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Chase Credit Card for a business

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Anonymous
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Chase Credit Card for a business

Hello!

 

My husband lost/closed his business in 2010 due to a bad economy and we just couldn't hold on any longer.  After closure, we now have a credit card that was used for the business for $12,500.00.  We are trying to rebuild his credit so that we can get a home loan in the next year but this is a major hurdle for us to jump through.  We do not have $12,500.00 to pay off a card and are not sure what our best approach should be to resolving this debt.  We are hoping to qualify for a VA loan.

 

I was hoping for some advice on what to do with this.  Also, this is not our only debt that we have.  We do have medical bills that are approximately $3000.00 that we need to pay off for a shoulder surgery.  

 

I am just lost about what our best plan of action should be.

 

Thanks!

Message 1 of 6
5 REPLIES 5
llecs
Moderator Emeritus

Re: Chase Credit Card for a business

Even though it's closed, is it being paid on time now? Or is it charged-off?

 

If current, keep paying it. Your lender will still factor it into your DTI, but won't require you to pay it off. If a CO, then prepare to pay it off. Most all lenders will require that. For the medical, it's iffy. Prepare to pay it, but some have been lenient towards medical debts.

Message 2 of 6
RobertEG
Legendary Contributor

Re: Chase Credit Card for a business

Business cards normally dont report to individual consumer credit reports, as credit reports are limited to "credit or insurance to be used primarily for personal, family, or household purposes,"  FCRA 603(d)(1).

 

You are saying that he has a business card that is reporting to his personal credit file?

 

 

Message 3 of 6
llecs
Moderator Emeritus

Re: Chase Credit Card for a business


@RobertEG wrote:

Business cards normally dont report to individual consumer credit reports, as credit reports are limited to "credit or insurance to be used primarily for personal, family, or household purposes,"  FCRA 603(d)(1).

 

You are saying that he has a business card that is reporting to his personal credit file?

 

 


I can't speak to OP's specifically, but most biz cards report to personal credit reports. These involve TLs opened via agreeing to a personal guarantee in the org. CC agreement.

Message 4 of 6
RobertEG
Legendary Contributor

Re: Chase Credit Card for a business

I have a Chase business card, and it does not report.

Message 5 of 6
llecs
Moderator Emeritus

Re: Chase Credit Card for a business

It's a YMMV on the creditor and card type. Most throwbacks from the WaMu days have their Chase reporting to personal. All others outside WaMu are reporting in Business that theirs don't. Business CCs like Amex or NFCU don't report to personal reports. Business CCs like Capital One and Discover do report to personal credit reports. YMMV.

Message 6 of 6
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