Does Your Business Credit Card Show on Your Personal Credit Profile? It Might!

How to Get Your Business Credit Card Off Your Personal Credit Profile

If you have a business credit card, you probably think it isn’t affecting your personal credit profile.  While ideally this would absolutely be the case, the fact it, it could be.  There are ways to keep your business debt off your personal credit report, but it isn’t something that happens automatically.  There is a very specific process that actually takes some time.

It also has to be intentional.  A business owner must be active about building business credit. It doesn’t happen passively. The idea is to set up your business in a way that it easily exists in the eyes of credit reporting agencies (CRAs) and lenders as an entity separate from yourself.  How do you do that?  After you do, how do you get accounts that will report to the CRAs before you have a business credit score?

We can answer all these questions and more.  We can walk you through the process and show you not only how to establish business credit that will not show up on your personal credit profile, but how to build it so that it is strong enough to qualify for any financing you may need.

One Business Credit Misunderstanding

One major misunderstanding when it comes to business credit is that if you have a business credit card, it isn’t on your personal credit profile.  While this can be true, if you haven’t actively built business credit and you did not apply for the credit card with your business information, it likely is not true.  The fact is, that card is a personal credit card that has a few extra perks due to its business designation.  It is not actually a credit card that is based on the merits of your business credit profile. If a business credit card is in the owner’s name, it is on the owner’s personal credit profile.

Share our foolproof business credit building checklist and tell your friends about how you’re building business credit the quick and easy way.

How to Establish Your Business as Separate from Yourself

The question then becomes how do you separate your business from yourself.  Many new small business owners operate as a sole proprietorship because it is just easier.  They simply use their own contact information as their business contact information, and business finances mingle with personal finances.

When it comes to establishing business credit however, this just will not work.  Here is what you need to do.

Get Incorporated

The first step is to incorporate.  There are three options for this.

  • C Corp– This is the most definitive separation, but it is also the most complicated and expensive. Before choosing this option, be certain there are reasons other than establishing business credit that it needs to be done.  If it isn’t necessary for some other reason, there are other, simpler, less expensive options.
  • S Corp– This option basically offers the same separation as the C Corp, but taxes are paid at the personal level, rather than requiring the business to be taxed as well, resulting in double taxation. It is also cheaper than incorporating as a C Corp.  If you aren’t required to file as a C corp, this is a good alternative.
  • LLC– forming a Limited Liability Corporation results in less liability, thus the name, and offers enough separation to serve the purpose of establishing business credit. If you are not required to be a C Corp or S Corp, this is the easiest and most cost-effective way to create the separation of business and personal credit needed.

The option you choose will depend on your specific tax and liability needs, as they each offer different levels of protection and expenses.

Get an EIN to Keep Accounts off Your Personal Credit Profile

You need to apply for an EIN. Stop using your Social Security Number as the identifying number for your business.  Your SSN is a direct link to you personally.  It is virtually guaranteed that anything connected to it credit wise will end up on your personal credit reports.

In fact, even if you follow all the other steps for establishing business credit but skip this one, accounts could end up on both reports.  You don’t want that.

The process of applying for and EIN is easy.  The IRS has an online form, and as soon as they verify all the information, you receive your number.  It typically happens almost immediately.

Don’t Forget to Get a D-U-N-S Number

Dun and Bradstreet (D&B) is the most widely used business credit reporting agency.  They issue each business on file a 9-digit D-U-N-S number.  Application is easy and free, and once you have that number, you will be even closer to establishing credit for your business separate from your own.

personal credit profile Credit Suite2

Get Shiny New Contact Information

Your business needs its own phone number and address.  This way, when you apply for credit, you can enter contact information that is separate from your own.  When information is reported to agencies, sometimes the phone number and address are used as identifying factors.  If you and your business share a number and address, that just decreases the level of separation.

Be sure you get your contact information listed in the directory under your business name.

Get a Dedicated Business Bank Account

If you don’t have one already, you need a dedicated business bank account in the business name.  Make sure all business expenses run through this account.  Not only does this help separate you from your business, but it will keep business expenses separate from personal expenses for tax purposes as well.

Business Website and Email Address

A lot of business owners do not realize how important this is.  Truly, these days if you do not have a website, you do not exist.  However, your business website needs to be professionally built and hosted on a paid service such as GoDaddy.  The email address needs to have the same URL as the website.  Free web hosting and free email services such as Gmail and Yahoo do not work well.

These things make your business look fundable to lenders.  This is the first step to building business credit.

Establish Credit Lines with Vendors

If you are a new business and just starting with vendors, look for those that will extend credit and report to the top credit agencies.  We call this the vendor credit tier.

Share our foolproof business credit building checklist and tell your friends about how you’re building business credit the quick and easy way.

If you have been around for a while and do not have credit with your existing vendors, ask for it.  If they comply, ask if they currently report to the credit agencies, or if they will.  Not all vendors do because it is not required.  Not all are willing either.  If your current vendors do not want to cooperate in this endeavor, consider switching to vendors that will.

Here are some of the starter vendors that are the easiest to get started with.

o Use Quill to order supplies you use every day, including pens, pencils, folders, printer ink, copy paper, and even cleaning supplies.

o Order shipping supplies, janitorial equipment, and more through Uline.

o Grainger offers industrial supplies as well as tools that you will need in the course of regular business.

It may be necessary to place a few initial orders with each of these before you can get net terms. There is no need to order anything you do not need however. They each sell things that business owners need in the everyday operations of a business. Once you make your on-time invoice payments and they begin reporting those payments to the credit agencies, your credit score will start to grow.

Talk to the Utility Companies

Sometimes utility companies are willing to report payments to credit agencies.  However, you almost always have to ask.  The worst they can do is refuse.  If they do, no damage is done.  If they agree, you will only establish your business credit faster.

Talk to them all, including telephone, electric, gas, and even internet.  Before you do this, be certain that all of these utilities are in your business name with your business contact information.

Topsy Turvy: Your Personal Credit Profile Still Matters for Your Business

Taking these steps will help you establish separate credit for your business.  That means your business credit cards and other business credit accounts will not show up on your personal credit profile.  However, it is virtually impossible for the reverse of this to hold true all the time.

It’s true, your personal credit accounts will not show up on your business credit report. However, your personal credit can still affect your ability to get a loan even if you are using business credit.  It doesn’t always, but it can.  Here’s how.

First, some lenders insist on checking personal credit even if you have business credit.  The thing is, if your personal credit isn’t up to par but you have strong business credit, you are more likely to get the loan anyway.  That not so great personal credit score can affect your terms and rates however.

The other way that your personal credit profile can affect your business credit is this.  Some CRAs actually use your personal credit in the calculation of your business credit score.  While not all of them do this, there is really no way to know which of the CRAs your lender will choose to use.

The moral of this story is that you cannot ignore your personal credit profile while you are building business credit.  You have to stay on top of your complete credit history.

Why Does it Matter if Business Credit Cards are on Your Personal Credit Profile?

You may be wondering why it matters.  If your personal credit can affect things anyway, wouldn’t it be easier to just have everything in one place?  The answer is a resounding no.  In the long term, not having separate business credit is a bad idea.

The thing is, even if you make all your payments on time, your personal credit cannot handle the level of spending that running a business requires.  Business credit cards that you get on your business credit have higher spending limits.  These higher limits are designed to handle the larger spending amounts necessary to run a business.

Why does that matter?  Well, when you carry balances at or near your credit limit, your debt-to-credit ratio goes up.  A high debt-to-credit ratio has a negative impact on your personal credit score. With the level of monthly spending that most businesses require regularly, it is all but impossible to keep a low debt-to-credit ratio with business accounts on your personal credit profile, even with an immaculate credit history. This can impede your ability to get personal financing for things such as houses, home renovation, automobiles, and more.

Share our foolproof business credit building checklist and tell your friends about how you’re building business credit the quick and easy way.

Are Your Business Credit Cards Affecting Your Personal Credit Profile?

How can you know if your business cards are affecting your personal credit?  Well, if you have not taken the steps necessary to separate your business credit from your personal credit, you can  bet for sure this is happening.  To know for certain, get a free copy of your personal credit report from each of the main personal credit CRAs.  These include Experian, Equifax, and Transunion.  You should be able to see them on there.

If you have strong business credit, call the credit card company and inquire about shutting down the card on your personal account and switching to a card on your business credit. If you do not yet have strong business credit, start building it now.  When you have a high enough business credit score, take the steps necessary to remove the card that is on your personal credit and open new ones using your business credit.

You Don’t Know What You Don’t Know

If you aren’t sure if this is happening to you, or if you didn’t even know it was possible, find out now.  Get copies of your personal credit profile and see what is on there.  At the same time, start building business credit if you do not have it already.  Then you can access all the funding you need to ensure your business is able to continue to grow and thrive.

 

 

The post Does Your Business Credit Card Show on Your Personal Credit Profile? It Might! appeared first on Credit Suite.

Jumpstart Creativity in Your Business –10 Brilliant Business Tips of the Week

Our research ninjas at Credit Suite smuggled out ten amazing business tips for you! Be fierce and score in business with the best tips around the web. You can use them today and see fast results. You can take that to the bank – these are foolproof! Jumpstart creativity and rev up your content engine. Plus nine more awesome tips to get your business humming all week!

The Hottest and Most Brilliant Business Tips for YOU – Jumpstart Creativity and More

Stop making stupid decisions and start powering up your business. Demolish your business nightmares and start celebrating as your business fulfills its promise.

And these brilliant business tips are all here for free! So settle in and scoop up these tantalizing goodies before your competition does!

#10. Explain it to Me!

Our first jaw-dropping tip is all about creating better explainer videos. Young Upstarts says explainer videos have their own rhythm and rhyme. They aren’t really short cinematic masterpieces. At least, they’re not meant to be.

Our favorite tip was to sell the lifestyle, versus the features. What an interesting premise. The concept behind this is to show how much more convenient, easier, happier, safer, whatever, the prospect’s life will be with your product or service.

For explainer videos, it works well to show the difference between the prospect’s current life and the improvements which are inherent in using your product or service. Talk about how to jumpstart creativity!

Sound, Visual, and Captions

It should probably go without saying that you need to be spot on with all of these. Why captions? Because a good half of your audience is likely to be watching without sound, as they might be in a crowded place without earbuds. Or they might prefer to multitask a bit and listen to a conversation or music.

Or they could be hard of hearing. If your buyer persona is over the age of 40 or so, you should consider this a very real possibility. Beyond that, caption files are the kinds of files Google will crawl – so add them!

And while visuals are certainly vital, please be sure the sound is great. Yes, I just got through telling you how many people aren’t listening to your explainer video. And that’s still true. But at the same time, for the other half, who are listening, give them a good listening experience.

Seriously. People will be a lot more willing to forgive less than stellar visuals than poor sound quality.

#9. We Gotta Hand it to Ya

The next awesome tip is about reliably handing off sales to service. Sales Hacker notes there can be a documented, formal process to this. And a documented process makes a lot of sense. After all, it can be a part of onboarding new employees in either sales or service.

A formal process also gives your customers a sense of what to expect. A great tip is to conduct an introductory phone call.

“It’s been great working with you; now Lisa will be happy to handle your future service needs. Lisa, this is our customer, Steve.”

It sounds kind of like common courtesy, doesn’t it? The beauty of this kind of hand off is it’s an occasion to set expectations. In our example, Lisa can tell Steve the hours she works, or how long it normally takes to deliver replacement parts or whatever. Steve now knows what to expect. And Lisa doesn’t have to contend with Steve calling when she’s off work, or complaining about the speed of delivery of replacement parts.

Pretty neat, huh?

Jumpstart Creativity Credit Suite

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Jumpstart creativity today and watch your productivity soar!

#8. Sell With Superlative Skills

Our following life-changing tip concerns the best sales skills. Mail Shake lays it all out for us. For most of us, it’s pretty obvious that a sales person needs to have the gift of gab.

But there are a number of other talents which will juice your sales team’s success percentages.

Curiosity Didn’t Kill the Sale

So, what does curiosity have to do with sales? Quite a bit!

Consider the curious person who learns everything they can about their prospect. A prospect will be a lot happier if they feel like you know them well. Can you anticipate their need, and fill it? Or are you just generally selling in the same way to everyone?

Curiosity also matters in terms of finding better solutions.

No lie, curiosity and laziness drive many inventions. Of course you shouldn’t be lazy! But curiosity is vital.

#7. Don’t Spam, Plus More Email Marketing Mistakes to Avoid

For our next sensational tip, we looked at avoiding email marketing mistakes. Business Knowhow says that your mission is to stay out of prospects’ and customers’ spam folders. Heck, yeah.

Vagueness is Kinda Bad

Get to the point in your from lines. Don’t be overly cute. Name your business and don’t hide. It’s a pretty surefire way to get your emails binned if the reader has no idea who you are.

And to go along with that, make sure your calls to action are clear. Vague calls to action do nothing but confuse people. Should they click? Call? Download? Fill out a form? And, more importantly, what will they get if they perform the correct task? It’s great to jumpstart creativity in this area. Just make sure people know what you’re talking about.

Measure, For the Love of All Things Holy

We’ve beaten this drum before, and it bears repeating. If you don’t measure your efforts, then you have no idea if they’re working. And if you have no clue about success, then why do this or that (or anything, for that matter)?

Now is not the time to jumpstart creativity. Rather, you need to measure what most any company measures. These are verifiable, helpful metrics such as open rates.

Inconsistency Stinks!

Make it so your customers and prospects know what to expect, more or less. This is another area where you don’t want to jumpstart creativity.

Certainly, you need to be creative and interesting enough. But at the same time, it’s the ultimate WYSIWYG. It has to be. Your audience needs to know your messages won’t be NSFW, for example. And they need to know the message will be about widgets, and they’ll be conversational, etc. If you want to say something different (let’s say your business is supporting a charity and you want to get the word out), you’ll need to explain that early in the email. Don’t just spring it on your readers.

#6. Look Past American Borders for Marketing

This tip is so cool, and it works! Startup Professionals tells us all about global marketing challenges.

For purely online companies, it’s important to consider how marketing works in everywhere from the Philippines to Bangladesh to Chile to France to ….

The article provides some great tips and ideas for what you might not have thought of. For example, consider protecting intellectual property. There really isn’t a universal global copyright out there, so you’d need to apply everywhere. And that’s expensive! So consider protecting your intellectual property selectively.

After all, if you don’t have much of a market in New Zealand (if any), then applying for copyright protection there is going to be a waste of money, at least to start.

Talk the Talk

And one more thing – translate your website! Yes, lots of people speak English these days, and that’s terrific. But it’s easier for nearly anyone to read and write in their native tongue. And here’s a pro tip – get a person to do this. While it may be easier and faster (and possibly cheaper) to get this done via machine, don’t.

Just, don’t.

After all, consider the Spanish word, guagua. In Cuba and Puerto Rico, it means bus. But in Argentina, Chile, Colombia, and Peru, it means bus.

Taking a guagua could have a rather different meaning, depending on where you are and what you mean, eh?

#5. Get a Jolt of Mental Caffeine and Jumpstart Creativity

Grab this mind-blowing tip while it’s hot!

Jumpstart creativity today!

Word Stream says a blank page is one of the most daunting things out there for a writer of any sort – and this spoke to us 100%. God, yes.

So, they had a bunch of awesome ideas on how to get something, anything on the page so it doesn’t look like such a void when you sit down to write.

But they didn’t include two things we do – use templates and listen to music in order to speed up typing and really jumpstart creativity. That’s okay; there are still a bunch of great concepts here.

Get creative today Credit SuiteWrite a (Lousy) First Draft

This, oh boy howdy, this. This dovetails well with another tip, which is to free write and not self-edit. But what do they mean by a lousy (er, they used a far earthier adjective here. But this is a family show, so we’re going more PG) first draft?

It’s exactly like in fiction writing, truth be told.

Writing a lousy first draft means you don’t self-edit. You don’t worry about flow, grammar, etc. You just write. This means you’ll need to edit more later. But at least you’re getting started! And that’s a lot easier than going completely from scratch.

You can’t edit a blank piece of paper.

Jumpstart Creativity Credit Suite

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Jumpstart creativity today and watch your productivity soar!

#4. Strategize Your Strategy

Check out this spectacular tip, all about executing your strategy better. The Harvard Business Review notes that these tips can work for pretty much any situation. Hence you can use these for your industry and even in your personal life.

Seriously!

Be Specific and Imperative

Vagueness still stinks (see tip #7). A strategy to just get better isn’t much of a strategy. A strategy to get better by 5% in 2 months is a lot easier to work on. It’s easier to measure, too.

The idea of making strategies imperative also puts a lasso around a task. Hence you want to tell people to ‘improve sales’ versus ‘start improving sales’. The former has a specific focus, particularly if you pair it with numbers. But the latter just feels like a continuing process. And while many tasks go on and on, that much should be understood.

The imperative to improve sales by 5% has an end. It should be a no-brainer to see the strategy in the future might be something like ‘improve sales by 10%’.

It may feel the same, but it’s not. You’ve given people a goal to strive for. This way, they know when they’ve won.

#3. Get Your Product or Service Front and Center So Your Customers Fall in Love With It

It’s not your imagination: this winning tip can help you better and more easily cultivate customer buy-in. Succeed As Your Own Boss tells us there are keys to cultivating repeat buyers.

Keep in mind, one of these tips is for products only (to use eye-catching packaging), but the others will work for either products or services.

Listen and Act

Being responsive to feedback will trigger what is essentially love and brand loyalty. But why? One reason is that the customer or prospect will see you care about what they think.

So here’s a fer-instance.

Let’s say your product is marketed to people aged 50 and up. If the print is too small, you’ll probably hear about that. So, what happens if you tell your customers and prospects to get lost and get a magnifying glass?

They’ll get lost. Permanently. And they will be more than happy to do business with a company which listens and changes the size of the font on the package as soon as possible. And if that’s not possible for the time being, that company should be telling its customer base – bigger print is coming, thank you for your patience.

So, listen to customer and prospect complaints. They just might jumpstart creativity to find a solution.

#2. Customer Service Will Save Your Business

Our second to last unbeatable tip can give you a new perspective on customer service. G2 reveals all about how excellent customer service should be every business’s secret weapon.

How and why do customers renew and reup? Service can often have a lot to do with it.

Accentuate the Positive Messaging

We truly adored this tip. Consider the difference in tone between saying, “I can’t do that.” Versus “I can do that in two weeks.”

They might, on balance, mean the exact same thing. But the latter pre-frames everything positively and opens up the relationship with the customer. There’s something to look forward to. But the former feels like a door is slamming shut.

Not a good look.

#1. Be Good to Your Employees, and They’ll Be Good to You

We saved the best for last. For our favorite remarkable tip, we focused on rewarding and engaging employees. Effortless HR says **

So which one of our brilliant business tips was your favorite? And which one will you be implementing now?

Jumpstart Creativity Credit Suite

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Jumpstart creativity today and watch your productivity soar!

The post Jumpstart Creativity in Your Business –10 Brilliant Business Tips of the Week appeared first on Credit Suite.

Being familiar with Your Business Credit Card

Being familiar with Your Business Credit Card

Entrepreneur are ending up being significantly depending on company bank card, albeit not rather to the level that specific customers count on their individual charge card. Due to the fact that it offers immediate credit scores when required, this dependancy on service credit history cards is generally due to its efficiency in negotiating and also. Understanding the big possibility of the small company market, a growing number of charge card companies have actually created service bank card plans particularly made to fulfill the demands of local business owner.

Company credit score cards will certainly end up being an important device for carrying out service going right into the future if the credit report card business are appropriate in their forecasts. Entrepreneur might also acquaint themselves with the fundamental advantages of organisation bank card, to aid them in picking a plan ideal matched to their requirements.

When cash money is reduced, money circulation
When an immediate expenditure requires to be sustained and also the cash money circulation is briefly damaged, service credit report cards supply a monetary life line. It is likewise not unusual for business owners to utilize organisation bank card in aiding them obtain a service off the ground. Normally a completely persuading and also strong organisation strategy will certainly be needed with which to encourage a service bank card business to provide a service bank card for this function.

Gain as you invest
Service bank card with numerous benefit alternatives are preferred. Lots of entrepreneur value the cost savings that these organisation bank card provide in regards to airline company tickets, resort keeps, automobile services, fuel acquisitions, workplace materials, printing, messenger solutions, as well as much more. There are variants to these benefit choices, however one can contrast the various organisation bank card attributes and also obtain business charge card that ideal matches business’ demands.

When you require it, credit score
Business that provide service credit rating cards recognize that services require even more financing than specific customers do. Some company credit history card companies also permit service proprietors to cover over-limits on their monitoring accounts by ways of a money advancement attracted versus the readily available credit rating on their organisation credit rating cards.

Accessibility to company sources
If you’ve ever before gone to the internet site of service charge card companies, specifically those coming from the huge financial institutions, you will certainly have observed that they use professional support to local business. This consists of details on marketing research techniques, organisation strategy prep work, capital administration etc. These beneficial sources are offered to owners of their company charge card for free.

A company debt card has actually ended up being an important economic tool, in every method. In enhancement to the straight advantages on deal, companies of service credit report cards likewise give organisation proprietors with in-depth, itemized declarations at normal periods. Offered that the company credit history card, like any type of various other economic tool, is dealt with in an observant way, it will certainly improve the capacity of any kind of organisation to prosper.

Organisation proprietors are coming to be progressively reliant on company credit report cards, albeit not rather to the degree that specific customers count on their individual credit report cards. Recognizing the big possibility of the little company market, even more as well as extra credit report card companies have actually come up with service credit report card bundles especially developed to satisfy the requirements of company proprietors.

Normally a completely persuading as well as strong company strategy will certainly be called for with which to encourage a company debt card business to release a service credit report card for this function.

There are variants to these benefit choices, yet one can contrast the various company credit report card functions and also use for the service credit rating card that ideal fits the organisation’ demands.

Some service credit score card companies also permit organisation proprietors to cover over-limits on their monitoring accounts by methods of a cash money development attracted versus the readily available credit report on their service credit scores cards.

New comment by hellofreshjobs in "Ask HN: Who is hiring? (October 2019)"

HelloFresh is recruiting a Senior Data Scientist (Forecasting team) in Berlin ONSITE: https://www.hellofresh.com/careers/listings/1689313?country=…

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New comment by hellofreshjobs in "Ask HN: Who is hiring? (October 2019)"

HelloFresh is recruiting a Senior Data Scientist (Forecasting team) in Berlin ONSITE:
https://www.hellofresh.com/careers/listings/1689313?country=…

New comment by deanalevitt in "Ask HN: Who is hiring? (October 2019)"

ThymeBase has two remote developer positions open with a preference for Africa and European timezones. https://remoteok.io/remote-jobs/75614-remote-full-stack-deve…

New comment by ph2082 in "Ask HN: Who wants to be hired? (October 2019)"

Location: India Remote: Yes Willing to relocate: Not Now Technologies: 10+ years in Java/J2EE technologies. Spring Boot, MySQL, Tomcat, AWS, Clojure, Scala, Python, Saas. Résumé/CV: https://drive.google.com/file/d/1ZN5tO3Z-uZ_gSikM3sJhS_miwwj…

Well-off Affiliate Will Change Your Life

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Well-off Affiliate Will Change Your Life

Rich Affiliate Will Change Your Life

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Recently Funded… $30,000 in 24 Hours

One of our North Carolina OBGYN clients just obtained $30,000 in funding in 24 hours!

Their business needed expansion capital to make a big move, but there were multiple challenges with credit scores and an already over-extended credit line.

Using their consistent cash flow we were able to secure a $30,000 advance in do it in record time, in just one day… helping them get the money they needed for their new acquisition.

Click Here to see how much funding you can get for your business.

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