep finances straight (work related with the business card, and personal with a different card), then later decided to drop the contract labor gig and take a real job

 

just never got around to canceling the business card, and have been using it ever since, didn’t think it’d be considered fraudulent

 


 

Since you were self employeed and you used the card for business expenses, I think this is a legit use of business card.

 

Not an expert opinion.   

Message 5 of 33
Valued Contributor

Re: applying for a business card without having or owning a business

Almost all business cards now required your business tax ID

Try not to become a man of success but rather to become a man of value
Albert Einstein 1879 - 1955

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Message 6 of 33
Senior Contributor

Re: applying for a business card without having or owning a business


Tazman81 wrote:

brasilesportes wrote:

anyone know of the repercussions (if any) for applying for a business credit card and just using it as a personal card?

 

I don’t own a business, but several years ago I applied for a Chase Southwest Airlines credit card, I just entered the name of my business as” firstname”   “last name”  Inc.

 

it was accepted, and I’ve been using it ever since as a personal card, but it just dawned on me the other day that this might come back and bite me one day

 

any ideas?


Well, I am going to start out not by judging, but by saying this is a disappointing situation.  It is actually considered fraud to apply for credit under false pretence.  This is much like applying for credit under someone else's name, so I was assume the reprecussions would be the same.  With that said, I am not clear on how you were able to apply for a business credit card without having a EIN (TaxID) for the business.  This is much like a social security number to a person.  Anyhow, with this said, likely this card is solely in your name and you are solely responsible for it because if this company does not exist then it does not have a credit rating.  If the company doesn't have a credit rating, then most lenders will require the owner/majority shareholder of the company to secure and be responsible for the debt.  My advice would be to pay off the card, open a card in just your name and close that card.  IMHO not only would you be looking at fraud, but there could also be tax implications.  May want to seek the advice of a lawyer to see the best way of handling this.


This is totally false given the information OP has provided. 

 

First of all, there must be intent to defraud.  Additionally, false information must be provided that materially effects the credit grantor's lending decision.  As with many so-called business cards, the card is decisioned based upon the applicant's personal credit history without the need for an EIN or DUNS and such is precisely the case with the credit card OP obtained. 

 

The application for the Southwest Airlines business credit card issued by Chase does not in any way, shape or form ask for an EIN or even, for that matter, an address or telephone number of the business; it is strictly a personal liability credit card as is the business card from, for example, Nationwide Bank.

 

Brasilesportes, no, the sky is not falling.  There is no harm, no foul.  You should have no problems with Chase over the issue and definitely will have no legal problems. 

 

IAALBNYL
Message 7 of 33
Senior Contributor

Re: applying for a business card without having or owning a business


ngerasimatos wrote:

Almost all business cards now required your business tax ID


Not true.

 

Other than Ink, business cards offered by Chase do not usually require an EIN.  The business card offered by Nationwide Bank does not.  Neither do several offered by Citibank.

 

The vast majority of business cards are nothing other than strictly personal liability cards that allow you to stick on the name of your enterprise and with the added benefit of being able to apply for almost as many supplemental cards as you wish without fee. 

IAALBNYL
Message 8 of 33
Established Member

Re: applying for a business card without having or owning a business

I didn’t think you were judging me in anyway Tazman81 I appreciate non-sugar coated information


I’m certainly not an expert here (hence the reason I posed the question); but my instinct is telling me that O6 is spot on here

 

O6 what do you suggest I do now?  

  1. cancel it? 
  2. leave it open and stop using it? 
  3. or just keep on using it as I’ve been doing for the past several years, and do nothing  

 

Message 9 of 33
Senior Contributor

Re: applying for a business card without having or owning a business


brasilesportes wrote:

I didn’t think you were judging me in anyway Tazman81 I appreciate non-sugar coated information


I’m certainly not an expert here (hence the reason I posed the question); but my instinct is telling me that O6 is spot on here

 

O6 what do you suggest I do now?  

  1. cancel it? 
  2. leave it open and stop using it? 
  3. or just keep on using it as I’ve been doing for the past several years, and do nothing  

 


#3. 

 

Enjoy the card and use it as you usually do. 

IAALBNYL
Message 10 of 33