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Strategy for Business CC Applications

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Established Member

Strategy for Business CC Applications

Hi everyone, first time poster here! This forum has been incredibly helpful to me as I've built up my credit over the past three years or so and tried to start "adulting". I'm hoping some of the veterans here can help me with my planning.

 

I have seven personal cards now, all of which I am very happy with, and I think I'm done for now with my personal credit card journey. That said, I really want to get a couple business credit cards to I can start building business credit. My FICO scores are down a bit because of my low AAOA after my recent card spree, so I'm wondering if anyone has advice on my approval odds and how I should time my applications.

 

Cards I want: Capital One Spark Cash, Chase Ink Business Preferred.

Would also consider Bank of America Business Advantage Cash Rewards if I have better odds at being approved for it than the others. I am a platinum preferred member.

 

Scores: EX FICO 8 724, TU FICO 8 731

Oldest account: 13 yr 4 months

AAOA: 4 yrs 10 months on EX (3yrs 4months actual)

Income: high 5-digits for myself, $0 for the company.

3 accounts opened last year

Account utilization: 0%

Avail credit: $78k


Starting Score: EX 715
Current Score: EX 707
Goal Score: EX 730


Take the myFICO Fitness Challenge
11 REPLIES 11
Super Contributor

Re: Strategy for Business CC Applications

How many accounts have you opened in the last two years? If the number exceeds five, cross Chase off your list. They have a 5/24 rule; no more than 5 new accounts from any lender in the past 24 months or it's an auto decline. On top of that, they have stringent underwriting on the business cards anyway, and they aren't fond of businesses with no established income from what I've seen.

 

Probably your better bet is BOA; of the three you mention they are probably the easier to get approved with, but I have heard of them asking for verification documents and such so be prepared to provide that. Capital One isn't bad, but you're looking at 3 pulls and their underwriting has become pretty tough too.

Message 2 of 12
Established Member

Re: Strategy for Business CC Applications

Thanks for the comment Smiley Happy

I'm under 5/24 (4 accounts total in past 24, and the oldest will be gone next month).

It sounds like my biggest issue is the fact that I'm trying to get a card for a pre-revenue business... do you think a score of about 20 points higher will help? Experian projects I'll be at 744 in a few months. Or am I most likely going to need to wait until I have money coming in for the business?


Starting Score: EX 715
Current Score: EX 707
Goal Score: EX 730


Take the myFICO Fitness Challenge
Message 3 of 12
Super Contributor

Re: Strategy for Business CC Applications


@jatt wrote:

Thanks for the comment Smiley Happy

I'm under 5/24 (4 accounts total in past 24, and the oldest will be gone next month).

It sounds like my biggest issue is the fact that I'm trying to get a card for a pre-revenue business... do you think a score of about 20 points higher will help? Experian projects I'll be at 744 in a few months. Or am I most likely going to need to wait until I have money coming in for the business?


For business cards, I would focus more on business income and history vs a few more points on your score. Banks have overall tightened up with scrutinizing business apps, partially thanks to people applying with non-legitimate "businesses". So I think a track record and income with the business will help you.

Message 4 of 12
New Member

Re: Strategy for Business CC Applications

Since it hasn't been mentioned yet, have you looked into the AMEX BBP? 2x MR on all spend. I was approved recently as an existing customer and did a self referral, 10000 MR w 3k/3mos + $75 (already credited, havent even recieved BBP yet, yay amex!).

Most places I sought out for CC info mentioned the BBP and ink cards as the staples of business cards atm.
Message 5 of 12
Super Contributor

Re: Strategy for Business CC Applications


@jatt wrote:

Hi everyone, first time poster here! This forum has been incredibly helpful to me as I've built up my credit over the past three years or so and tried to start "adulting". I'm hoping some of the veterans here can help me with my planning.

 

I have seven personal cards now, all of which I am very happy with, and I think I'm done for now with my personal credit card journey. That said, I really want to get a couple business credit cards to I can start building business credit. My FICO scores are down a bit because of my low AAOA after my recent card spree, so I'm wondering if anyone has advice on my approval odds and how I should time my applications.

 

Cards I want: Capital One Spark Cash, Chase Ink Business Preferred.

Would also consider Bank of America Business Advantage Cash Rewards if I have better odds at being approved for it than the others. I am a platinum preferred member.

 

Scores: EX FICO 8 724, TU FICO 8 731

Oldest account: 13 yr 4 months

AAOA: 4 yrs 10 months on EX (3yrs 4months actual)

Income: high 5-digits for myself, $0 for the company.

3 accounts opened last year

Account utilization: 0%

Avail credit: $78k


Of the 3 cards you mentioned, Chase Ink is the hardest to get, and Capital One Spark is the easiest to get.

 

However, I would avoid Capital One because (a) it often triple pulls, (b) it reports to your personal credit,  and (c) I have found Capital One to be a low-class bank.

 

I consider Chase and American Express the best.

 

I can't speak to your question about a "pre-revenue" business, as I've never applied "pre-revenue".


FICO8 EQ 744 TU 781 EX 748 Total revolving limits 713500 (592500 reporting)
Message 6 of 12
New Contributor

Re: Strategy for Business CC Applications

The Spark cash card will show up on your personal credit reports so it'll lower your AAoA even more and it'll add to the 5/24, but you mentioned that one will come off soon anyways so that shouldn't be a big deal. It just so happens that these are the first three business cards that I applied for. My scores were 20-30 points lower than yours. First applied for the spark cash first, approved. 3 months later applied for the chase ink card approved. 1 month later applied for the BoA card. I'm also a platinum reward member (previously platinum honors), but the underwriter didn't care about my rewards tier status, didn't care how much money I put through my business accounts there. He looked for something that he didn't like on my report and used that excuse to give me a low starting limit. I've heard that it might be different if you apply in branch, but if you do it online or over the phone don't expect it to be easier than with CapOne or Chase unless your reports don't show any flaws. 

Message 7 of 12
Contributor

Re: Strategy for Business CC Applications

If you’re already in the Amex ecosystem then the BBP is a no brainer, and they’re also fairly lenient in what you consider income is for your business. If you think you’ll make at least 10k in the next 12 months then put 10k and once approved you can always get the 3x CLI.

I agree with chase being a pessimist when it comes to a business having no proven income, but for DP my new LLC partnership with 1 month 0 income applied for CIP and was held up on the 7-10 message and when we called they said we were denied and asked how much our revenue was and we told them zero. Zilch. Nada. However the projected is 15k/month 1st quartet and doubling each consecutive quarter after. Approved for 16k.

I would stay away from the spark as much as possible as it’s reporting in personal as well as the triple pull which can hurt you in the long run when you apply for other cards. Try to get cards from issuer who only do single pull or two at most to keep your file clean.
Gardening till 12/2019!




Message 8 of 12
Established Member

Re: Strategy for Business CC Applications

Thank you so much for the replies!

 

That’s a great point about capital one reporting to personal.. They’re seeming like a bad choice at least for the near term future.

 

Thanks for the DP with Chase. I have a business checking account with them and have a few clients now - woohoo! - so maybe I’ll wait until I can make a fair estimate on business rev and then pull the trigger.

 

Interesting. I’m surprised B of A didn’t care more about the platinum honors! I had them pegged as the most relationship-driven bank in my mind.. I'm thinking I'll wait until after Chase with them, especially bc I'm 4/24.

 

I completely forgot to mention that I have an Amex Simply Cash Plus - approved for 10k last year. Advertising as a 3% category is golden. Because of that I think I’m fine with Amex.

 

Do any of you happen to know for sure if Chase or B of A report to the bureaus, and which ones? I’ve been seeing conflicting reports..


Starting Score: EX 715
Current Score: EX 707
Goal Score: EX 730


Take the myFICO Fitness Challenge
Message 9 of 12
New Contributor

Re: Strategy for Business CC Applications

My BoA card shows up on my DnB report. My chase card shows up on my Experian report. No idea what is reported on my Equifax. I've read that Chase reports to all of the main business credit bureaus (DnB, Experian, and Equifax), but it hasn't reported to my Experian yet (and maybe not equifax?)

Message 10 of 12