Ok, want to confirm a couple of things as I establish credit for a couple of businesses.
First is my legal/consulting practice - I have been a solo attorney since September. Applied for an received an Amex Gold at that time; applied and was denied a working capital LOC by US Bank (my credit score has subsequently gone up 80 points and equifax FICO is 770+).
2nd is a completely unrelated business; legal entity formed in January, with just a little bit of activity thus far. No credit card/financing for it yet.
So wanted to confirm:
1. "Hard" Inquiries. Banks these days will require PGs for business ccs and most loans. So in most cases, any application for business financing is going to result in a hard personal inquiry. We can talk about the fairness of that until the cows come home, but it is not going to change that reality.
2. Utilization/Payment History For Card in Bus's name with PG. If the card is in the businesses' name, the extension of credit and actual utilization will not hit my personal credit file. I am looking at my Transunion credit report and it shows the initial inquiry from Amex but not the actual CC (or its corresponding utilization and payment history).
3. CC in Individual Name and Business's. I have a couple of credit cards with high limits (30k and 20k) in my individual name; been thinking about exploring with those banks adding the business to the cards. Don't know if that will fly but want to explore. If I am able to do that would assume the utilization and payment history would hit my personal credit file.
Does that look right?
Less important today (other than I am not carrying high balances on the bus. card at the moment, paying on time, so would like to get credit for those if I should be getting credit), but in the near future the 2nd start-up will likely be heavily leveraged, potentially with some credit card debt and just want to project the impacts on my credit.
Starting Score: Equifax FICO 694
Very helpful! What does HP and PIF mean?
Thank you! Slightly confused then by the point there - if the business card does not hit my personal utilization, how does it show up as a PIF?
Got it that is helpful.
For one of the startups anticipate a substantial amount of long-term debt; realize ccs is not an ideal solution for that, but need to plan for the possibility that a short-term solution might morph into medium-term solution for that start-up, which may require carrying a balance on a business cc for a substantial period of time . . . While pif is all I ever do on the personal side, on the business side that may not be practical.
What banks do you currently hold personal cards with $20 and $30k limits?
You could look at an Amex Business Credit Card also... The Platinum Business Cash I believe it is offers up to 12 or 15 months 0% and they probably already like you depending what you put on your charge card... but if really looking to carry balance I would look more towards the Barclay, Bank of America, Chase route.
I have the following individual cards:
- Bank of America Power Rewards VISA with a $30k max (originally a Schwab Card that got moved around first to FIA and now B of A). I am not actually sure I could get this card today (the rate is only 5.19%)
- a credit union VISA (First Tech) at $20k. Rate is 6% for another couple of weeks and then moves to 6.99%. I am actually thinking about taking a cash draw to pay down some other debt (rental 2nd mortgage) that is at a slightly higher rate as their are no fees for cash advances and has the same 6.00% rate (for 2 more weeks).
- Toyota Visa $11k (not sure on rate).
- 2 Individual Amexs (each at 15.24%)
- COSTCO (12.5k limit)
- One ($1,200 limit)
On the business side only have Amex Gold (can't easily see limit or rate, but think it is high for both).
Will check out those cards you mention - personally and for firm do not want to carry balances; but new startup will definitely need medium and long-term debt.