topic Re: New business credit with BK on personal credit. Suggestions in Business Credit

New business credit with BK on personal credit. Suggestions

anniea4001 — Tue, 05 Apr 2022 01:28:33 GMT

Seeking guidance on how to start building business credit.

I just registered my business, literally this week.

I do have a BK on my personal report. Filled on Dec 2020, discharged on March 2021.

Since then I have managed to build and nice emergancy fund and do some rebuilding. I have several cards, all with low usage and paid always on time. Current FICO scores range from 650-680ish.

Because of my BK I am unsure on who to turn to when it comes to starting my business credit journey but I would really like to do so as soon as possible so I do not have to use my personal credit cards or money to grow my business.

Any guidance and/or advise is highly appreciated.

Re: New business credit with BK on personal credit. Suggestions

pizzadude — Tue, 05 Apr 2022 16:26:33 GMT

What personal revolving accounts do you have open right now ? Your existing creditors might be a good place to start initially if they are BK friendly.

Re: New business credit with BK on personal credit. Suggestions

anniea4001 — Tue, 05 Apr 2022 16:38:58 GMT

@pizzadude

Currently have 2 CapOne cards, 1 Ollo, 1 Mercury, 1 Penfed.

Auto loan with Wells Fargo.

Express card.

And an Alphaeon account.

I was thinking that maybe CapOne might be a good place to start but I have no idea how their business credit cards work.

Re: New business credit with BK on personal credit. Suggestions

pizzadude — Tue, 05 Apr 2022 17:14:02 GMT

@anniea4001 wrote:
@pizzadude
Currently have 2 CapOne cards, 1 Ollo, 1 Mercury, 1 Penfed.
Auto loan with Wells Fargo.
Express card.
And an Alphaeon account.

I was thinking that maybe CapOne might be a good place to start but I have no idea how their business credit cards work.

Cap1 is more BK friendly than some creditors, you could try apping with them if any of their biz cards seem to be a good fit. You'll need to enter the required biz info with your application and it would be a 3X HP, and you'll be PG'ing the account as well.

Re: New business credit with BK on personal credit. Suggestions

LP007 — Tue, 05 Apr 2022 22:20:59 GMT

Cap 1 double whammy reports on both your personal & business CRs. Don't like them or Discover for this reason. What does Express mean? My 1st big business CCs were from Amex although my BK7 discharge was 8 y/o before I had the nerve to apply. Not sure what 18 m/o discharges look like to them.

Re: New business credit with BK on personal credit. Suggestions

anniea4001 — Wed, 06 Apr 2022 00:08:19 GMT

@LP007 Express is a retail store.

I know CapOne does multiple inquiries for personal credit cars but I was not sure how the business part works with them. That's why I figured I'd ask for suggestions.

For what I understand Chase and Amex pull personal reports so I'm sure I won't be able to get anything with them for a long while.

Re: New business credit with BK on personal credit. Suggestions

FinStar — Wed, 06 Apr 2022 03:00:13 GMT

@anniea4001 wrote:
@LP007 Express is a retail store.

I know CapOne does multiple inquiries for personal credit cars but I was not sure how the business part works with them. That's why I figured I'd ask for suggestions.
For what I understand Chase and Amex pull personal reports so I'm sure I won't be able to get anything with them for a long while.

Since a variety of lenders may use personal CRs for their review, can you share with the community which creditors were included in BK?

Yes, Chase will not approve any applications until BK is completely off CRs, there can be exceptions but any post-BK approvals are rare and not the norm. AmEx can be flexible after 61 months, provided they were not burned in BK.

Re: New business credit with BK on personal credit. Suggestions

anniea4001 — Wed, 06 Apr 2022 10:01:12 GMT

@FinStar

I burned Discover, Credit One and Bank of America. BoA was like $3500. Everything else was just a few hundred dollars. My BK was mainly medical debt and an old car loan with a credit union I was sued for just before SOL ran out.

Re: New business credit with BK on personal credit. Suggestions

LP007 — Wed, 06 Apr 2022 22:55:48 GMT

@anniea4001 wrote:
@FinStar
I burned Discover, Credit One and Bank of America. BoA was like $3500. Everything else was just a few hundred dollars. My BK was mainly medical debt and an old car loan with a credit union I was sued for just before SOL ran out.

*Kevin Hart voice*

(Mod cut - not here, please)

https://www.cnbc.com/select/medical-debt-credit-report/

Re: New business credit with BK on personal credit. Suggestions

anniea4001 — Tue, 12 Apr 2022 03:28:06 GMT

Well, CapOne was a bust. I applied for their lower tier business card which is intented to help you build business credit and got denied. Triple pull for nothing...

Any other suggestions?

Re: New business credit with BK on personal credit. Suggestions

FinStar — Tue, 12 Apr 2022 03:32:58 GMT

@anniea4001 wrote:
Well, CapOne was a bust. I applied for their lower tier business card which is intented to help you build business credit and got denied. Triple pull for nothing...

Any other suggestions?

Sorry to hear Capital One biz didn't pan out. We can scratch them off the list. Since they typically tend to report to personal CRs, probably not a good idea anyway. Have you received any communication about the denial and the reason(s)? Also, I believe you mentioned the business is fairly new. How is it structured, Sole Prop, LLC, S-Corp..?

Re: New business credit with BK on personal credit. Suggestions

anniea4001 — Tue, 12 Apr 2022 22:45:39 GMT

@FinStar No reason yet, waiting on the letter.

The business is an LLC, and I am the sole owner.

Honestly, I have enough personal credit and savings to do what I need to do but I much would rather keep business and personal matters separate. That is the only reason I am looking into building busines credit as early as possible.

Re: New business credit with BK on personal credit. Suggestions

anniea4001 — Tue, 12 Apr 2022 22:48:40 GMT

Also, CapOne is so darn weird.

I requested a CLI on one of my cards last week. Declined because the account was "too new". I applied for the business card and was declined. Then they turn around and the next day they give me a $500 CLI on the same card it was "too new" last week....

Re: New business credit with BK on personal credit. Suggestions

pizza1 — Wed, 13 Apr 2022 22:21:59 GMT

@anniea4001

With your BK barely being a year old, you can forget the following...US Bank, Amex, BOFA, Chase, and Citibank..basically ALL of the big dogs...

I would say your options right now are 30/60 day net term accounts, and business Lowe's account. Also, for a business major cc, you will more than likely have to do a secured card, which isn't bad to help start.

Business credit is even tougher to get with personal BK on file. I was 5 years post BK DC, and 1 month-6months post incorporating before I got anything.

Try Uline, Quill, Lowes Pro Services for net accounts. If you have a US Bank or FNBO by you, and you're within geo to them, go into the bank, and ask to open a business checking account, and inquire about a secured business card.

Re: New business credit with BK on personal credit. Suggestions

anniea4001 — Thu, 14 Apr 2022 11:55:18 GMT

@pizza1 thank you for the feedback.

I knew I have no hopes with the big banks. Neither did personal or business credit. It's gonna be a while until I'm able to even consider banks such as Chase and I'm ok with it. For personal credit I've managed to get some nice lines of credit soon after BK and I can manage with that u

I was actually looking into Wells Fargo secured business card. I figured it would probably be a good way to start. I will look into US bank and FNBO.

Re: New business credit with BK on personal credit. Suggestions

LP007 — Thu, 14 Apr 2022 18:06:00 GMT

@anniea4001 wrote:
@pizza1 thank you for the feedback.
I knew I have no hopes with the big banks. Neither did personal or business credit. It's gonna be a while until I'm able to even consider banks such as Chase and I'm ok with it. For personal credit I've managed to get some nice lines of credit soon after BK and I can manage with that u

I was actually looking into Wells Fargo secured business card. I figured it would probably be a good way to start. I will look into US bank and FNBO.

Sounds like a plan. Get in the door first. Are you FNBO geo-eligible? They've clamped down on outsiders.

I know this is CC App country (moderators), but also try taking micro secured personal loans ($200-$1000) against yourself at low low negotiated APRs like 1% at future big CC banks/CUs. NFCU pledge loans are a good start. Build, build, build.

Re: New business credit with BK on personal credit. Suggestions

anniea4001 — Thu, 14 Apr 2022 22:00:26 GMT

Well, FNBO is a no go. Outside of their geo service area.

Also no US Banks here either.

So it's looking like Wells Fargo night be the next best thing.

Re: New business credit with BK on personal credit. Suggestions

Anonymous — Fri, 15 Apr 2022 04:52:58 GMT

Hi there!
FNBO required me to provide my info for a waiting list.
Cap1 was my best bet after a BK that dc'd in Aug of '18. I'm building with Cap1 spark business, but not ideal with it's interest rate. Still, it's a foot in the door. Maybe you will qualify closer to 2 yrs post BK. Quill is good for starting out. If you spend $100, before taxes and discount, and you will see the option for being invoiced. I hope this helps you. It's a steep climb for sure but you will get there. 😄

Re: New business credit with BK on personal credit. Suggestions

anniea4001 — Mon, 25 Apr 2022 21:54:14 GMT

So FNBO was a big no. Closest branch is like 2 hours away and I was told I just do not qualify when I called in to inquire about services.

CapOne was a big no as well. Finally got the letter saying I was denied due to "too many inquires".

Wells Fargo in the other hand was more than happy to approve me for a secured business card. Yay

Next thing I am doing is Quill and Uline.

Re: New business credit with BK on personal credit. Suggestions

LP007 — Mon, 25 Apr 2022 22:12:54 GMT

Good start. I hear Union Bank can be had for a $500 start. Not sure if you're geo-blocked or not.