@Anonymous wrote:I'm not sure which would be better for me. I am going to be a sole proprietor, but wont have any income verifications for the first year. So maybe personal? I know discover doesnt let you apply if it's your first year in business.
I would recommend going with a business card if the expenses are for your business, I don't personally have any experience with business cards but I can tell you that if you are starting a business you should incorporate and if you put the business expenses on a personal card you will lose the liability protections. I am not sure what kind of business you are trying to start but mixing personal and business expenses sounds too messy I wouldn't suggest going that route. You want the records to be separate. The business card will likely require a personal guarentee but the business accounts won't show up on your credit report (I am 99% sure of this but someone can correct me if I am wrong).
I would advise asking in the business credit forum, I read in there a bit to learn and there is some good advice. Some folks seem to go with the business loans option or they open store accounts where they can to start building business credit but the other forum is probably the best place to discuss.
@Anonymous wrote:I plan on starting a business next year. I currently have a 5,000 and 2,500 dollar credit limit with discover, and 700 and 550 with capital one. I need a way to get started. I was thinking credit cards were the way to go for a while. I likely wont get approved for a loan since my credit score is around 670.
What do you guys think? Which companies would give me the highest limit? Thanks in advance.
It's doubtful that you'll be able to get a business credit card when just starting out. But if you can, that would be great.
One type of credit you might be able to get at the outset is "net 30" financing from a vendor. If you will have one or more suppliers, ask them to give you a "net 30" account, which means they bill you and you have to pay within 30 days. That helps your business credit.
If you use your personal credit cards, be sure to keep careful records that these were your capital investments in the company. Talk to a bookkeeper or accountant at the beginning, so that you don't create a difficult situation later for tax and bookkeeping purposes.
