Hello all Couple of questions related to business credit... I have a small corporation, just started it about three months ago to handle the consulting work I'm planning to do on the side. So far, no business yet, didn't have the time for it... Anyway, it happens that I've just received an invitation for a business credit card from Bank One. It's a platinum card, up to $35k, subject of approval, of course. Now, my company doesn't really need a card, but it would be a nice thing to have. Now I'm wondering how things work with business credit... for example, do they keep a separate credit profile for the company as an entity? Do they use the same three bureaus? When processing the application, they will look at my personal credit history or just at the company's history? If the account is in default, this will hurt my personal credit? Too many questions I guess, but if anybody has any kind of experience with this sort of stuff, i'd appreciate your answer... And the big question is: do I go for it or not... I have a feeling that it's not such a good idea... Regards Sorin
RE: Questions about business c Dun & Bradstreet is the reporting agency most major banks use for business credit. It's not a bad idea to go for the card if you have strong personal credit. You might want to ask the issuing bank if they report the credit line amount to your personal credit. Some banks do and some don't so the only way to know is to ask. They will first pull your Corp's Dun's number and then your personal credit. First thing you should do is apply for a Target Store Corporate card, which is very easy to get and then try Staples or Office Max corporate cards. You can call D&B to activate an account with them just by calling them and asking about your own company. Be careful because D&B is very powerful just like Experian is to our personal files. The info you share with D&B will become your record. It's best to have an office address, listed in 411 business phone number and all the other normal business tools. Just like personal credit, itâ??s a good idea to start building corporate credit now before you need it. Also once your corporation becomes two years old it becomes much easier to obtain corporate credit. Good Luck! Tyson
RE: One more thing Forgot to answer yes to the question about being responsible for any loans or credit lines. If your corporation is new and does not have a very strong history then you will have to guarantee the loan or credit card and thatâ??s why they check your personal credit when you apply for corporate credit. If the corp fails to pay then you will be held accountable and your personal credit will reflect this.
