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Are business cards worth it?

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MudkipsRKooL
Regular Contributor

Are business cards worth it?

I'm towards my middle/late game of credit game. I plan on getting PLOC and some business credit. I've been eyeing Amex's BBC and Chase's CIU for awhile now. My business is off and on again. I really just need startup capital to invest, but sometimes it doesn't pan out and my business goes offline for a year or two before i can "restart" it again. Do you guys think it's worth it to "invest" or have credit cards in my business' name for awhile to get that credit or is it too easy and I would just wait til i "need" it. 

Current score: 778ex | 774tu | 777eq
INQ status: 1/24, 1/12

Currrent Cards:




Future:
Message 1 of 10
9 REPLIES 9
JoeRockhead
Senior Contributor

Re: Are business cards worth it?

One of the biggest advantages of business cards like the ones you mentioned are that while they require  a PG (personal guarantee) (as do most business cards these days) for approval. Unless you default on them, The account itself, their usage, and payment history isn't reported to your personal credit reports. This alone makes them a big plus to have, especially when they offer the first year at 0% interest and you can utilize that to your advantage.

 

There are several business cards available to new start-ups, and sole prop businesses, full or part time. I guess the question you have to ask yourself is the timing of when 0% for 12 months is going to be the most advantageous to you.

Message 2 of 10
MudkipsRKooL
Regular Contributor

Re: Are business cards worth it?

yea I'll wait til all my ducks in a row lol. My third year at it only 1 years was profitable. I'll wait til I have my business plan and buying list down.

Current score: 778ex | 774tu | 777eq
INQ status: 1/24, 1/12

Currrent Cards:




Future:
Message 3 of 10
pizzadude
Credit Mentor

Re: Are business cards worth it?

What types of business expenses do you anticipate incurring as you're starting up ?   Unless you already have cash in the bank for this, biz credit is probably the easiest option for now and as mentioned above won't reflect on your personal reports. 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 4 of 10
cashorcharge
Community Leader
Super Contributor

Re: Are business cards worth it?

Establishing some business credit is easy...even if you're in a "pause" state at the moment or for the forseeable future.  You will be asked about income/revenue/expenses though if you don't have an exact number today, don't fret...you can estimate what you'll make this year and with decent personal credit...you won't be asked for additional info.

 

Depending on your current situation with AMEX, you can likely get that account without a HP if you are already in their ecosystem

For Chase, even with a relationship, you WILL likely get a HP but nothing extraneous when applying.

I have also found USBank to be rather generous of late and you'll find similar other approvals on here and they are always offering a 0% BT upfront if you need that sort of availability.

 

Getting a Line of Credit is a bit more entailed as you'll be asked those same questions and you "may" get a HP depending on the lender...though rules for that type of account are stricter.  There are rules for Sole Prop or Corp only...again, depending on lender...and more lenders will want to see bank statements that show the cash flow mirroring what you've asked for in Credit matching to what you claim you are making.  So if you're not prepared for that much data or scrutiny (or in pause mode)....setting up those credit cards to establish a baseline will help and then when you are ready for a more mature credit offering, be prepared to show a lot more info.

 

Good Luck

Message 5 of 10
SouthJamaica
Mega Contributor

Re: Are business cards worth it?


@MudkipsRKooL wrote:

I'm towards my middle/late game of credit game. I plan on getting PLOC and some business credit. I've been eyeing Amex's BBC and Chase's CIU for awhile now. My business is off and on again. I really just need startup capital to invest, but sometimes it doesn't pan out and my business goes offline for a year or two before i can "restart" it again. Do you guys think it's worth it to "invest" or have credit cards in my business' name for awhile to get that credit or is it too easy and I would just wait til i "need" it. 


If your personal credit is good, yes it's a good idea to get the cards now when you don't really need them.

 

I don't know what you mean by the term "worth it"? They can certainly be useful if you have a business.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 703 TU 704 EX 687

Message 6 of 10
CorpCrMgr1
Established Contributor

Re: Are business cards worth it?

Chase or Amex should work. Good luck!

Message 7 of 10
xenon3030
Valued Contributor

Re: Are business cards worth it?

The biz cards are designed to separate the personal expenses from biz. Some biz cards have 0% APR in the first year, without AF, and they should be especially good for startups with limited funding in early stages.

 

So, in summary, they are "worth" for biz purposes.


Fico8: EX~EQ~TU~810 (12 month goal~840).
BOA (CCR, UCR), Chase (CFF, CSP, Amazon, CIC, CIU), US Bank (Cash+, AR, Go, Ralphs), Discover, Citi (CCC, DC, SYW), Amex (BCP, HH, Biz Gold, BBC, BBP), Affinity CR, Cap1(Walmart), Barclay View.
Message 8 of 10
Kasuito39
Frequent Contributor

Re: Are business cards worth it?

it's worth having both personal and business credit cards not only for tracking, perks, leverage  etc. but also for Uncle Sam in case he comes knocking. 

Message 9 of 10
URHomeInvestments
Regular Contributor

Re: Are business cards worth it?

I plan on never applying for personal credit again; only will use business credit.   I find having business credit has been invaluable to growing my income from rental properties. 

Message 10 of 10
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