topic obtaining credit for a brand new LLC in Business Credit

obtaining credit for a brand new LLC

jvn — Sat, 08 Jun 2024 01:21:08 GMT

I started an LLC last week. I am wondering if I can apply for a business credit card before I have shown any revenue. I would love to get a rewards card as I am about to spend a decent amount of money. I have a personal FICO score of 770 with a few lates 5 years 9 months ago. I have 22 open accounts and 11 closed with an average age of 8 years. My oldest account is 19 years and I actually have several others in that range. 2 hard pulls and low utilizaton.

Does anyone have any experience getting credit for a brand new LLC that they would be willing to share?

Re: obtaining credit for a brand new LLC

mchang124 — Sat, 08 Jun 2024 05:13:49 GMT

Yes you can go and start getting business credit cards for your business. Banks will simply pull your personal credit since you will be with your personal guarantee; but it will depend on the bank since you stated you have a few late payments from over 5 years ago. If you have an established relationship with who you bank with already, that may be a good place to start.

you will just need a few items:

LLC/Corp file number

EIN

"Expected" revenue is okay to fill into the application, and not actual.

Job Title, i usually use "operations manager"

Stated income can be what you make from your current job

Re: obtaining credit for a brand new LLC

JoeRockhead — Sat, 08 Jun 2024 12:14:44 GMT

As stated above, the majority of mainstream lenders are going to require a PG and many will allow you to use projected income for the business in addition to any income you have from your current employment.

Based on what you shared about your credit profile, you don't mention what cards you have, but if you already have a personal American Express card the chances are strong that you could get a SP only approval for one of their business cards. Both the Amex Blue Business Plus, and the Blue Business Cash are no AF and offer rewards, but with an annual cap. Any of the Chase Ink cards are good cards, the Ink Unlimited for example gets 1.5% CB with no annual cap.

There are others from USB, BoA, WF, etc... Ideally you want to add cards that don't report to your personal credit (they all will if you default). For that reason I'd caution against going for Capital One business cards as they will do a triple HP and the only core cards they offer that don't report monthly to personal credit are the Spark 2% Cash Plus and the Venture X business. They're both charge cards requiring PIF every month and both have an AF. $150 a year for the Cash Plus (refundable if you spend $150k during the year) and $395 AF on the Venture X. They're both listed as for Excellent credit.

If you haven't already you can check out the pinned post at the top of this board for more on business cards that don't report to personal.

Re: obtaining credit for a brand new LLC

cashorcharge — Mon, 10 Jun 2024 22:04:07 GMT

Agreed with starting with banks you already do business with.

AMEX is probably the easiest...assuming those lates weren't with them and you're already in their eco-system.

As @JoeRockhead mentioned, they will pull your personal CB as well. Is this a side business or your only source of income? If side, you can report your income as they will ask for both revenue and income so that may help.

Re: obtaining credit for a brand new LLC

URHomeInvestments — Wed, 12 Jun 2024 14:35:19 GMT

I also recommend the Amex if you already have personal cards with them. Our first business cards for our LLCs was the Chase Ink.