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Business credit no pg

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Established Member

Business credit no pg

I have a ein number no llc operating as sole proprietorship, will i be able to get no pg or how does this work
Message 1 of 12
11 REPLIES 11
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Valued Contributor

Re: Business credit no pg

Couple of questions. What kind of credit are you looking for? Credit from suppliers, loans, or credit cards? Why do you want no pg credit?
Message 2 of 12
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Established Member

Re: Business credit no pg

Just in case things dont go right i don't want it on my personal report, i do know that a few cc want a pg i just want to do business the right way and protect my assets
Message 3 of 12
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Re: Business credit no pg

Im looking to branch off with the business i have now into real estate so home depot lines of credit maybe a gas card here and there and a small emergency loan
Message 4 of 12
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Valued Contributor

Re: Business credit no pg

"no llc operating as sole proprietorship"

 

not recommended. As a sole prop you are saying me and the business are one and the same. You can still be sued and you will lose because you will not be able to show the business is a separate entity.

 

You want to protect yourself. Banks want to protect themselves too. So if you say "I'm not going to personally guarantee this debt" the banks wants someone who will. That's were your corporation comes in. A corporation is like a legally created person. That "person" will pg the debt. Well since you just created this person and this person has no credit no bank is going to give you credit without you personally guaranteeing the debt. But that's fixable. You build up the corporation credit just like you would an 18 year old with no credit.

 

This is probably the most definitive free guide I have ever come across on how to do:

https://www.creditcardinsider.com/learn/definitive-guide-building-business-credit/

 

Just so you know, because of abuses during the 2008 meltdown banks have pretty much eliminated the no pg Visa/MC. There is only one left, the Sams Club Mastercard. I think there was one other but I can't recall the name.

But if you want supplies or store cards (you mentioned home depot) no pg is available once you build up your credit. Lowes also has a no pg but again its not like you can get it on day one.

 

Good luck. Check out the Business section here on myFico lots of people are activily building busines credit.

Message 5 of 12
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Valued Contributor

Re: Business credit no pg

One more thing. Sign up for Nav.com

You can get some free business credit reports. You mentioned you are already in business. You might have file already.

Message 6 of 12
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Frequent Contributor

Re: Business credit no pg


@Freddie64 wrote:
I have a ein number no llc operating as sole proprietorship, will i be able to get no pg or how does this work

Just to add to what Morpho said.  No PG business credit lines backed by Citi, Home Depot, Staples, TSC, Office Depot, Sunoco, Exxon/Mobil, require a min of 3 years business credit history before they'll consider an application without a PG.  Dell Computer, Lowes, Amazon Net 55, JCP & Menards, might approve applications without PG if you can demostrate a year or so of payment history.  I would start with Net 30 accounts with Quill, SupplyWorks, Grainger and Uline.  

 

I have a new LLC and was denied for just about every credit line I applied for.  I used Quill and SupplyWorks every month to build payment history and at about a year with 2 lines reporting on Experian and nothing on D&B (No Paydex Score) I was approved for Amazon Net 55, Menards, JCP, Dell, Lowes.  Citi has denied me several times and told me I should stop applying until the my LLC has 3 plus years of reporting history.  Sams Mastercard is likely to have the same position, but the store card might be possible with less than 3 years.  SyncBank gave the LLC JCP, Amazon & Lowes, but will not approve the Conoco card, citing lack of accounts reporting.  

 

Keep in mind business credit is like personal, it's a slow journey that improves with age and responsibility.  So I would recommend you file for an LLC, get an EIN for the LLC and then start with Supply Works, Quill, Uline, Grainger and submit credit application for those vendors, don't just order and pay invoice, although they may require you do that a few times before issuing your LLC an actual credit line, but do make an effort to obtain a credit line after your business becomes an LLC.

Message 7 of 12
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Established Member

Re: Business credit no pg

Thank you
Message 8 of 12
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Established Member

Re: Business credit no pg

Thanks
Message 9 of 12
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Starting llc in Indiana

So should i go through legal zome to set up llc
Message 10 of 12
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