Applying for Business Credit & my Fico Score

MM1234 · ‎03-18-2007

As a small biz owner I have a Corp. FED Tax ID # but am thinking of applying for small business line of credit. Will this hurt my personal score if they pull my report or issue me credit for the business? They request my Business/Tax ID EIN # but also request my personal SSN on the application.

Also - if they simply pull my Credit Report to review it - will that hurt my score any?

I currently have a Business credit card with a small balance but this info does not show up on my personal credit report so I didn't know if the Business Line of Credit will.

Any help or tips to look out for is truly appreciated.

Sincerely,

MM

Barry · ‎03-20-2007

MM1234,

It's not unusual that a prospective business lender would look at your personal credit report and FICO score and, if so, it will create a 'hard' inquiry, meaning that your FICO score could be affected. Then when the account is opened, it may or may not affect your personal credit depending on whether the account is reported to the credit bureaus as a personal account. You may want to ask the lender about the inquiry and how/if the account will be reported to the credit bureaus.

Anonymous · ‎03-21-2007

Most creditors ask for something called a personal guarantee when you open small business accounts depending on the annual income of the business and structure. Some report as personal credit some as business. Before you jump in with both feet make sure to clarify whether it is to be reported as business or personal credit. Some dont even ask for EIN which is a sure tip off that you're just applying for a personal card with your business name. If you are trying to get business credit built it is important it reports as such. Cap One doesn't Advanta Business does

Anonymous · ‎02-11-2009

does anyone know if the Citibusiness with ThankYou network rewards card reports to your personal credit report?

Does it report to Dun & Bradstreet? I saw on the Experian website they have special business credit reports, and the other credit agencies probably have them too.

Does the Citibusiness card report to any of these?

Is a business credit report started somewhere when you get your first business card?

This would be for a sole proprietorship consulting business where I am the only employee, and I have no EIN (only my own SS#)...

Message Edited by urgent_help_needed on 02-11-2009 02:47 PM

2wheel · ‎02-11-2009

I think they report to transunion and experian.. Duns I dont know about unless it asked for your duns number.

I have a 45k cl with cu But I didnt pg it. They looked @ financial records and took copy of paydex to them for it and it is hooked up to my accounts receivable Dont have any Business credit cards that require pg I dont want that burden on me if my business goes south. Depends on your business I just keep my tradelines paid and get better CL thru my vendors

Message Edited by 2wheel on 02-11-2009 05:46 PM

2wheel

Anonymous · ‎02-11-2009

thanks for the info 2wheel. when you say the Citibusiness card reports to TU and EX, do you mean TU/EX personal credit reports or TU/EX business credit reports?

From the websites it looks like the CRAs offer business credit reports to people who want to check out a business.

I'm fine making a PG on my business card. However I'm hoping the card doesn't report to any type of credit report at all.

Message Edited by urgent_help_needed on 02-11-2009 06:51 PM

2wheel · ‎02-28-2009

no personal just tu and ex business files only do you have a paxdex from dnb?

2wheel

Anonymous · ‎02-28-2009

I don't have a paydex #. I am a sole proprietor. I have high FICO scores (750+) but fairly thin credit file. I'm wondering

if I will get approved for Citibusiness, I want to move a 10K balance from another bank to Citibusiness card.