topic Re: Business Credit Worth it? in Business Credit

Business Credit Worth it?

CivalV — Fri, 18 Feb 2022 17:32:29 GMT

So I am new to business credit. I've been purchasing gear with my personal credit cards for my business up until I started reading its smarter to purchase with a business credit card. All my scores are currently 650 due to my new car lease. Its only about 3 months of reporting.

Will a business credit card report to my personal credit? I am currently employed making over $100K, I also have my photography business which is a NY State approved LLC. I am trying to figure out if its worth applying for the business credit. I am looking to make a $6K purchase for my business and I am just looking for all of my options before pulling the trigger. Any information or experiences would be great.

I bank with Chase & currently have 10K in credit on my personal account. I also have 10K in credit with Citi Bank. My current utilization is on the high side of 50% due to the recent purchases for my business.

Re: Business Credit Worth it?

pizzadude — Fri, 18 Feb 2022 21:04:26 GMT

Yes, one of the main reasons that people pursue business credit is to keep their business purchases from showing on personal credit reports. Most biz credit card issuers do not report on personal CRs, but some do, there's a stickied thread in this board that has details. If you're considering a large purchase then I would definitely look into a business CC so that your utilization isn't impacted.

Re: Business Credit Worth it?

SouthJamaica — Fri, 18 Feb 2022 21:35:09 GMT

@CivalV wrote:
So I am new to business credit. I've been purchasing gear with my personal credit cards for my business up until I started reading its smarter to purchase with a business credit card. All my scores are currently 650 due to my new car lease. Its only about 3 months of reporting.

Will a business credit card report to my personal credit? I am currently employed making over $100K, I also have my photography business which is a NY State approved LLC. I am trying to figure out if its worth applying for the business credit. I am looking to make a $6K purchase for my business and I am just looking for all of my options before pulling the trigger. Any information or experiences would be great.

I bank with Chase & currently have 10K in credit on my personal account. I also have 10K in credit with Citi Bank. My current utilization is on the high side of 50% due to the recent purchases for my business.

Yes it's very important to make your business purchases with a business credit card rather than a personal card. Mixing up personal and business expenses causes tax, accounting, legal, and bookkeeping nightmares.

No they do not report to your personal credit, except for 3 outliers of which I am aware (TD Bank, Capital One, and Discover).

Your scores are a bit low to get a business revolver, though. It would probably be easier for you to qualify for an Amex business charge card, but those (a) have to be repaid within the billing cycle and (b) carry large annual fees.

Re: Business Credit Worth it?

ToughFistFight — Sat, 19 Feb 2022 02:28:27 GMT

Absolutely worth it. However, get your personal scores up. Figure out what is holding those back. People work, imho, backwards and start to build business credit when their personal isnt the best. Its much easier to get your biz credit going when your personal is high.

Re: Business Credit Worth it?

Citylights18 — Wed, 23 Feb 2022 07:32:41 GMT

If you can get some good business credit cards you might be able to cancel some of your personal.

I am trying that right now with a AMEX Business Blue Plus which earns MR points to replace an AMEX Gold which has an AF of $250.

Re: Business Credit Worth it?

CivalV — Mon, 28 Feb 2022 21:06:29 GMT

@Citylights18 wrote:
If you can get some good business credit cards you might be able to cancel some of your personal.

I am trying that right now with a AMEX Business Blue Plus which earns MR points to replace an AMEX Gold which has an AF of $250.

I currently hold two Amex cards on my personal. I am wondering if I apply for a business card if I will recieve a new pull. I might wait to raise my scores since they dropped after my lease 3 months ago.

Re: Business Credit Worth it?

pizzadude — Tue, 01 Mar 2022 17:15:33 GMT

@CivalV wrote:
@Citylights18 wrote:
If you can get some good business credit cards you might be able to cancel some of your personal.

I am trying that right now with a AMEX Business Blue Plus which earns MR points to replace an AMEX Gold which has an AF of $250.
I currently hold two Amex cards on my personal. I am wondering if I apply for a business card if I will recieve a new pull. I might wait to raise my scores since they dropped after my lease 3 months ago.

Most existing AMEX card holders will only receive a SP when applying for a new AMEX card, but it's not guaranteed.

Re: Business Credit Worth it?

SouthernCredit — Tue, 01 Mar 2022 17:52:48 GMT

@CivalV wrote:
@Citylights18 wrote:
If you can get some good business credit cards you might be able to cancel some of your personal.

I am trying that right now with a AMEX Business Blue Plus which earns MR points to replace an AMEX Gold which has an AF of $250.
I currently hold two Amex cards on my personal. I am wondering if I apply for a business card if I will recieve a new pull. I might wait to raise my scores since they dropped after my lease 3 months ago.

My wife just opened an Amex business card for her business; she has existing Amex accounts, and we have not seen a HP yet. YMMV.