New to this...How does personal credit affect your ability to get business credit?

[DrDG]

I am in the process of rebuilding my credit. My scores were pretty good (High 600's low 700's) Life happened, and I feel behind on credit cards, have maxed out cards, and student loans kicked in. I've gotten myself totally caught up and intend to have the 4 lowest cards paid off (or at least down below 10%) by the end of June. I have not applied for any business credit as of yet, but I would like to. I have been incorporated 4 years now. How will my personal scores impact my buisness credit, and what would be the first steps in establishing positive business credit? Thank you for your help and suggestions. 

Current FICO Scores (3-28-17) TransUnion: 506 Experian: 497 Equifax: 472<br>Wallet:<br>Wells Fargo Secured $300, Capital One Platinum Prestige $3000, Capital One Venture $15,000, Costco American Express $1200, Discover $6500, Neiman Marcus $700, PayPal $500<br>Rebuilding with goals of reaching 750.

[Anonymous]

The scores are pretty low for any business cards. I have thin file but scores were around 750 when I applied for Amex, Citi. Both declined. You need to have established credit on personal side and good scores. When you hit high 600, you may consider applying for Capital one spark classic for business. But Capital one business cards will report to your personal. So, be mindful when applying.

[Anonymous]

I think that Classic Spark starts around 600.  That is the easiest business card to get. It does report on your report as well as business  Most other business cards want a score over 700 I believe. 

[DrDG]

Thank you so much for your reply. I really appreciate the information.  I am not going to apply for anythnig as of yet. I will wait until my scores hit at least 600. Do other business cards report to your personal credit as well? 

[DrDG]

Thanks for your reply. Do other cards usually report to personal credit also, or just that Capital One?

[Anonymous]

Capital one for sure as my utilization was affected by it and score came down. So, leaned the lesson the hard way!! 😀

[Anonymous]

Cap 1 Spark does report.  Start with the classic once you hit 600 score and after 6 months see if they will  product change to a regular.  The clssic is 1% cash back, the free regular is 1.5% and $49? one is 2%.  All these report on your report. Chase does not report but is a lot harder to get. Amex I can't remember I don't think so but not sure.  Look at the way rewards are given out when you get ready to upgrade.  Amex and Chase both have bonus areas but they are not the same .  Amex has very narrow widith of the bonus.  

[SouthJamaica]

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@DrDG wrote:

I am in the process of rebuilding my credit. My scores were pretty good (High 600's low 700's) Life happened, and I feel behind on credit cards, have maxed out cards, and student loans kicked in. I've gotten myself totally caught up and intend to have the 4 lowest cards paid off (or at least down below 10%) by the end of June. I have not applied for any business credit as of yet, but I would like to. I have been incorporated 4 years now. How will my personal scores impact my buisness credit, and what would be the first steps in establishing positive business credit? Thank you for your help and suggestions. 

Current FICO Scores (3-28-17) TransUnion: 506 Experian: 497 Equifax: 472<br>Wallet:<br>Wells Fargo Secured $300, Capital One Platinum Prestige $3000, Capital One Venture $15,000, Costco American Express $1200, Discover $6500, Neiman Marcus $700, PayPal $500<br>Rebuilding with goals of reaching 750.

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The best way to start establishing positive business credit, as opposed to personal credit, is to establish as many net-30 type accounts as you can with companies from which your business buys office supplies, or other merchandise.

The best business credit card to start out with is Capital One Spark, but there are a couple of negatives about it: (a) they usually do a hard pull from all 3 bureaus and (b) they report to your personal credit bureaus.

It's easier to get an Amex business charge card than it is to get a business credit card.

[Anonymous]

I would also get a D&B number and set up a profile for the business.  That is free.   As a result of our D&B Profile for our biz we have picked up one or two clients