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I'm about to lose my biggest credit line

CashBackQueen
Frequent Contributor

I'm about to lose my biggest credit line

I recently changed my business from a sole proprietorship to an LLC. I contacted Capital One to let them know about the change so they can updated on my Spark card account. They just called me back and informed me that my card will be closed in the next 60 days but I am welcome to apply for a new card with the new EIN and company information. I told them it's still the exact same company, just a different legal structure. Thought this would be something simple and transferable but I guess not. Hopefully when I reapply I will get just as good a limit if not better. I was granted a $2,000 starting limit at the very beginning of my rebuild, now I'm more than a year in so hopefully that'll have a positive impact.

Should I reapply now or after it's closed? I'd prefer to apply sooner than later to make the transition smoother. Am I even allowed a third card with them? I believe both my Quicksilver and Spark started as subprime versions before I upgraded them.
BK7 DC 1/2/18 • Progress as of 3/22/21:


TCL: $40,600 • UTIL: 2% • AZE2
Message 1 of 14
13 REPLIES 13
CreditUnionFan
Valued Contributor

Re: I'm about to lose my biggest credit line

I know someone who has four cards, a personal, one under one business, and two under another business. 

 

It's a bit of a risk with Capital One, since they will still HP all three bureaus, even if they intend to deny.  The 1.5/2 percent is hard to ignore.

I was going to garden... Honest!
Message 2 of 14
SouthJamaica
Super Contributor

Re: I'm about to lose my biggest credit line


@CashBackQueen wrote:
I recently changed my business from a sole proprietorship to an LLC. I contacted Capital One to let them know about the change so they can updated on my Spark card account. They just called me back and informed me that my card will be closed in the next 60 days but I am welcome to apply for a new card with the new EIN and company information. I told them it's still the exact same company, just a different legal structure. Thought this would be something simple and transferable but I guess not. Hopefully when I reapply I will get just as good a limit if not better. I was granted a $2,000 starting limit at the very beginning of my rebuild, now I'm more than a year in so hopefully that'll have a positive impact.

Should I reapply now or after it's closed? I'd prefer to apply sooner than later to make the transition smoother. Am I even allowed a third card with them? I believe both my Quicksilver and Spark started as subprime versions before I upgraded them.

Maybe you should go for an Amex card; that's better for business credit anyway.

 

I wouldn't rush back to Capital One; they're an idiot outfit, as they just demonstrated.

 

 


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 716 TU 747 EX 715

Message 3 of 14
Revelate
Moderator Emeritus

Re: I'm about to lose my biggest credit line


@SouthJamaica wrote:

@CashBackQueen wrote:
I recently changed my business from a sole proprietorship to an LLC. I contacted Capital One to let them know about the change so they can updated on my Spark card account. They just called me back and informed me that my card will be closed in the next 60 days but I am welcome to apply for a new card with the new EIN and company information. I told them it's still the exact same company, just a different legal structure. Thought this would be something simple and transferable but I guess not. Hopefully when I reapply I will get just as good a limit if not better. I was granted a $2,000 starting limit at the very beginning of my rebuild, now I'm more than a year in so hopefully that'll have a positive impact.

Should I reapply now or after it's closed? I'd prefer to apply sooner than later to make the transition smoother. Am I even allowed a third card with them? I believe both my Quicksilver and Spark started as subprime versions before I upgraded them.

Maybe you should go for an Amex card; that's better for business credit anyway.

 

I wouldn't rush back to Capital One; they're an idiot outfit, as they just demonstrated.

 

 


Um, SJ a LLC and a SP are legal different entities... you can't just swap cards, it'd be like my giving my recently approved CIP to you TBH no difference at all.  It doesn't matter if the SP is the owner of the LLC or not, they are different legally.

 

As a result there's going to be an application anyway for the new entity; not sure why the existing Spark had to be closed but I don't know the conversation between the OP and C1 in this case... if my baby corp does ever get rolling I don't intend to close the SP cards unless I have to by lender fiat.

 

I'm not a fan of Cap 1 for business cards as I don't want them reporting to my personal credit at all, but it's not a bad card to be sure... in my case both Chase and Amex fill my own business spend better.




        
Message 4 of 14
Richard_Kiel
Valued Member

Re: I'm about to lose my biggest credit line

Keep in mind Cap1 will still report to personal so weigh whether you really want it. We got an Amex with rewards categories, and recently Chase Ink with 1.5% general rewards, and an old bank branded Elan card with 1.25% general rewards. We don't do annual fee cards and we do cash rewards only. My strategy would be go for the Cap1 out the gate unless you need to save the hard pulls. Because they are likely to approve. Get the 1.5% cash and interest free period. Then get the Chase 1.5% down the road when the Cap1 interest free period expires. Maybe throw the Amex in somewhere. This way you are riding interest free cards for as long as possible without sacrificing rewards.
Message 5 of 14
WhatTickaWhat
Established Contributor

Re: I'm about to lose my biggest credit line

Three little biz words...

 

Chase

BOA

Amex



[Penfed Platinum Rewards 10k][TD Ameritrade-2k][BOA Cash Rewards 22k][NFCU cashRewards 33k][TDcash 5k][IHG 14.2k][BOA 15.8k][Amazon Prime Store 10k][Amazon PrimeVS 500][Amex BCE 6k][WellsFargo CashWise 14k][PNC Core 24.5k][WalmartMC 11k][SearsMC 15k][Lowes 35k][Toyota 21k][Capital One 5250][BP 10k][Home Depot 24.2k][Chase FU 6.6k][Discover 22.5k]
- [BOA CR $12.5k][Amex SC+ $13.5k][Amex B4B $35k][Chase Ink $45k][PNC $26.5k]
BT'oholic and OPM Lover! Chunk'n it hard and often!
Message 6 of 14
CreditCuriosity
Moderator

Re: I'm about to lose my biggest credit line


@WhatTickaWhat wrote:

Three little biz words...

 

Chase

BOA

Amex


If ops scores are current all three of those won't happen.  Cap1 is their best bet

Message 7 of 14
SouthJamaica
Super Contributor

Re: I'm about to lose my biggest credit line


@Revelate wrote:

@SouthJamaica wrote:

@CashBackQueen wrote:
I recently changed my business from a sole proprietorship to an LLC. I contacted Capital One to let them know about the change so they can updated on my Spark card account. They just called me back and informed me that my card will be closed in the next 60 days but I am welcome to apply for a new card with the new EIN and company information. I told them it's still the exact same company, just a different legal structure. Thought this would be something simple and transferable but I guess not. Hopefully when I reapply I will get just as good a limit if not better. I was granted a $2,000 starting limit at the very beginning of my rebuild, now I'm more than a year in so hopefully that'll have a positive impact.

Should I reapply now or after it's closed? I'd prefer to apply sooner than later to make the transition smoother. Am I even allowed a third card with them? I believe both my Quicksilver and Spark started as subprime versions before I upgraded them.

Maybe you should go for an Amex card; that's better for business credit anyway.

 

I wouldn't rush back to Capital One; they're an idiot outfit, as they just demonstrated.

 

 


Um, SJ a LLC and a SP are legal different entities... you can't just swap cards, it'd be like my giving my recently approved CIP to you TBH no difference at all.  It doesn't matter if the SP is the owner of the LLC or not, they are different legally.

 

As a result there's going to be an application anyway for the new entity; not sure why the existing Spark had to be closed but I don't know the conversation between the OP and C1 in this case... if my baby corp does ever get rolling I don't intend to close the SP cards unless I have to by lender fiat.

 

I'm not a fan of Cap 1 for business cards as I don't want them reporting to my personal credit at all, but it's not a bad card to be sure... in my case both Chase and Amex fill my own business spend better.


They didn't have to close the old card. They could have asked OP if he or she wanted to close it. Instead they just took it on themselves, pulling the rug out from under OP.

 

Also I disagree with your original premise. They could have changed the corporate name and the employers ID.

 

Capital One is a no-account no-class organization with no regard for its customers.


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 716 TU 747 EX 715

Message 8 of 14
CreditUnionFan
Valued Contributor

Re: I'm about to lose my biggest credit line

Chase has their Ink Preferred and Ink Cash cards that are great for any business.  1.5 on all purchases (Ink Pref) or 1-5% (Ink Cash) are good options.  

 

BoA also has a 1.5 % card.  Wells Fargo does also.

 

Amex Blue Business Plus is a solid 2% card for business purchases. 

 

If you don't live near a Capital One branch, to get the in-branch version of their 2% card with no annual fee, then BoA, Chase, Amex, or Wells (another 1.5% card) only report to business credit report.

I was going to garden... Honest!
Message 9 of 14
Morpho
Valued Contributor

Re: I'm about to lose my biggest credit line


@WhatTickaWhat wrote:

Three little biz words...

 

Chase

BOA

Amex


One word. Bankruptcy.

Chapter 7 discharged in 2018 according to her signature.

Message 10 of 14
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