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I run a small business. That has a decent turnover, its two years old, (will complete 2nd year tax in 2011) and I have paid taxes. I have been using my personal credit cards for business use, but needed a business card. Capital one have been consistently sending me offers for a business credit card that helps build business credit with a $39 annual fee. I fell for the bait thinking I will at least get a limit that will help me make minimum business expenses which is around $2000 per month.
I get approved instantly online, and then get a letter : Congratulations, you can now enjoy and consolidate all business expenses with your new business card. CREDIT LINE : $ 500.00. - DID THEY EXPECT ME TO BUY CANDY WITH IT ? - THAT TOO WITH A $39 ANNUAL FEE.
I need advice :
a. Can I return this card once it arrives ? If that is possible then what's the procedure ? Call the 1800 number and say I don't want it ?
b. Is there a way to appeal this ridiculous decision ? Maybe with a regulatory authority ? As this is a clear predatory practice. I would not mind a refusal and a loss of 4 credit point which I can built. But this is an insult. My personal credit card at Capital one has a $2000 credit limit. .
Any other opinions / advice shall be appreciated.
Do you know your current Fico Scores?
You can't return this, you have already had 3 credit pulls and the account is now reporting to all your personal credit reports as well, I would not do business with Capital for Business cards because they do report to your personal credit.
With decent scores and a PIF card, I would turn to Business Gold from Amex.
If you want revolving options, check out PNC or USbank
That seems like a reasonable limit for a very new business in todays credit environment. I would have expected a limit to match your personal CapOne card if the business was a few years older.
You have the inquiries and the new TL reporting so it would only hurt you to cancel. I suggest using it and PIF. Ask for a CLI after 6-12 months. I don't see how you have anything to lose.
@GregB wrote:That seems like a reasonable limit for a very new business in todays credit environment. I would have expected a limit to match your personal CapOne card if the business was a few years older.
You have the inquiries and the new TL reporting so it would only hurt you to cancel. I suggest using it and PIF. Ask for a CLI after 6-12 months. I don't see how you have anything to lose.
The Capital One approval has nothing to do with business, it's completely personal credit.
I also believe Cap1 currently has a freeze on customer initiated CLI, especially on the business accounts, but maybe someone can chime in on that.
My mastercard I just got has a CL of $250. Buys fuel for my vehicle. Until you build credit, personal cards.