Business Credit without DUNS #

RKBAGUY · ‎11-30-2017

Just wondering if it's necessary to have a DUNS number to build business credit, or if that's just the preferred method.

I'm still in the process of rebuilding my personal credit. My personal profile is 'thin' right now, but my scores are good (750/745/753) and rising with the hope of applying for a car loan in spring. Though I've only gone two billing cycles using AZEO, it seems things are going well so far.

Back in August I opened a business checking account at Wells Fargo (where I also was approved for a personal card) and at a last trip to the branch to send a wire transfer, the manager asked if I was interested in business credit. My understanding is that the lending decision for business credit is predicated initially upon personal credit - and probably the average amount you have in your business account in any given month.

It would be great to be able to have some "headroom" in terms of liquidity to be able to do things like purchase inventory or those other needs that often arise when, for example, a customer pays late or there are unexpected expenses. It might even be preferable to have the car loan under the business itself, rather than having me as a personal guarantor. However, I've been managing the business well within our means so while nice to have, business credit is not necessary for me.

My concern is, of course, what impact would a business credit application have, and what would be the impact of a decline? In other words, "is the juice worth the squeeze?"

Interested to hear your thoughts.

Anonymous · ‎11-30-2017

In vast majority of cases, a DUNS# is definitely not required to build business credit. Approvals are almost entiirely based on your personal credit and as an example, I have business cards from Chase (2), Amex (2), Citi, Bank of America and Barclays. Applied as a Sole Propiertor using only SSN

RKBAGUY · ‎12-01-2017

@Anonymous wrote:
In vast majority of cases, a DUNS# is definitely not required to build business credit. Approvals are almost entiirely based on your personal credit and as an example, I have business cards from Chase (2), Amex (2), Citi, Bank of America and Barclays. Applied as a Sole Propiertor using only SSN

So you're seeing no conflict or risk where rebuilding my personal FICO scores are concerned? Since the bank uses personal scores upon which to base a business credit decision, will a business line of credit help my personal scores, also?

Anonymous · ‎12-01-2017

@RKBAGUY wrote:
@Anonymous wrote:
In vast majority of cases, a DUNS# is definitely not required to build business credit. Approvals are almost entiirely based on your personal credit and as an example, I have business cards from Chase (2), Amex (2), Citi, Bank of America and Barclays. Applied as a Sole Propiertor using only SSN
So you're seeing no conflict or risk where rebuilding my personal FICO scores are concerned? Since the bank uses personal scores upon which to base a business credit decision, will a business line of credit help my personal scores, also?

Almost never will a business credit line affect your personal credit scores unless you default. To my knowledge the only business cards/accounts that report to your personal credit are CapitalOne and TD Bank. So, no business lines won't, except in rare cases, help your scores.

Anonymous · ‎12-04-2017

However, many will pull your personal credit to determine whether or not you qualify and so you will get an inquiry ding - this may or may not hurt your chances to get personal credit. But my business Amex cards do not even show up on my personal report.

Jazdown · ‎12-05-2017

Do they report on your personal profile since you applied as a sole proprietor?

Anonymous · ‎12-05-2017

@Jazdown wrote:
Do they report on your personal profile since you applied as a sole proprietor?

No, has noting to do with what type of business you apply under. The few cards like the CapOne Spark card and TD Bank business cards that report to your personal credit reports do so no matter your business structure is. The vast majority of business cards like those from Chase, Amex, BoA, Barclays and Citi do not report (unless you default) to your personal credit reports no matter what you list your buisness structure as on the application.