topic Re: Business Credit Card Denial and Questions in Business Credit

Business Credit Card Denial and Questions

Anonymous — Sat, 27 Feb 2021 04:39:34 GMT

I am new to these forums and new to the intricacies of credit scoring. I have one credit card, a Citibank card, that I got back in 2007. It had served my needs and I never thought of anything else. I have a small story and a few questions that I would appreciate this forum's advice on.

I recently inherited my father's business and thought it would be convenient to have a business credit card so I can make a few business purchases online or in retail stores without using my personal credit card. I decided on the Chase Ink Business Cash credit card. I applied online and received a letter in the mail that the appplication was denied for the following reasons:

Few revolving accounts opened long enough to establish credit history (This seems accurate. I have 1 revolving account with citibank)
Insufficient balance in deposit and investment accounts with us (This also seems accurate. I have no relationship with Chase)

I was still a bit unprepared for a denial. I researched online and found this forum and the Chase recon number. I called. The woman on the other end grilled me a bit about the business, business income, # of employees, etc... I was a bit flustered but answered as best I could. She indicated that she pulled a Dun & Bradstreet credit report and that report was blank. For that reason she could not approve my reconsideration. My dad didn't use credit when he ran the business - but I still became concerned that my credit may be worse than I think.

The denial letter from Chase indicated that they pulled my credit from Experian and my credit score is 802 using the Card Acquisition Risk Score V2. Should I worry at all about this denial?

Next, I still wanted a business credit card and decided on American Express. Because I was still flustered from the denial with Chase I decided to call American Express instead of apply online. I told the representative my entire story and asked her to recommend a card for me because I thought that would improve my odds of being accepted. She recommended the Plum card. I told her to apply and I was instantly approved. The problem is that the Plum card doesn't quite fit my business needs. I will probably not recoup the $250 annual fee. Should I just suck it up and use this card for the time being? When would it be appropriate to apply for another business credit card or consider closing the Plum card or is that a bad idea? Will the Plum card benefit my personal credit at all?

Lastly, still flustered from my missteps I thought it might be worthwhile to open a second personal credit card - but not yet. I checked for pre-approvals from Chase and Amex and I have none. Is this normal because I just recently applied with those two companies? Will pre-approvals start to show up for me again? When? When would be a good time to apply for a personal credit card? I believe both Chase and Amex did a hard pull on my credit within a few days of each other.

My credit score with Equifax is 789 before those hard pulls. Chase reported my credit score of 802. I think all that's on my credit is the one credit card and I've never been late on a payment and have always paid in full.

Re: Business Credit Card Denial and Questions

Anonymous — Sat, 27 Feb 2021 04:59:28 GMT

You probably have a thin credit profile which is subject to more denials with Chase

Thin is typically 3 or fewer accounts

Deposit/investments = trailing ADB for past couple months, could attempt to have it equal the minimum starting limit for the card you want for better results

Chase biz cards are very hard to get compared to Amex biz, especially now

I suggest reading a little more around the internet and forums before applying for anything too hastily

Re: Business Credit Card Denial and Questions

GApeachy — Sat, 27 Feb 2021 12:51:15 GMT

@Anonymous wrote:

The denial letter from Chase indicated that they pulled my credit from Experian and my credit score is 802 using the Card Acquisition Risk Score V2. Should I worry at all about this denial?

Next, I still wanted a business credit card and decided on American Express. Because I was still flustered from the denial with Chase I decided to call American Express instead of apply online. I told the representative my entire story and asked her to recommend a card for me because I thought that would improve my odds of being accepted. She recommended the Plum card. I told her to apply and I was instantly approved. The problem is that the Plum card doesn't quite fit my business needs. I will probably not recoup the $250 annual fee. Should I just suck it up and use this card for the time being? When would it be appropriate to apply for another business credit card or consider closing the Plum card or is that a bad idea? Will the Plum card benefit my personal credit at all?

Lastly, still flustered from my missteps I thought it might be worthwhile to open a second personal credit card - but not yet. I checked for pre-approvals from Chase and Amex and I have none. Is this normal because I just recently applied with those two companies? Will pre-approvals start to show up for me again? When? When would be a good time to apply for a personal credit card? I believe both Chase and Amex did a hard pull on my credit within a few days of each other.

My credit score with Equifax is 789 before those hard pulls. Chase reported my credit score of 802. I think all that's on my credit is the one credit card and I've never been late on a payment and have always paid in full.

You have great scores. You're biz profile just needs to age so getting your foot in the door with Amex is tremendous! Use the Plum, pif, rinse and repeat. In a few months check your biz offers. Don't go applying for anything else (personal or biz) enjoy what you have and keep inquiries off of your cr's.

Next (several months down the road) you could app for another Amex Biz, I really like the Blue Business Cash card, no AF and of course the cash back. Amex cards groooooowwww! Read the Amex 3x's cli thread to see what I'm talking about. Here ya go: https://ficoforums.myfico.com/t5/Credit-Card-Applications/The-Definitive-Amex-3X-CLI-Guide/m-p/1811071#M5911

Still using and building biz credit with Amex, hit up Chase Biz....give that a lot of time though. Perhaps a year if you want to be safe. Take a peek at this biz credit card chart to see how Amex reports to D&B and you'll be good-to-go. Here ya go:https://ficoforums.myfico.com/t5/Business-Credit/Which-Bank-Biz-Cards-Report-To-Biz-Credit-Reports/td-p/5542736

Congrats on your new biz venture, use your new card well and be patient....it'll all come together for you. I know cuz I had to do the baby steps and then it all fell into place. Btw, welcome to MyFico, stick around and ask away, lots of mf peeps here eager to help.

Re: Business Credit Card Denial and Questions

Anonymous — Sat, 27 Feb 2021 19:00:11 GMT

@Anonymous wrote:
I am new to these forums and new to the intricacies of credit scoring. I have one credit card, a Citibank card, that I got back in 2007. It had served my needs and I never thought of anything else. I have a small story and a few questions that I would appreciate this forum's advice on.

I recently inherited my father's business and thought it would be convenient to have a business credit card so I can make a few business purchases online or in retail stores without using my personal credit card. I decided on the Chase Ink Business Cash credit card. I applied online and received a letter in the mail that the appplication was denied for the following reasons:
Few revolving accounts opened long enough to establish credit history (This seems accurate. I have 1 revolving account with citibank)
Insufficient balance in deposit and investment accounts with us (This also seems accurate. I have no relationship with Chase)
I was still a bit unprepared for a denial. I researched online and found this forum and the Chase recon number. I called. The woman on the other end grilled me a bit about the business, business income, # of employees, etc... I was a bit flustered but answered as best I could. She indicated that she pulled a Dun & Bradstreet credit report and that report was blank. For that reason she could not approve my reconsideration. My dad didn't use credit when he ran the business - but I still became concerned that my credit may be worse than I think.

The denial letter from Chase indicated that they pulled my credit from Experian and my credit score is 802 using the Card Acquisition Risk Score V2. Should I worry at all about this denial?

Next, I still wanted a business credit card and decided on American Express. Because I was still flustered from the denial with Chase I decided to call American Express instead of apply online. I told the representative my entire story and asked her to recommend a card for me because I thought that would improve my odds of being accepted. She recommended the Plum card. I told her to apply and I was instantly approved. The problem is that the Plum card doesn't quite fit my business needs. I will probably not recoup the $250 annual fee. Should I just suck it up and use this card for the time being? When would it be appropriate to apply for another business credit card or consider closing the Plum card or is that a bad idea? Will the Plum card benefit my personal credit at all?

Lastly, still flustered from my missteps I thought it might be worthwhile to open a second personal credit card - but not yet. I checked for pre-approvals from Chase and Amex and I have none. Is this normal because I just recently applied with those two companies? Will pre-approvals start to show up for me again? When? When would be a good time to apply for a personal credit card? I believe both Chase and Amex did a hard pull on my credit within a few days of each other.

My credit score with Equifax is 789 before those hard pulls. Chase reported my credit score of 802. I think all that's on my credit is the one credit card and I've never been late on a payment and have always paid in full.

IMO I would apply online for a business revolving AMEX that has no annual fee. When that card has been opened for 61 days, apply for a CLI of 3x the current credit limit, and then use that card for a year before applying for anymore cards.

Re: Business Credit Card Denial and Questions

Anonymous — Sat, 27 Feb 2021 22:18:04 GMT

Thank you everyone who has replied. My plan was to just use the Plum card for business and hope that helps build my credit and relationship with amex and then in 6 months apply for an amex personal credit card like the Blue Cash Everyday. The personal card is unrelated to business but I figure it is important to have at least a 2nd personal card and it will help with the thin credit profile.

The other issue is that I would prefer an amex business credit card like the Blue Business Cash card with no annual fee, but since I got the Plum card I don't want to rock the boat for a while - so I'll stick with the plum card for a year or two? Is that a good plan?

Re: Business Credit Card Denial and Questions

gingerflower — Sun, 28 Feb 2021 00:05:37 GMT

@Anonymous

Welcome to FICO Forums and Congratulations on your Amx Business Plum Charge card. I would definitely stick with the plum card and in 12 months apply for the Amx Blue Rev Cc with no annual fee. Built up your business credit profile with Amx.

Re: Business Credit Card Denial and Questions

Anonymous — Sun, 28 Feb 2021 04:06:46 GMT

@Anonymous wrote:
Thank you everyone who has replied. My plan was to just use the Plum card for business and hope that helps build my credit and relationship with amex and then in 6 months apply for an amex personal credit card like the Blue Cash Everyday. The personal card is unrelated to business but I figure it is important to have at least a 2nd personal card and it will help with the thin credit profile.

The other issue is that I would prefer an amex business credit card like the Blue Business Cash card with no annual fee, but since I got the Plum card I don't want to rock the boat for a while - so I'll stick with the plum card for a year or two? Is that a good plan?

Okay, but consider if you apply now so close to a previous approval, the app will almost certainly be a soft pull, since they already have a fresh credit pull on you. Just something to consider...

Re: Business Credit Card Denial and Questions

randomguy1 — Tue, 09 Mar 2021 15:30:12 GMT

@Anonymous wrote:
@Anonymous wrote:
Thank you everyone who has replied. My plan was to just use the Plum card for business and hope that helps build my credit and relationship with amex and then in 6 months apply for an amex personal credit card like the Blue Cash Everyday. The personal card is unrelated to business but I figure it is important to have at least a 2nd personal card and it will help with the thin credit profile.

The other issue is that I would prefer an amex business credit card like the Blue Business Cash card with no annual fee, but since I got the Plum card I don't want to rock the boat for a while - so I'll stick with the plum card for a year or two? Is that a good plan?
Okay, but consider if you apply now so close to a previous approval, the app will almost certainly be a soft pull, since they already have a fresh credit pull on you. Just something to consider...

Even if it's a HP, it's only one. I would go ahead and apply for the Blue myself personally.