topic Re: First business card: Costco Visa in Business Credit

First business card: Costco Visa

imaximous — Wed, 01 Aug 2018 18:33:13 GMT

Today, I got approved for my first ever business card. I'd been debating to get one for some time (already have the Costco personal version), but I couldn't decide on which because I'm not too thrilled with the rewards on the business cards I could qualify for. No AMEX due to blacklisting, and I don't think I stand a chance with Chase with a 2011 BK7 still reporting.

Scores just above 750 and personal cards utilization at probably less than 3%. Business income about 3k a month as a side gig.

I got instantly approved for a $4k SL, so I was wondering if anyone can advise on getting a CLI upon approval. Is that even possible or am I wasting my time trying?

TIA for any feedback!

Re: First business card: Costco Visa

CH-7-Mission-Accomplished — Wed, 01 Aug 2018 19:57:18 GMT

Congrats! May I ask if you had to personally guarantee this card? My small business is a C corporation and I have one business card through Amazon. It did not require a PR. I would like to get some more under my business name. Thanks.

Re: First business card: Costco Visa

imaximous — Wed, 01 Aug 2018 20:46:14 GMT

Full disclosure: I know very little about business credit.

I applied for this card as a sole proprietor. I don't have a real business name, Tax ID or EIN. I'm just trying to separate expenses now that I'm seeing more side income.

This card does require a guarantor, but it doesn't report to personal credit unless delinquent. My understanding is that there's only a handful of cards that don't require a personal guaranty, and you can find a way around it based on banking relationship and making a ton of business income. Sorry if that wasn't helpful at all.

Re: First business card: Costco Visa

CH-7-Mission-Accomplished — Wed, 01 Aug 2018 20:58:42 GMT

No this is what I wanted to know. I assumed in might require a PG. I'm not opposed to giving a PG, I just don't want inquiries to my personal credit damaging my score, and I don't want business account showingup on my personal credit reports. Thanks again!

Re: First business card: Costco Visa

imaximous — Wed, 01 Aug 2018 21:21:14 GMT

No problem. You'll definitely get an inquiry. I got a ding on EX right away. You shouldn't lose more than 3 points for a hit, and you won't have to worry about another tradeline on your personal reports. So the "damage" is negligible, IMO.
I don't think you can get any of the major cards without a HP.

Re: First business card: Costco Visa

CreditCuriosity — Wed, 01 Aug 2018 22:55:06 GMT

Citi majors require a PG being at least Costco and AA business cards

Re: First business card: Costco Visa

imaximous — Thu, 02 Aug 2018 01:54:47 GMT

@CreditCuriosity wrote:
Citi majors require a PG being at least Costco and AA business cards

Any insight on getting a CLI upon approval?

Re: First business card: Costco Visa

Anonymous — Thu, 02 Aug 2018 04:36:21 GMT

@imaximous wrote:
@CreditCuriosity wrote:
Citi majors require a PG being at least Costco and AA business cards
Any insight on getting a CLI upon approval?

Yes you can get a CLI on approval. I just did that in fact. But be forewarned you might get another hard pull. I got an Equifax HP for original application and then immediately upon getting the card asked for CLI and then got an Experian hard pull and it was approved. I just used online credit limit increase request. This was on Citi AA Biz. I am sure it works same on Costco Biz.

Re: First business card: Costco Visa

imaximous — Thu, 02 Aug 2018 13:45:08 GMT

@Anonymous wrote:
@imaximous wrote:
@CreditCuriosity wrote:
Citi majors require a PG being at least Costco and AA business cards
Any insight on getting a CLI upon approval?
Yes you can get a CLI on approval. I just did that in fact. But be forewarned you might get another hard pull. I got an Equifax HP for original application and then immediately upon getting the card asked for CLI and then got an Experian hard pull and it was approved. I just used online credit limit increase request. This was on Citi AA Biz. I am sure it works same on Costco Biz.

Thank you for the feedback. I figured it'd be another HP from all the DPs I found online but I was hoping it wouldn't be. Was it worth it to you in terms of the increase? Since this is my first business card, I'm not sure how generous they'll be or if they'll offer anything at all. I suppose there's only way to find out.

Re: First business card: Costco Visa

Anonymous — Thu, 02 Aug 2018 14:05:15 GMT

@imaximous wrote:
@Anonymous wrote:
@imaximous wrote:
@CreditCuriosity wrote:
Citi majors require a PG being at least Costco and AA business cards
Any insight on getting a CLI upon approval?
Yes you can get a CLI on approval. I just did that in fact. But be forewarned you might get another hard pull. I got an Equifax HP for original application and then immediately upon getting the card asked for CLI and then got an Experian hard pull and it was approved. I just used online credit limit increase request. This was on Citi AA Biz. I am sure it works same on Costco Biz.
Thank you for the feedback. I figured it'd be another HP from all the DPs I found online but I was hoping it wouldn't be. Was it worth it to you in terms of the increase? Since this is my first business card, I'm not sure how generous they'll be or if they'll offer anything at all. I suppose there's only way to find out.

I don't really care about limits but I needed a couple hundred dollars more to handle a recurring monthly bill. I asked for 500 dollars more as it was all I needed to handle the bill. As utilization had no effect on me as it is on business report I only asked for what I needed. I can pay the charges the day after they hit. I just have a 5k Amex Business and a 4k Citi spend I need to meet at the same time. So I am not sure how generous they would be.

Re: First business card: Costco Visa

imaximous — Thu, 02 Aug 2018 15:11:50 GMT

@Anonymous wrote:
@imaximous wrote:
@Anonymous wrote:
@imaximous wrote:
@CreditCuriosity wrote:
Citi majors require a PG being at least Costco and AA business cards
Any insight on getting a CLI upon approval?
Yes you can get a CLI on approval. I just did that in fact. But be forewarned you might get another hard pull. I got an Equifax HP for original application and then immediately upon getting the card asked for CLI and then got an Experian hard pull and it was approved. I just used online credit limit increase request. This was on Citi AA Biz. I am sure it works same on Costco Biz.
Thank you for the feedback. I figured it'd be another HP from all the DPs I found online but I was hoping it wouldn't be. Was it worth it to you in terms of the increase? Since this is my first business card, I'm not sure how generous they'll be or if they'll offer anything at all. I suppose there's only way to find out.
I don't really care about limits but I needed a couple hundred dollars more to handle a recurring monthly bill. I asked for 500 dollars more as it was all I needed to handle the bill. As utilization had no effect on me as it is on business report I only asked for what I needed. I can pay the charges the day after they hit. I just have a 5k Amex Business and a 4k Citi spend I need to meet at the same time. So I am not sure how generous they would be.

Gotcha. I'm new to business cards, and I knew this card won't report to personal credit, but I wasn't sure how important utilization is for business scores. That's why I figured I'd ask for a higher limit, so I can keep util low.

But, I just decided that since it's another hit, I'm going to wait a while to build some history, and hope I can grow it like the personal cards with SPs every 6 months. Thanks again.