How does a BUSINESS CREDIT CARD application affect your Consumer credit report pro/con ???

[sean31732]

Still struggling to understand how applying for a new BUSINESS CREDIT CARD will affect my personal credit profile. I am interested in starting a business, but I would like to get a credit card (first), in order to purchase the things that I need. (Office Furniture, a Dedicated phone line, Business Computer, etc.)

I would prefer to keep track of all of those expenses where it is 100% separate and apart from my personal credit lines. In other words, I want to avoid confusion with any of my business-related expenses along the way.

The first thing I would like to know is...what IMPACTS will opening a Business Credit Card have on my personal lines of credit and/or my Personal Credit Report if at all ???

Overall Score? Age of Credit Accounts? Number of Hard Inquiries? Utilization Rates? Will any of these things be affected by applying for a new Business Credit Card??

Or are all these things separate and apart from my Personal Credit Report? I've heard there is separate credit reporting agency? 

I plan to apply for a Mortgage Loan in 2022, so I'm closely monitoring the number of brand credit card applications and inquiries I have on my report. I want to cap my new (HARD PULL) applications at THREE MAX. After this, I will be gardening for at least 1 year. Would a new Business Card application count as one of my new inquiries on my personal credit report...or not?

I would appreciate any relevant info on this topic. Thanx.😊

[Anonymous]

Most business cards are separate and will not affect personal credit except for inquiry unless you default at which time they would report to personal credit. Most will do a hard pull on your personal credit for approval.

Amex and Chase business will not report to personal while most Cap 1 and Discover business cards will report to personal. Those that do report to personal will affect your personal reports.

[sean31732]

---

@Anonymous wrote:

Most business cards are separate and will not affect personal credit except for inquiry unless you default at which time they would report to personal credit. Most will do a hard pull on your personal credit for approval.

Amex and Chase business will not report to personal while most Cap 1 and Discover business cards will report to personal. Those that do report to personal will affect your personal reports.

---

Thanks for the info. Appreciate it !!! 👍

[Anonymous]

Most business credit cards do not report to personal credit, unless you default, so other than the initial inquiry the card shouldn't affect your personal credit at all.  The exceptions I know about are Crapital One and Discover.  They both report to personal credit, so their utilization and usage will report to personal credit and therefore affect it.

[SouthJamaica]

---

@sean31732 wrote:

Still struggling to understand how applying for a new BUSINESS CREDIT CARD will affect my personal credit profile. I am interested in starting a business, but I would like to get a credit card (first), in order to purchase the things that I need. (Office Furniture, a Dedicated phone line, Business Computer, etc.)

I would prefer to keep track of all of those expenses where it is 100% separate and apart from my personal credit lines. In other words, I want to avoid confusion with any of my business-related expenses along the way.

The first thing I would like to know is...what IMPACTS will opening a Business Credit Card have on my personal lines of credit and/or my Personal Credit Report if at all ???

Overall Score? Age of Credit Accounts? Number of Hard Inquiries? Utilization Rates? Will any of these things be affected by applying for a new Business Credit Card??

Or are all these things separate and apart from my Personal Credit Report? I've heard there is separate credit reporting agency? 

I plan to apply for a Mortgage Loan in 2022, so I'm closely monitoring the number of brand credit card applications and inquiries I have on my report. I want to cap my new (HARD PULL) applications at THREE MAX. After this, I will be gardening for at least 1 year. Would a new Business Card application count as one of my new inquiries on my personal credit report...or not?

I would appreciate any relevant info on this topic. Thanx.😊

---

1. Yes, you will have from 1 to 3 hard pulls depending on the lender with whom you apply. Those will appear in your personal credit. Chase and Capital One are known to double pull frequently, Capital One often triple pulls.

2. As to the accounts, most do not report at all to personal. Exceptions are: Capital One, Discover, and TD Bank. There is some scuttlebutt about Capital One having a new Spark card that does not report to personal, but I know nothing about that.  As to those that do report to personal, the effect would be identical to the effect adding a personal account would have.

[Anonymous]

If you're looking for the "least" impact such as a "possible" SP approval and already an Amex customer then I suggest going with them first. It's not guaranteed but several DP's indicate SP approval for existing cardholders, plus they can often be generous SL based on your history with them.  Notice: Individual results may vary.

The only drawback with them is that they do not seem to report activity on CB's at all, only SBFE which I do not have access to. So having their Biz cards may not help much in your plight to acquire more credit. Whereas USB and BoA do report activity.