Tag: credit

Starting Business Credit – Why Your Business Address Matters

Did you know that your business address matters when it comes to starting business credit?  Your address matters. And there are other things that can make a difference. Here’s how you can start off on the right foot when it comes to business credit.

Your Business Address, and  5 Other Things You Didn’t Know Make a Difference When Starting Business Credit

When you first start a business, you may not be thinking about anything other than how to pay for it  and how to get customers. Many businesses start small from home. They operate in either an extremely intimate area, or they work mostly online.  Social media-based businesses have exploded in recent years. 

That being the case, new business owners often simply use their home address as their business address.  It’s the easiest thing to do, and makes sense after all. I mean, if you are running your business out of your house, why wouldn’t you use your home address? 

What frustrates you the most about funding your business? Check out how our free guide can help. 

Looking into the future however, you are going to need to build business credit.  For that, your business needs its own address, separate from your personal address. 

Why Is Starting Business Credit Important? 

If you have great personal credit, business credit probably never even crossed your mind.  You just figure you can get all the funding you need based on the merits of your personal credit score. If your personal score isn’t the best, you may have explored other options and realize that business credit is a thing. 

Here is what you may not know, either way.  You cannot just apply for credit in your business name and assume that any credit you get is business credit.  Unless you set up your business in a very specific way and follow a very intentional process, those accounts are going to report to your personal credit.  This is true even if you apply with your business name. 

Why does this matter?  There are a few reasons actually.  First, personal credit simply cannot handle the spending necessary to run a business.  You will either exceed your limits continually or consistently hover near them. Even if you pay off your cards each month, staying near limits can affect your score negatively.  It results in a high debt-to-credit ratio, and that will cause your personal score to drop.

Conversely, cards obtained on the merits of your business credit will usually have higher limits.  That means more spending power. Not only that, but if there is and issue with your business debt, your personal credit will be protected because those accounts will not be on your personal credit report.

How to Get a Business Address

Now that you know why you need business credit, you need to know how to get it.  Like I said, there is more to it than just applying for credit using your business name.  Your business has to be set up a certain way. You also have to be intentional about getting accounts that report to business credit rather than personal credit.

For your business to be set up in a way that is conducive to building business credit, it needs to be easily recognizable as a fundable entity separate from the owner.  One of the first steps toward accomplishing that is for the business to have an address different than the owner’s personal address.

The question that most business owners ask about this is, how do you get a business address that isn’t your home address if your business is in your house?  Well, the obvious first option is to get a P.O. Box. That works for some things, but some lenders want to see a physical address. 

Of course, if you are running a business online or from your home, you are wondering how you can do that.  The answer is a virtual office.

What frustrates you the most about funding your business? Check out how our free guide can help. 

What is a Virtual Office and How Does it Work?

According to Investopedia, “A virtual office gives businesses a physical address and office-related services without the overhead of a long lease and administrative staff. With a virtual office, employees can work from anywhere but still have things like a mailing address, phone answering services, meeting rooms, and videoconferencing.”  

Basically, virtual offices operate as a single unit.  Sometimes there is a physical location that has meeting rooms and such available as needed. However, more often it is operated solely online with a physical mailing address and other services you can use, as mentioned above. These services are ideal for those that need a physical address but do not need an actual office. 

3 Stellar Options for Virtual Offices

If You think a virtual office space is best for your business, here are three top options to help get you started. 

Davinci

Davinci offers a prime business address with options to hire a receptionist, book meeting space, and live chat.  Prices are variable. Call for a quote or go here to learn more. 

Alliance Virtual Offices

Alliance offers a physical address, office space, mail services, and phone answering services starting at $125.  Go here to learn more. 

Regus

In addition to virtual office services, Regus has options for meeting rooms and more.  Find out more here. 

What Else Matters: 5 Other Things You Didn’t Know Make a different When Starting Business Credit

Separating your business from yourself for the purpose of starting business credit takes more than having a separate business address. Here are some other steps that you must take to make your business appear fundable on its own to lenders. 

Startup Biz Credit Suite

You Need a Business Phone Number Before Starting Business Credit

This is for pretty much the same reason that you need a business address that is different from your own.  Your address and phone number are both identifying factors that point back to your personal credit report. If you associate them with your business, you run the risk of business accounts reporting on personal credit. 

Your business phone number should be toll-free, and it needs to be listed in the business directories.  You can handle this at: http://www.listyourself.net/ListYourself/

You Need a Professional Business Website Before Starting Business Credit

Think about it.  In today’s world, if you aren’t online do you really even exist?  The first place anyone looks for anything is online. Having a business website is a must.  You can’t just throw something together though. It is essential that the website be user friendly and well put together.  It is almost always worth it to pay a professional to handle this. Oh, and don’t use a free hosting service. That does not look professional.  Pay for hosting through a service like GoDaddy.

You Need a Dedicated Business Email Address Before Starting Business Credit 

This goes along with the other separate business contact information.  Don’t use your personal email address as your business email. Also, make sure your business email has the same URL as your website.  A free email service such as Yahoo or Gmail will not serve you as well. 

Your Business Needs to Formally Incorporate Before Building Business Credit

If you operate as a sole proprietor or a partnership, there will never be enough separation between you and your business to build separate business credit.  You need to formally incorporate as either a corporation, an S-corp, or an LLC. Here is a little more information about each of these options.

Corporation

 This is the most expensive option, but it also offers the most protection from liability. There is a double taxation caveat with this option that is a turn off for most. Owners pay tax at both the business level and the shareholder level. In some cases, this is the best option anyway. 

 S-Corp

 S-Corps are very similar to corporations, but double taxation isn’t an issue. There are also limits on the number of shareholders allowed among other restrictions set forth by the IRS. 

 LLC

 An LLC, or a limited liability corporation, is the least expensive option. It still offers some liability protection, and has fewer restrictions than an S-corp. 

Each of these options serves the purpose of further separating the business from the owner when you are looking to start a business credit profile. The option you choose should be the one that best suits your needs for tax purposes. 

You Need a Business Bank Account to Start Business Credit Building

Another common practice of small business owners is to use their personal bank account for business funds.  While in the beginning this seems like the best option simply because it is easy, it further mingles your personal information with your business information.  Not only that, but it makes separating business expenses from personal expenses at tax time very hard. 

You need a separate business account.  When it comes to starting business credit, this helps in two ways.  First, it helps to separate the business from the owner. Also, so lenders want to see a certain balance in a business bank account before approving credit.  

Other Things You Need to Know Before Starting Business Credit

In addition to the things mentioned above, there are a few other steps you need to take to set up your business for starting business credit. 

The EIN Wins in the Battle of EIN vs. SSN When Starting Business Credit

And EIN is the business equivalent of a social security number. If you use your SSN to apply for credit for your business, your personal credit will get involved. By using a unique identification number specifically for the business, you ensure that your business is separate from your SSN. You can get an EIN for free here. 

You Have to Have a D-U-N-S Number to Have Business Credit

Here’s why.  Dun & Bradstreet is the largest and most commonly used business credit reporting agency.  If you do no have a D-U-N-S number, you cannot have a business credit file with them. You definitely need a business credit profile with D & B.

Choose Creditors that Work with the SBFE

The SBFE is a not-for-profit entity that gathers data on small businesses from its members. The data is then used to compile comprehensive credit information. Lenders that are SBFE members have access to this information.  They use this information to make credit decisions.

The Small Business Finance Exchange does not lend money. It also does not create or distribute credit reports. What is does do is collect information from lender members on their borrowers.  That information is then passed to D&B and Equifax. This means if you are doing business with SBFE members, you know your credit information is being reported, at least to those lenders that are members of the SBFE. Find out more about the SBFE here. 

What frustrates you the most about funding your business? Check out how our free guide can help. 

Other Ways to Get Accounts Reporting To Your Business Credit Report

Once you have your business set up properly, you can start to build business credit.  If you do not already have strong business credit, you will have to start at the bottom credit tier, known as the vendor credit tier.  These are starter vendors that will offer net terms on invoices without checking your credit. Then they will report your payments to the credit reporting agencies.   However, they will often want to see an EIN, business bank account, or a listing in the business directories along with a certain amount of time in business or annual revenue.  This is just one reason why setting up your business properly is so important. 

After you get a few of these accounts reporting, you can apply for credit in the next tier, which is the retail credit tier.  These are cards that you can only use in the stores that issue them, like a Best Buy card or an Office Depot card.  

Once you have several of these accounts reporting positive payment history, you can apply for cards in the fleet credit tier.  Those are cards from companies like Shell or Fuelman that can only be used for fuel and auto repair and maintenance.  

Get enough cards from the fleet credit tier, and you can move on up to the cash credit tier.  These are the cards that do not have limits on where you can use them or what types of expenses you can use them to pay.  This is the top tier, and once you hit it you will see your business credit score start to grow like a snowball rolling downhill.  That is, of course, if you handle your credit responsibly.

Not Having a Business Address can Kill Your Chances of Starting Business Credit 

There is so much more to getting business credit than having a separate business address.  However, if you have everything you need and you do not have a business address, that lack could definitely throw a kink in the process. Remember, you don’t have to have a separate location, just a separate address. Then make sure everything else is set up to separate your business from yourself.  After that, you can start building strong business credit. The funding you need to run and grow your business will be right there when you need it.  

 

The post Starting Business Credit – Why Your Business Address Matters appeared first on Credit Suite.

Mapping Out the Steps to Building Better Credit

Traveling isn’t hard right? I mean, you just jump in your automobile of choice and hit the road.  It’s a whole lot easier however, if you map out your trip. The same is true of building better credit.  It isn’t hard, but it is easier if you map out the steps you need to take first .

If you are going on a trip, you map out your route, right? You plan your stops along the way.  You research potential roadblocks, and you estimate the time you will arrive at your destination.  The same things need to happen when working on building better credit. 

You Can Be Successful at Building Better Credit; You Just Have to Know the Steps

Before you can map out your route, you have to know where you are and where you are going.  Sometimes, especially when flying, the best route is from an airport other than the one closest to you.  You have to be sure you start from the right spot. That is the first step in building better credit for your business as well. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

Building Better Credit: The Starting Point

Of course, the best place to start is from the beginning.  This isn’t always possible however. Sometimes, you have to backtrack.  Take stock of your surroundings and determine where you are, versus where you need to be to get the best start. 

That sounds complicated, but it isn’t really.  Fundability is key. If your business is already fundable, you are set.  If not, then you have a little extra work to do, but you can do it. We’ll show you how.  The first thing to do is take stock and ensure your business is fundable.  

What is Fundability? 

This step is much easier to take if you understand exactly what fundability is. Fundability is, for our purposes, how desirable an entity is for funding.  When we want to talk about building business credit, we mean funding from creditors. Some things that make you appear fundable you can control. Somethings you cannot control.  For example, you can control whether your business has its own separate contact information. However, you cannot control the length of time you have been in business. You have to work with what you can control.

Building Better Credit: Checklist for Fundability

Okay, so the first step in mapping out the steps to building business credit is to check the fundability of your business.  This includes more than you may think. Of course, it is related to the financial standing of your business, like whether or not you can pay back debt.  However, many businesses are turned down for business credit not because they cannot repay the debt, but because of fraud concerns.  

Making sure your business is set up as a separate, fundable entity that is separate from the owner will not only help with this, but it will also ensure that business credit accounts are reported properly. This too is a big part of building business credit.   So, let’s get to it. Here is your business fundability checklist. 

Business Fundability Checklist

This is like tuning up your car before a trip.  You need to work down the list to ensure everything is in working order. The first things to check off the list are related to how your business is set up: 

  • Separate address and phone number from the owner. 
  • EIN
  • Formally incorporated as an LLC, S-corp, or corporation
  • Separate business bank account

If you set your business up in this way when you first opened, you’re good.  If not, you may need to backtrack to get things how they need to be.  

The next steps have to do with the information that is out there on your business both online and offline. 

  • Make certain all licenses, insurance, public records, and anything else related to your business are recorded with the proper information. This includes the business phone number and address as well as the EIN.  Everything needs to be in the business name, and all contact information has to be in the business 411-directory. 
  • Have a professional website.  Lenders may or may not research your business before approving a loan, but if they do, having a poorly put together website or no website at all will not bode well for your chances. 
  • Make sure you have a dedicated business email address that has the same URL as your website.  
  • Get a D-U-N-S number.  If you do not have one, you will not have a credit profile with Dun &Bradstreet. Since they are the largest and most commonly used business credit reporting agency, you need to have a profile with them. That means you must have the number. 

Where Do You Stand? 

At this point you see you are either in good shape, or you have some work to do.  The next step, if you need to get yourself in a position more useful for building business credit, is to do whatever you need to do to take care of those items listed above.  Once you are good there, move on to the rest of the checklist. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

Building Better Credit: Fundability Checklist Part 2

Evaluate the following and see where you stand. 

Make Sure You are Turning a Profit, or at Least Have a Plan to Do So

Lenders aren’t in the business of giving handouts. Rather, they need to know you can pay back the funds they lend you. Thus, if you are bleeding funds, you are going to have a hard time getting approval.

How do you turn it around? Do some financial triage. Look for ways to cut expenses.  Do you need to close a location, cut some hours, or explore other options? Maybe leaning harder on your clients with unpaid invoices would help.

Have a Plan for Borrowed Funds 

Lenders will want to see that you have a clear strategy for how you intend to use the funds they lend you.  First of all, they want you to demonstrate you will be responsible with their money. In addition, they also want to know how you will use the money they give you to make more money. 

Why is this important to building better credit?  You need accounts reporting to the business CRAs. To do this, you will have to use vendor and retail credit.  They will not ask how you intend to use the funds, but you need to have a clear idea of how you are using the funds to build your business other than for building credit. 

Here’s what I mean.  You will need to get a business credit card that will report to the business CRAs.  You will need to charge things on that card. What you do not want to do is charge things on that card that you do not need or will not benefit your business at all. 

Check Your Growth Strategy

If you do not have a plan for success, you will not appear fundable to lenders.  They’ll want to see that you have a clear strategy for taking your business all the way.  

Building Better Credit: Mapping the Route

Okay, so you’re all tuned up and ready to hit the road.  Now you need to check your route. It can be tempting to take the most direct route, but often that is not the best route.  When building credit, it can seem that simply using your personal credit is the best way. It’s not. You can’t just willy nilly start applying for business credit cards though either.  You’ll get denied, and that won’t do you any good. 

We know the best route, and while it doesn’t appear to be the fastest, it is.  This is because it is really the only route. The others are viciously misleading and will not take you where you want to go. 

Building Better Credit: The Vendor Credit Tier

This route to building business credit travels across what we like to call the credit tiers.  The idea is that you get accounts reporting in tiers, so that they can build on each other. You have to do it in order, because if you apply to a higher credit tier first, you will not have strong enough credit to get approval.  

The first of these tiers is the vendor credit tier. Here is why it is the best way to start building business credit.  This tier is made up of retailers that will extend net 30 terms without even checking your credit. Not only that, but they will report your payments on these invoices to the business credit reporting agencies.  This is how you get positive accounts reporting on your credit report before you actually have a credit score. Find a few to get started with here. 

As you get more and more of these accounts reporting, you credit will grow stronger and stronger. If you want to work toward building better business credit even faster, consider talking to those you already have a relationship with.  Sometimes vendors you already work with will extend credit without a credit check. You can also ask utilities, telephone companies, and your landlord to report payments you make to them. They don’t have to, but some will if you ask. 

Building Better Credit: The Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then you can move on down the road to the retail credit tier.  These companies are retailers also, but they do not extend credit so easily as those in the vendor credit tier. They include those retailers that issue credit cards that can only be used at their own stores such as Office Depot, Staples, and Lowes. 

For example, Lowes reports to D&B, Equifax, and Business Experian. They want to see a D-U-N-S and a PAYDEX score of 78 or more.  You cannot get that 78 PAYDEX without accounts first reporting to the CRAs. That’s why you have to hit the vendor credit tier first.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit. 

Building Better Credit: The Fleet Credit Tier

After 8 to 10 accounts are reporting from the retail credit tier, you can follow the route to the fleet credit tier. It includes companies like BP and Conoco that limit the expenses their cards can be used for.  Fleet credit cards can only be used for fuel and vehicle repair and maintenance cost. 

The Final Destination: The Cash Credit Tier

The final destination along the route to building better business credit is the cash credit tier.  These are those credit cards with higher limits, lower rates, and nice rewards that do not limit the place they can be used or the type of expense they can be used to pay.  If you stay on the path, you should reach this destination with no problem. 

Staying on the path means, of course, that you handle your credit responsibly and make your payments on time.  You also need to monitor your progress along the way, and make sure nothing is slowing you down.

Building Better Credit: Monitoring

Know what is happening with your credit. Make sure it is being reported and attend to any mistakes as soon as possible. We can help you monitor business credit at Experian and D&B for only $24/month. Go to www.creditsuite.com/monitoring to find out more. You can also monitor with the CRAs directly, but it will cost considerably more.  

You are looking for a few things when monitoring your business credit.  First, you want to see that each of your accounts are reporting payments.  If they aren’t, contact them to find out why. Next, you want to make sure all of the information is correct.  If you see a mistake, send a letter to the reporting agency in writing, along with copies of backup documentation. 

Lastly, you need to see how many accounts are reporting so that you will know when it is time to start applying for cards in the next credit tier. This will save you a lot of time, because you will not be applying for cards for which you cannot yet get approval. 

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The Path to Building Better Credit is Wide Open if You Know Which Direction to Go

Building better credit is possible if you know the steps.  Once you make sure your business is set up properly to begin building business credit, you have the whole road open to you.  Along the way, as you are working, you can take any other steps necessary to ensure your business is fundable. When the time comes to apply for loans, you will be set because you will have built the best business credit score possible for your business. 

 

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Start the New Year Off with a Bang: How to Start Business Credit in 2020

Every business needs strong business credit.  Make it a goal in this new year to learn how to start business credit, and how to keep it strong so you can grow your business into more than you ever imagined. 

Learn How to Start Business Credit, and How to Keep It Strong

The new year is full of promise.  We make resolutions, set goals, and determine to stick with it all, until  what was once a resolution becomes a habit. Then, a few weeks later in most cases, we are back to the way things were.  We are eating the same, slipping into old habits, and nothing is really any different. Sometimes though, one or two things stick.  

Learning how to start business credit really can be one of those things that sticks if you use or process and support system along the way.

In most cases, you can’t access the funding your business needs without credit.  As a business owner, you not only have to worry about your personal credit, but you also have to pay attention to the credit rating of your business.

Whether you are new to business ownership or you already run an established business, you need to know how to start business credit building.  It is vitally important to have separate credit for your business. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

How to Start Business Credit in the New Year: Establish Your Business as a Fundable Entity Separate from Yourself

To do this, you need to establish your business as separate from yourself.  Even if you have stellar how to start business credit Credit Suitepersonal credit, you don’t want it messing with your business credit.  The reverse is true as well.

If something unfortunate happens on the personal credit side, you do not want your business to suffer.  On the flip side, if your business struggles and its credit suffers, you want your personal credit protected as much as possible.  

Business credit doesn’t build on its own however.. It takes some work to set things up right. It’s not  hard, but it does take some effort. 

The first step is to make sure your business has an address and phone number that is different from what you use personally.  You can use VoIP phone services and virtual business address options to keep from having to get a whole new phone line or buy a building if you are running your business from home.  

You Have to Incorporate

Next, you have to incorporate.  There are a few options.

  • 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 starting business credit.  If it isn’t necessary for some other reason, there are other, less complicated, and less costly options. 

  • S Corp

 This option basically offers the same separation as the C Corp, but you pay taxes at the personal level.  This is in contrast to the C Corp model where you pay on both the personal level and corporate level resulting in double taxation.  It is also cheaper than incorporating as a C Corp. If it isn’t necessary 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 starting 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. 

Stop Using Your SSN to Apply for Business Credit

You may think you cannot do this.  After all, doesn’t every credit application ask for an SSN?  You need to apply for an EIN. Your SSN connects to you, personally, and it is pretty much a given that anything connected to it credit wise will end up on your personal credit reports.  

No matter what you do to separate your business, if you apply with your SSN it’s likely going to hit your personal credit report.

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

You Need a D-U-N-S Number

Dun and Bradstreet (D&B) is the largest and most commonly used business credit reporting agency (CRA).  They issue a 9-digit DUNS number to each credit file. 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. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Keep Expenses Separate

If you are using the same bank account for business and personal expenses, stop. For starting business credit, you need a separate business bank account.  Some vendors and credit cards want to see a dedicated business account with a minimum balance before approval. It will also help to have the expenses already separate come tax time.

How to Start Business Credit in the New Year: Establish Credit Lines with Vendors

There are two ways to go about this.  Typically, a combination of the two is the best bet for starting business credit quickly.  First, if you are already working with any vendors, ask them about opening a credit line. Since you already have a relationship with them, they may be more willing to do so without checking your credit.  If they agree, be sure the account is in your business name and lists your business information, not your personal information. Then, ask if they will report payments to the business credit reporting agencies. 

Either way, you will also need to start working with starter vendors.  This is a vital step in starting business credit. You cannot skip it. What are starter vendors?  These are vendors in the vendor credit tier that will offer net terms on invoices without checking credit.  Then, they will report those payments to the business CRAs. If you can get accounts with existing vendors also, you will build a strong credit score faster, but you still need to work with starter vendors. 

Sometimes utility companies are willing to report payments to credit agencies also.  You almost always have to ask though. The worst they can do is say no. If they do, you haven’t really lost anything.  If they say they will, starting business credit will only go faster. 

Talk to everyone, including telephone, electric, gas, and even internet.  Make sure they are in your company name with your company’s contact information first however. 

How to Start Business Credit in the New Year: Get Business Credit Card Accounts

Once you have your name, EIN, and separate contact information, you need to use it to apply for business credit cards.  This has to be done in order as well. The vendor credit tier is actually the bottom of 4 different credit tiers. The other three are made up of varying levels of business credit cards.  When starting business credit, after the vendor credit tier, you can step up to the retail credit tier. 

These are the cards that are issued by specific stores and can only be used at the stores that issue them.  For example, a card issued by Office Depot that can only be used for purchases from Office Depot would be in this tier.

Once you get enough cards in the retail credit tier, you can apply for cards in the fleet credit tier.  Those are the cards that can only be used for fuel and automobile maintenance and repairs. A couple of examples of companies that issue these types of cards are Fuelman and WEX.

After that comes the cash credit tier.  Those are the standard cards you can use anywhere for anything.  They typically have higher limits and lower interest rates. Once you qualify for these cards, all that is left is to keep your business credit strong.

How to Start Business Credit in the New Year: Maintain Your Business Credit

There is no point in starting business credit if you are not going to keep it going strong.  You have to make your payments on time and handle it responsibly. Planning plays a big role in this.  Do not overspend, and try not to use credit that you cannot pay back in a timely manner. You don’t have to pay it off all at once.  You need to make payments to build credit anyway, but be sure you can make the payments.

In addition to handling credit responsibly, you need to monitor your credit reports.  Even if you are just beginning to establish business credit, go ahead and get a copy of your business credit report. There may not be anything on there, but you need to know when changes are made.  This original report will give you a baseline.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

We can help you monitor your business credit for a fraction of what it costs with the credit reporting agencies.  Go here to find out more. 

What to do If you Find a Problem

Each CRA has a different process for dealing with problems on your report.  You will have to find out from each one what their process is for reporting mistakes.  However, the standard is that you mark the mistake on the report and send them a copy. Also, provide the correct information along with any back up documentation.  Documentation may include proof of payment such as receipts, copies of bank statements, proof of change of address, and more. Send it all certified mail, and always send copies of documentation, not originals.

Remember mistakes can include things other than payment information.  Make certain you clear off anything that should be on your personal credit report, and vice versa.  Keep an eye on information that may need to be updated as well, such as phone number and address.

Is it Too Late to Worry About How to Start Business Credit?

The short answer is, nope.  While the process of separating your business from yourself as the owner is definitely easiest handled in the original set up process, it can be done at any time.  If you are already up and running it will take you some extra time and expense to change any marking materials and directories that already list your personal contact information.  It can also take some time to go through the incorporation process. It’s worth it though.

How to Start Business Credit: A Word About Online Presence

While having an online presence doesn’t really affect your business credit score, a poor online presence, these days isn’t very conducive to success.  In fact, so many people head to the internet first these days, if you don’t have a website you might as well not even exist. The thing is, you need to have a professional website.  You don’t want something that is just thrown together. 

This isn’t just for your potential customers, but also for potential lenders.  You never know what type of research a lender may do other than pulling a credit report.  If they see a poorly executed website, it will look unprofessional. That will not bode well for your approval chances.  Be sure you have a business email with the same URL as the website also. You shouldn’t use your personal email address any more than your personal phone or mailing address. 

How to Start Business Credit in the New Year: Set Your Goals and Stick to Them

The best way to stick with it and keep working toward your goals is to have a solid support system.  That is exactly what CreditSuite is. We can help you with every step of the process from finding starter vendors that will get your business credit score rolling to monitoring your credit so you know where you stand.  Building business credit isn’t hard, but it is definitely a process that requires intentionality and dedication. Let this year be the year you take the plunge and gain access to all the business funding you need to successfully run and grow your business.   

The post Start the New Year Off with a Bang: How to Start Business Credit in 2020 appeared first on Credit Suite.

It is Necessary to Build Business Credit with EIN, Not SSN

In today’s world we all have a number.  Every number associated with us, whether it is intentional or not, identifies us.  We have a Social Security number. We have loan numbers. There are PIN numbers. Even our phone number and street number can identify us in some way.  Because of this, when we want to build separate credit for a business, we have to get that business its own number. That number is known as an Employer Identification Number, or EIN.  You have to build business credit with EIN, not SSN.

Make Sure Accounts Report to Business Credit, Not Personal Credit, by Learning to Build Business with EIN, Not SSN

Before you can build business credit at all, you have to know what it is, and why you need it.  Maybe your personal credit is sufficient to run your business and you don’t think you need business credit.  Let’s take a closer look. 

What is Business Credit?

Business credit is credit that applies only to your business and its payment history.  It does not take into account your personal payment history or personal credit. It is a credit score based on the merits of your business alone, in your business name.  

Why Do You Need Business Credit? 

Regardless of what your personal credit looks like, you need business credit if you own a business.  Of course, this is obvious if your personal credit isn’t great. You need strong business credit to get funding for your business. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

What if your personal credit is great though?  Maybe you have already gotten some funding for your business based on personal credit, and you don’t see the big deal.  You didn’t need business credit to get that.  

The thing is, if you try to fund your business fully on the merits of your personal credit, your personal credit score will likely suffer even if you pay all your bills on time.  That’s because your personal credit score is affected by your debt-to-credit ratio. That is the amount of debt you have in relation to the amount of credit you have available. If you have $10,000 in credit available to you and a balance of $5,000, your debt-to-credit ratio is .5.  

The problem with running a business is that the expenses are much greater than personal expenses, by nature.  Personal credit accounts generally have lower limits than business accounts. This means that if you are trying to run a business on personal credit, your debt-to-credit ratio could stay high despite paying bills on time. That, in turn, will negatively affect your personal credit score. If you build business credit with EIN, you can avoid this issue and protect your personal credit score.

What You Need to Know About Reporting

To build separate credit for your business, two things have to happen.  First, your business has to be set up in a way that when you apply for credit for your business, those accounts report in your business name to business credit reporting agencies.  The way your business is set up also dictates whether those agencies recognize your business and record a score. If your business isn’t set up properly, those accounts will just report to your personal credit, even if you use the name of your business when you apply.

The next thing that has to happen is that you need to find accounts that will extend credit and report payments to the business CRAs without a credit check.  You need to be able to apply with only your business information, get approval, and have your payments reported. It is often difficult to get approval without a credit check. If they check your business credit initially, you will not have any.  That’s the goal right? You need to build business credit, but you typically need credit to get credit. We know a tip for how to get around this, and you have to build business credit with EIN to do it.  

How to Set Up Your Business to Build Business Credit with EIN

At the core, the only thing you really have to do to get an EIN is to apply for one here. It’s fast and free.  That’s not the whole story though when you want to build business credit with EIN. While the EIN is essential to building separate business credit, if you do not handle the other steps necessary, it will not do any good.  All the pieces of the puzzle have to be there for the picture to be complete. 

What are the other pieces of the puzzle necessary to build business credit with EIN?

Build Business Credit with EIN: Separate Contact Information

A business has to have its own contact information.  Sharing a phone number and address with the owner will not work when trying to build business credit. The owner’s phone number and address ties directly back to personal credit.  

It isn’t necessary to get a separate phone or even a location however.  You can use a VoIP business number that will ring to your regular number.  There are also virtual office services available that will give you a physical mailing address that you can use.  Many of these offer other services as well, such as live receptionist services and meeting spaces. 

Be sure to list your business contact information in the 411 directories.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Build Business Credit with EIN: Incorporation

To build business credit with EIN, a business must formally incorporate.  It is the most sure-fire way to separate a business from its owner. Whether you choose to incorporate as a corporation, s-corp, or LLC will depend on a couple of things.

First, any of these options work to help build business credit with EIN.  However, they offer different levels of protection and cost. For example, organizing as a corporation will cost the most, but it offers the most liability protection.  An s-corp is a little less costly, but it also offers a little less protection. If you choose to become an LLC you will have the least liability protection but it also is the least expensive option.  Choose the one that fits your budget and liability protection needs the best.

Build Business Credit with EIN: Get a D-U-N-S Number

Dun & Bradstreet is the largest and most commonly used business credit CRA.  The problem is, if accounts are reporting your payments to D&B and you do not have a D-U-N-S number, it will not do any good.  You have to have this number to have a credit file with Dun & Bradstreet. 

Build Business Credit with EIN: Open a Business Bank Account

This is huge for a number of reasons.  First, those accounts that will offer credit without a credit check often want to see a dedicated business bank account with a minimum balance.  Second, it helps keep business and personal expenses separate for tax purposes. 

Be sure to use your EIN and business contact information when you open the account.

Build Business Credit With EIN: Get Accounts Reporting

Once you have an EIN and you have taken the other steps necessary to set up your business as separate from you as the owner, it is time to get accounts reporting to the business credit agencies.  This is where the EIN gets put to good use.  

There are certain vendors, called starter vendors, that will extend net 30 terms without a credit check.  They will also report those payments to the business CRAs. The trick is, you need to set up accounts with them using your business information, including using your EIN and not your SSN.  If you put your SSN on there things could get confused and the payments may report to personal credit rather than business credit. 

We call this the vendor credit tier.  Go here to find out more about the credit tiers and starter vendors. 

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Build Business Credit with EIN: A Word About Credit Cards

After you work through the business credit tier, it will be time to apply for business credit cards in the other tiers.  You can find out more about the process and the other credit tiers here. However, you may need to use your SSN for this anyway. Mostly it’s for identification purposes, but sometimes they want to check personal credit as well.  This is because most credit cards require a personal guarantee even for business cards. That doesn’t mean that those accounts will end up on your personal credit report, but until your business credit is strong enough from working the process, your personal credit could affect approval.

There are a few cards, however, that do not require a personal guarantee.  

Business Cards That Do Not Require a Personal Guarantee 

Brex Corporate Card

This card is a stand out.  It isn’t connected to a specific retailer so it is much more flexible than other business credit cards that do not require a personal guarantee.  In addition, you can earn rewards! Specifically, you can earn one point per dollar on purchases. You can also get credits and discounts on certain services . 

One condition is that you have to pay the balance in full each month.  It isn’t revolving credit in the traditional sense. You cannot carry a balance. 

Even though they do not require a personal guarantee, Brex knows exactly what it is looking for in a cardholder. They want innovative businesses that use modern technology. In addition, they want to see a healthy business specific bank account.  It is best if it maintains a balance of $100,000 or more.  

The Brex Corporate Card has no annual fee.  It also offers other reward levels based on the type of spending, in addition to the 1 point per dollar spent on regular purchases.  These include: 

  • 7x points on taxis and ridesharing services
  • 4x points on flights, AirBnbs, and hotels when you book with Brex
  • 2x points on software purchases that are recurring

There is an introductory offer of 30,000 bonus points and card fees waived for life after approval. Other perks include credit for ZenDesk and Amazon Web Services.  There are discounts on WeWork and Salesforce also.

In addition to a business bank account with $100,000 balance, they also want you to have an EIN.

Bremer Bank Visa Signature Business Company Card

The Bremer Bank Visa Signature Business Company Card is an actual business credit card that has no personal guarantee.  It also has high income requirements and still prefers to work with medium to large businesses.  If you are able to get one, you will enjoy no annual fee and a rewards program. 

To qualify, you must have at least $1,000,000 in annual revenue and $350,000 in net annual income for the previous two years. 

Shell Small Business Card

The Shell Small Business Card is only good at Shell gas stations, and it offers no rewards.  The best thing about it other than it being one of the few business credit cards that does not require a personal guarantee, is that it can be a nice tool for employees on the road a lot.  It offers options such as purchase limits and specific station limitations.  Also, it can be a convenient tool for companies with employees who are always on the road. There is no annual fee, but cardholders have to be associated with a government entity, nonprofit, or earn at least $1 million annually for the past 3 years. 

Sam’s Club Business Mastercard

Surprisingly, the Sam’s Club Business Mastercard is one of the more flexible options for business credit cards that do not require personal guarantee.  You are not limited to using it only at Sam’s Club. In fact, you can use it anywhere they accept Mastercard.  It also offers great rewards on gas, dining, and travel.  

There is no annual fee, but you do have to have a Sam’s Club membership.  Currently, you get a $20 statement credit if you spend $50 or more at Sam’s Club the same day you open the card.  Rewards include 5% cash back on gas up to $6,000 in a year. After that, you get 1%. There is also a 3% cash back on dining and travel rewards, and 1% on all other purchases.  

To get this card, the business must make $5 million or more per year.  It also must be in operation for at least 2 years and have more than 10 employees for there to be no personal guarantee requirement. 

Office Depot OfficeMax Business Credit Account

Similar to the Shell card mentioned above, the Office Depot OfficeMax Business Credit Account is not known for its flexibility.  It is only good at Office Depot stores, officedepot.com, and OfficeMax.  They do not offer rewards, but there is an introductory bonus. If you spend at least $150 in the first 60 days after opening the account you get a $50 statement credit.  

It is Possible to Build Business Credit With EIN, You Just Have to Know Where to Start

build biz credit with EIN Credit Suite

You have to use your EIN, not your SSN, to build business credit.  You cannot have separate business credit if you keep applying for credit with your SSN.  Your business has to have its own identifying number. That’s the EIN. While this is the only step necessary to build separate credit, it is a necessary step.  Without and EIN, the other steps will make no difference at all. 

After you have your EIN and your business set up as a separate, fundable entity, look for those starter vendors that will issue credit and report payments to build your score. 

 

The post It is Necessary to Build Business Credit with EIN, Not SSN appeared first on Credit Suite.

Local Business Credit Cards

Local Business Credit Cards A great deal of individuals connect charge card with simply individual bank card which a specific posses as well as utilizes for buying and so on. There is one more classification of credit rating cards as well as that is called little organisation credit scores cards. As recommended by the name …

Get Bad Credit Business Credit Cards

Need bad credit business credit cards but don’t know where to turn? We’ve got you covered.

The Absolute Best Bad Credit Business Credit Cards

We researched a ton of bad credit business credit cards for you. So, here are our choices.

Per the SBA, business credit card limits are a whopping 10 – 100 times that of consumer cards!

This shows you can get a lot more cash with business credit. And it also means you can have personal credit cards at retailers. So, you would now have an added card at the same retailers for your business.

And you will not need collateral, cash flow, or financials to get company credit.

Bad Credit Business Credit Cards: Benefits

Perks can differ. So, make certain to choose the benefit you would prefer from this variety of options.

Secure Bad Credit Business Credit Cards for Average Credit

Capital One® Spark® Classic for Business 

For fair credit, we like the Capital One Spark Classic for Business. It has no yearly fee. There are cash-back rewards. The card earns an unlimited 1% cash back on all purchases. There is an annual fee of $0.

With this card, you will get benefits including an auto rental collision damage waiver, and purchase security. And you also get extended warranty coverage. And you get travel and emergency assistance services.

But BEAR IN MIND: the ongoing APR is 24.74% variable APR. And the penalty APR is even higher, 31.15%. Also, there is no sign-up bonus.

Get it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/ 

Credit Builder Bad Credit Business Credit Cards – Make Your Credit Surge!

Discover it® Student Cash Back

Make sure to look at the Discover it® Student Cash Back card. It has no annual fee. The card also offers a six-month introductory period of 0% APR on purchases. And there is an APR of 14.99 – 23.99% variable on all purchases after that period.

One one-of-a-kind feature is that it provides an incentive for students to maintain good grades with a $20 statement credit. If scholars earn a GPA of 3.0 or better each school year, the card will award the $20 statement credit each year for up to five years.

Details

Use this card to build personal credit. While this is a personal credit card versus a business credit card, for new credit users, their FICO scores will be important. And this card provides an outstanding way to raise FICO while also getting rewards.

You can get 5% cash back at different places each quarter like grocery stores, gas stations, restaurants or Amazon.com up to the quarterly maximum. After that, this card offers unlimited 1% cash back on all purchases.

In the first year, all cash back rewards are matched 100%.

Downsides include a cash advance fee of either $10 or 5% of the amount of each cash advance, whichever is more. And even though they waive the first late payment fee, a fee of up to $37 applies on all other late payments. There is also a returned payment fee of up to $37.

Get it here: https://www.discover.com/credit-cards/cash-back/it-card.html 

Reliable Low APR/Balance Transfers Bad Credit Business Credit Cards

Discover it® Cash Back

Check out the Discover it® Cash Back card. There is a 10.99% introductory APR for six months from date of first transfer. So, this is for transfers under this offer which post to your account by January 10, 2019.

After the introductory APR expires, your APR will be 14.99% to 23.99%. So, this is based on your creditworthiness. Your APR will vary with the market, which is based on the Prime Rate.

Details

You can get 5% cash back at different places each quarter. So, these are places like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs. But this is up to the quarterly maximum each time you activate. Plus, automatically get unlimited 1% cash back on all other purchases.

You will get an unlimited dollar-for-dollar match of all the cash back you have gotten at the end of your first year, automatically.

Get it here: https://www.discover.com/credit-cards/cash-back/it-card.html 

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Ironclad Secured Bad Credit Business Credit Cards

Wells Fargo Business Secured Credit Card

Have a look at the Wells Fargo Business Secured Credit Card. It charges a $25 annual fee per credit card (up to 10 employee cards). It also requires a minimum security deposit of $500 (up to $25,000) and it is meant to help cardholders establish or rebuild their credit.

Choose this credit card if you want to get 1.5% per dollar in purchases with no limits or get one point for every dollar in purchases. You also get 1,000 bonus points for every month your company makes $1,000 in purchases on the card.

Details

Also, you get free FICO scores every month. There are no foreign transaction fees. It is possible to upgrade to unsecured credit. Your account is regularly reviewed. And you may become eligible for an upgrade to an unsecured card with responsible use over time. Approval is not guaranteed and depends on factors including how you manage this and your other accounts.

APR is the current prime rate plus 11.90%. There is no introductory APR period and no sign-up bonus. This is not a credit card for balance transfers.

Get it here: https://www.wellsfargo.com/biz/business-credit/credit-cards/secured-card/ 

Bad Credit Business Credit Cards with 0% APR – Pay Zero!

Bank of America® Business Advantage Travel Rewards World Mastercard® Credit Card 

The Bank of America® Business Advantage Travel Rewards World Mastercard® credit card has no annual fee and comes with a 0% introductory APR on purchases for the first nine months. Afterwards, the card has a 13.24 – 23.24% variable APR

Earn 3 points/dollar spent when you book travel through the Bank of America Travel Center and 1.5 points/dollar on all other purchases. You can get unlimited points and points will never expire.

Details

There is a 25,000-point sign-up bonus when you spend $1,000 in the initial 60 days of starting the account. Cardholders get travel accident insurance, and lost luggage reimbursement. 

They also get trip cancellation coverage, trip delay reimbursement and other benefits.

There is no introductory rate for balance transfers. Also, bonus categories are limited.

Get it here: https://www.bankofamerica.com/smallbusiness/credit-cards/products/travel-rewards-business-credit-card/ 

JetBlue Plus Card

Consider the JetBlue Plus Card for yet another offer of a 0% introductory APR

Get six points/dollar on JetBlue purchases, two points/dollar at eateries and grocery stores. And get one point/dollar on all other purchases. 

Details

Spend $1,000 in the first 90 days and pay the annual fee. So, then you can earn 40,000 bonus points. New cardholders receive a 12 month, 0% introductory APR on balance transfers made within 45 days of account opening.

Afterwards, the variable APR on purchases and balance transfers is 17.99%, 21.99% or 26.99%, based on creditworthiness. Benefits include a free first checked bag and 50% savings on in-flight purchases.

There is a $99 annual fee for this card.

Get it here: https://cards.barclaycardus.com/cards/jetblue-card/  

Bad Credit Business Credit Cards Credit Suite

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

Outstanding Bad Credit Business Credit Cards with No Annual Fee 

Uber Visa Card 

Check out the Uber Visa Card. Uber is the first ride-sharing service to offer a credit card, in a partnership with Visa and Barclays.

The card provides 4% back per dollar spent at restaurants, takeout and bars, including UberEATS. Also, earn 3% back on hotel, airfare and vacation home rentals. And earn 2% back on online purchases. 

So, this includes retailers and subscription services such as Uber and Netflix. And get 1% back on all other purchases. Each percent/point has a value of 1 cent. Redeem points for cash back, gift cards or Uber credits directly in the app.

By spending at least $500 in the initial 90 days, users can earn a $100 sign-up bonus. Cardholders spending a minimum of $5,000 yearly are eligible to receive a $50 credit toward online subscription services. 

Details

If you pay your cell phone bill with this card, you are insured up to $600 for cellphone damage or theft.

Cardholders are eligible for exclusive access to specific events and offers. Uber expects most of these offers will be available in major cities like New York, San Francisco, Los Angeles, Chicago and DC. There is no foreign transaction fee.

But there is no introductory rate. So the APR is a variable 16.99%, 22.74% or 25.74%, based on your creditworthiness. Cardholders with less than stellar credit will be on the higher end of the range. 

Also, there are restrictions on Uber credits. To redeem points as credits in the Uber app, accumulate a minimum of 500 points, or $5. Cardholders can convert a maximum of 50,000 points, or $500, per day.

Get it here: https://www.uber.com/c/uber-credit-card/ 

Costco Anywhere Visa® Business Card by Citi 

Not taking Uber? Then you’ll need to fill your gas tank someway. Why not do so with the Costco Anywhere Visa® Business Card by Citi?

This credit card earns cash back with every purchase. Get 4% cash back on the first $7,000 spent on eligible gas purchases annually (1% after that). Earn 3% cash back at restaurants and on eligible travel purchases. Also, earn 2% cash back at Costco and Costco.com. And earn 1% cash back on all other purchases.

So note: the $0 yearly fee is only for Costco members. And an active Costco membership is required. Cardholders will get access to damage and theft purchase protection, extended warranty coverage and travel accident insurance.

Also, there is no sign-up bonus available with this card.

Get it here: https://www.citi.com/credit-cards/credit-card-details/citi.action?ID=Citi-costco-anywhere-visa-business-credit-card

Ink Business Cash℠ Credit Card

Have a look at the Ink Business Cash ℠ Credit Card. Businesses can earn cash back with each purchase. Spend $3,000 in the initial three months from account opening. And you’ll get a $500 bonus cash back.

There is a $0 yearly fee with a 0% introductory APR for 12 months on purchases and balance transfers. Afterwards, the APR is a 15.24 – 21.24% variable. 

The card includes travel and purchase coverage benefits. So, this includes an auto rental collision damage waiver and extended warranty protection.

Details

Earn bonus cash back on business categories. So, these include office supply stores, telecommunications, gas stations and restaurants.

Note: this card has a balance transfer fee. Pay 5% of the amount transferred or $5, whichever is more. Also, there is a foreign transaction fee of 3%.

Get it here: https://creditcards.chase.com/small-business-credit-cards/ink-cash 

United MileagePlus Explorer Business Card

Get a good look at the United MileagePlus Explorer Business Card.

Get 2 miles/dollar with United and at restaurants, filling stations and office supply stores. All other purchases get 1 mile/dollar. Earn a 50,000-mile sign-up bonus after spending $3,000 in the first three months from account opening. 

Benefits include priority boarding, a free first checked bag for you and a companion on the same reservation.

Details

Also, get two United Club passes annually. And get hotel and resort perks including upgrades. In addition, get early check-in and late checkout. And get an auto rental collision damage waiver. 

Also, get baggage delay insurance, lost luggage reimbursement, trip cancellation and interruption insurance. Finally, get trip delay reimbursement, purchase protection, price protection and concierge service.

After the first year, the card has an annual fee of $95. APR of 17.99% – 24.99%, based on creditworthiness.

Get it here: https://creditcards.chase.com/small-business-credit-cards/united-mileageplus-explorer-business 

Starwood Preferred Guest® Business Credit Card from American Express

Another choice is the Starwood Preferred Guest Business Credit Card from American Express. 

This credit card is for those who stay at Starwood Preferred Guest and Marriott hotels often. Get six points per dollar of eligible purchases at participating SPG and Marriott Rewards hotels.

And earn four points per dollar at American restaurants, American gas stations, and on American purchases for shipping. 

Also, earn four points to the dollar on wireless telephone services purchased directly from US service providers. For all other eligible purchases, get two points per dollar.

Details

Earn 75,000 bonus points when you spend $3,000 in the initial three months of account opening. Benefits include free in-room premium internet access, Sheraton Club lounge access, and purchase protection. 

Plus, you get car rental loss and damage insurance. And you get baggage insurance. There is also a global assistance hotline. And there is a roadside assistance hotline. And get travel accident insurance and extended warranty coverage.

The biggest issue is the yearly fee. There is a $0 introductory annual fee for the first year, then it’s $95 thereafter. Plus, there is no 0% introductory APR. Instead, there is a 17.74 – 26.74% variable APR

Get it here: https://www.americanexpress.com/us/credit-cards/business/business-credit-cards/spg-amex-starwood-credit-card 

Poor Credit Biz Cards Credit Suite

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

Terrific Bad Credit Business Credit Cards for Cash Back

SimplyCash Plus Business Credit Card from American Express

Check out the SimplyCash Plus Business Credit Card from American Express. There is a $0 yearly fee. And there is a 0% APR on purchases So this is for the first 15 months an account is open. 

But when the introductory period expires, the APR for purchases is 14.24 to 21.24%. So, this is variable and based on creditworthiness.

Details

This credit card has various benefits. These include purchase protection, car rental loss and damage insurance. And they also include a baggage insurance plan, extended warranty coverage and a global assist hotline.

Also, get 5% cash back at US office supply stores and on wireless telephone services. So, these must be bought from American providers. But this applies to the initial $50,000 of yearly spending. Then, you get 1% cash back.

You also get 3% cash back on spending category of your choice. So, this is from eight distinct categories. They include airfare, gas, advertising and computer purchases. But it applies to the first $50,000 of yearly spending. Then, you get 1% cash back.

Cash-back bonuses are automatically credited to the customer’s billing statement.

Note: you cannot use this credit card for balance transfers. There is a foreign transaction fee of 2.7%. The card charges up to $38 in late fees. And the returned check fee is also $38. The penalty APR is 29.99%. 

And, it kicks in if you have two or more late payments within 12 months. It can also apply if you fail to make the minimum payment on time or have a returned payment.

Get it here: https://www.americanexpress.com/us/small-business/credit-cards/simply-cash-plus-business-credit-card/44279 

Capital One® Quicksilver® Card 

Look at the Capital One® Quicksilver® Card. It offers flat-rate rewards of 1.5% on all purchases. There are no limits to the amount of cash back rewards which cardholders can earn. Also, the card has a $0 annual fee.

New cardholders have a 0% APR on purchases and balance transfers for the first 15 months after opening the account. Then afterwards they have a 14.74 – 24.74% (variable) APR after that. 

A cash bonus of $150 is available for those who make at least $500 in purchases within 3 months of account opening.

Details

Also, cash back rewards do not expire for the life of the account. And there is no limit to how much you can earn.

This credit card also offers travel accident insurance. And you get an auto rental collision damage waiver. There are no foreign transaction fees. And there is extended warranty coverage.

Downsides are the flat reward rate, not allowing for any more than that. And the higher APR after the first 15 months.

Get it here: https://www.capitalone.com/credit-cards/quicksilver/ 

Bad Credit Biz Cards Credit Suite

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

The Best Bad Credit Business Credit Cards for You

Your outright best business credit cards hinge on your credit history and scores.

Only you can pick which features you want and need. So, be sure to do your homework. What is excellent for you could be disastrous for somebody else.

And, as always, make sure to build credit in the recommended order for the best, speediest benefits.

The post Get Bad Credit Business Credit Cards appeared first on Credit Suite.

Make Your List and Check It Twice: Building Business Credit Step by Step

Building business credit, step by step, is not as hard as it may seem at first glance.  It is, however, a process. There are specific steps that must be taken. These steps must be taken in order.  You can’t wrap a gift before you buy it, or even buy it before you know who you are buying for. During holiday seasons, you have to make a gift list.  Then you work from that list marking items or people off as you go. The same is true for business credit. You must take specific credit building steps, in order.  What are the steps? 

10 Steps for Building Business Credit Step by Step

When making your holiday gift list, you not only need to know who to put on the list, but a little something about each one.  You have to know something about what they like, dislike, what size they wear, and more to have any inkling of what might make a nice gift for them. 

Similarly, before you start working through building business credit step by step, you need to understand what business credit is and why you need it. For example, small business credit is credit in a company’s name. It doesn’t link to an entrepreneur’s personal credit.  This means, a business owner’s business and consumer credit scores can be very different.

Why do you need it?  Why is personal credit not enough? There are a few reasons.  First, because company credit is distinct from personal, it helps to protect a small business owner’s personal assets in the event of legal action or business bankruptcy.

In addition, consumer credit scores depend on payments, but also various other elements like credit utilization percentages. That means if your balances hover close to your limits on a regular basis, your score will suffer regardless of whether you make the payments you are supposed to.  Business expenses are higher by nature, meaning if you use personal credit for them your balances are naturally going to be higher. The result will likely be a higher credit utilization ratio and lower personal credit score.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Now that you know what business credit is and why you need it, it’s time to start making your list so you know what steps to take, and in what order. 

Step 1 in Building Business Credit Step by Step: Separate Contact Information

building business credit step by step Credit Suite

It is tempting for new business owners to simply use their own contact information.  It’s easy and its free. However, this will not work for business credit building purposes.  If you get credit accounts in your business name, but they have your personal contact information, those accounts are going to report information to your personal credit report. Your business needs its own phone number and business address.

Don’t worry, even if you run your business from your home or your home computer, you do not have to buy another building or even a separate phone.  There are a ton of online options for VoIP phone numbers that will forward to an existing number. There are even virtual offices that offer a physical mailing address along with other, optional features.  These may include messaging services, live receptionist services, meeting facilities, and more.

Be sure to list business information in the 411-business directory.  Do that here. 

Step 2 in Building Business Credit Step by Step: Get an EIN

If you apply for credit using your SSN, those accounts will report to your personal credit regardless of what name, address, or telephone number you use.  You can get an EIN from the IRS that works the same way an SSN does, but for your business.  Use your EIN to apply for credit in your business name instead of your SSN. 

Step 3 In Building Business Credit Step by Step: Formally Incorporate

You have to incorporate.  There are many reasons to do this.  However, the main purpose when building business credit is to create a definitive separation between yourself and your business.  There are a few options.

  • C Corp

This is the most complicated and expensive option.  Before choosing it, 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 less complicated and less costly 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.  That avoids the double taxation that corporations have. 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, but still 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. 

Step 4 in Building Business Credit Step by Step: Get a D-U-N-S Number

Dun and Bradstreet (D&B) is the largest and most widely used business credit reporting agency.  You have to have the number to have a file with D&B. To have business credit, you definitely need a file with them.  The number is free on the Dun & Bradstreet website, but they will try to upsell you.  Stay strong and just get the number.

Step 5 in Building Business Credit Step by Step: Open a Separate Business Bank Account

Open up a separate, dedicated business bank account and use it exclusively for business transaction.  Intermingling business and personal finances can cause a host of problems. Having a separate business bank account will help you keep things separate for tax purposes.  It will also help creditors recognize your business as a separate entity from you as the owner.

Step 6 in Building Business Credit Step by Step: Professional Website and Email Address

You might think there is no way this should matter when it comes to the steps to building business credit.  However, if you do not have a website in today’s business world, you might as well not exist. Just having a website isn’t enough though.  It has to be professionally designed and put together. Don’t use free hosting either. Pay for hosting with a company like GoDaddy. Free hosting is not professional. 

The email address goes along with the other contact information.  Don’t share your personal address with your business, but don’t use a free email service either.  Your business email address needs to have the same URL as your website. 

Step 7 in Building Business Credit Step by Step: Establish Tradelines in the Vendor Credit Tier

Also known as starter vendors, these are the businesses from which you purchase the things you use day to day in your business. It may be inventory, raw materials, office supplies, or any number of things. They offer net 30 terms on invoices.  After you pay, they report those payments to the business credit reporting agencies. This is how you get accounts initially reporting to your business credit report and start building your score. 

 

Step 8 in Building Business Credit Step by Step: Apply for Cards in the Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, you can start to apply for cards in the retail credit tier. These are cards from stores like Office Depot and Staples.  In this tier, you can only use the cards in the stores that issue them.

There are several options that report to various credit reporting agencies.  For example, Lowe’s reports to D&B, Equifax and Business Experian. They want to see a D-U-N-S and a PAYDEX score of 78 or more.  If you have handled your vendor credit properly, this will be no problem.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Step 9 in Building Business Credit Step by Step: Move on to The Fleet Credit Tier

After there are 10 or so of these accounts reporting you can apply for cards in the fleet credit tier. These come from companies like BP and Conoco. They are limited to use for fuel and vehicle maintenance expenses.

Shell is another example of a company in this tier.  They report to D&B and Business Experian. You need a PAYDEX Score of 78 or more and a 411-business phone listing. They sometimes want a certain amount of time in business or minimum revenue. However, if you already have enough credit, that won’t be necessary.  If you follow these steps in order and handle your credit responsibly, you will have the credit you need to get approval.

Step 10 in Building Business Credit Step by Step: The Bow on Top is The Cash Credit Tier

At this point, if you have used your credit wisely, you can apply for cards in the cash credit tier.  They include cards from Visa, Discover, MasterCard and others that are not limited by location or type of expense.  Typically, they have higher limits and lower interest rates. 

The Gift that Keeps on Giving: Monitor Your Business Credit

Your business credit can continue to help you run and grow your business indefinitely.  However, you are going to want to keep an eye on it. Make sure it is being reported and fix any mistakes as soon as possible. Not only that, but monitoring your credit reports is the only way to know when you have enough accounts reporting to move on to the next credit tier.

We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the CRAs. See: www.creditsuite.com/monitoring.

You can also monitor through the CRAs, but it will cost significantly more.  For example, at D&B you can monitor at: www.dandb.com/credit-builder. At Experian, go here:www.smartbusinessreports.com/Landing/1217/.

Monitor your account with Equifax here: www.equifax.com/business/business-credit-monitor-small-business. Experian and Equifax cost about $19.99; D&B ranges from $49.99 to $99.99.

Update Your Records

If you see something missing or out of date, be sure to update the information.  At D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm. With Experian, go here: www.experian.com/small-business/business-credit-information.jsp.  For Equifax, go here: www.equifax.com/business/small-business.

Correct Mistakes

You didn’t go through the trouble of building business credit step by step for nothing.  Don’t let simple mistakes ruin all your hard work. Errors in your credit report(s) can be taken care of. There is a particular way each reporting agency wants it done however.

Disputing credit report mistakes usually means you mail a paper letter with copies of any proof of payment with it. These are documents like receipts and cancelled checks. Never mail the original copies. Always mail copies and retain the originals.

Fixing credit report mistakes requires that you precisely detail any charges you challenge. Make your dispute letter as clear as possible. Be specific about the problems with your report. Use certified mail to have proof that you sent in your dispute.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

Dispute an Equifax report by following the directions here: www.equifax.com/small-business-faqs/#Dispute-FAQs.

You can dispute inaccuracies on your or your business’s Experian report by following the directions here: www.experian.com/small-business/business-credit-information.jsp.

And D&B’s PAYDEX Customer Service phone number is here: www.dandb.com/glossary/paydex.

You Made Your List, Now Check it Twice

Now that you have a list of the steps you need to take to build business credit, you can start checking items off.  A lot of this you may have already taken care of. Some of it you may have thought it was too late to accomplish. For example, maybe you thought it was too late to worry about an address or phone number if you are already in operation using your own.  

 

While many of these steps are easier to take while you are initially setting up your business, it is never too late to start building business credit step by step.  Start making that list and checking things off today. The sooner you start, the sooner you will have access to the business funding you need. 

 

The post Make Your List and Check It Twice: Building Business Credit Step by Step appeared first on Credit Suite.

Business Credit Cards With Bad Personal Credit? They’re Not Out of Reach

Can You Get Business Credit Cards With Bad Personal Credit? We Show You How!

Is it possible to get business credit cards with bad personal credit? You better believe it is!

We looked at a lot of business credit cards with bad personal credit, and did the research for you. So, here are our favorites.

Per the SBA, small business credit card limits are a whopping 10 ؘ– 100 times that of personal cards!

This shows you can get a lot more money with small business credit. And it also means you can have personal credit cards at stores. So, you would now have an extra card at the same retail stores for your company.

And you will not need collateral, cash flow, or financials to get small business credit.

Business Credit Cards With Bad Personal Credit: Benefits

Benefits can vary. So, make certain to select the perk you would prefer from this variety of alternatives.

Secure Business Credit Cards With Bad Personal Credit for Average Credit

Capital One® Spark® Classic for Business

For fair credit, we like the Capital One Spark Classic for Business. It has no annual fee. There are cash-back rewards. The card gets an unlimited 1% cash back on all purchases. There is an annual fee of $0.

With this card, you will get benefits including an auto rental collision damage waiver, and purchase security. And you also get extended warranty coverage. And you get travel and emergency assistance services.

But REMEMBER: the ongoing APR is 24.74% variable APR. And the penalty APR is even higher, 31.15%. Also, there is no sign-up bonus.

Get it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/

Credit Builder Company Credit Cards – Make Your Credit Surge!

Discover it® Student Cash Back

Be sure to check out the Discover it® Student Cash Back card. It has no annual fee. The credit card also offers a six-month introductory period of 0% APR on purchases. And there is an APR of 14.99 – 23.99% variable on all purchases after that period.

One distinct feature is that it provides an incentive for students to maintain good grades with a $20 statement credit. If students earn a GPA of 3.0 or higher each school year, the card will award the $20 statement credit every year for up to five years.

Details

Use this credit card to build personal credit. While this is a personal credit card versus a business card, for new credit users, their FICO scores will be important. And this card provides an excellent way to raise FICO while also getting rewards.

You can earn 5% cash back at different places each quarter such as grocery stores, gas stations, restaurants or Amazon.com up to the quarterly maximum. After that, this credit card offers unlimited 1% cash back on all purchases.

In the first year, all cash back rewards are matched 100%.

Downsides include a cash advance fee of either $10 or 5% of the amount of each cash advance, whichever is more. And although they waive the first late payment fee, a fee of up to $37 applies on all other late payments. There is also a returned payment fee of up to $37.

Get it here: https://www.discover.com/credit-cards/cash-back/it-card.html

Ironclad Secured Credit Cards

Wells Fargo Business Secured Credit Card

Have a look at the Wells Fargo Business Secured Credit Card. It charges a $25 yearly fee per credit card (up to 10 employee cards). It also requires a minimum security deposit of $500 (up to $25,000) and it is designed to help cardholders develop or rebuild their credit.

Pick this card if you wish to get 1.5% per dollar in purchases with no limits or earn one point for every dollar in purchases. You also get 1,000 bonus points for every month your company makes $1,000 in purchases on the card.

Details

Also, you get free FICO scores every month. There are no foreign transaction fees. It is possible to upgrade to unsecured credit. Your account is regularly reviewed. And you may become eligible for an upgrade to an unsecured card with responsible use over time. Approval is not guaranteed and depends on factors including how you manage this and your other accounts.

APR is the current prime rate plus 11.90%. There is no introductory APR period and no sign-up bonus. This is not a card for balance transfers.

Get it here: https://www.wellsfargo.com/biz/business-credit/credit-cards/secured-card/

Reliable Low APR/Balance Transfers Business Credit Cards With Bad Personal Credit

Discover it® Cash Back

Look at the Discover it® Cash Back card. There is a 10.99% introductory APR for six months from date of first transfer. So, this is for transfers under this offer which post to your account by January 10, 2019.

After the introductory APR expires, your APR will be 14.99% to 23.99%. So, this is based on your creditworthiness. Your APR will vary with the market, which is based on the Prime Rate.

Details

You can get 5% cash back at different places every quarter. So, these are establishments like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs. But this is up to the quarterly maximum each time you activate. Also, automatically get unlimited 1% cash back on all other purchases.

You will earn an unlimited dollar-for-dollar match of all the cash back you have gotten at the end of your first year, automatically.

Get it here: https://www.discover.com/credit-cards/cash-back/it-card.html

Small Business Credit Cards With Bad Personal Credit with 0% APR – Pay Absolutely Nothing!

Bank of America® Business Advantage Travel Rewards World Mastercard® Credit Card

The Bank of America® Business Advantage Travel Rewards World Mastercard® credit card has no annual fee and comes with a 0% introductory APR on purchases for the initial nine months. Afterwards, the card has a 13.24 – 23.24% variable APR

Earn 3 points/dollar spent when you book travel through the Bank of America Travel Center and 1.5 points/dollar on all other purchases. You can earn unlimited points and points never expire.

Details

There is a 25,000-point sign-up bonus when you spend $1,000 within the first 60 days of opening up the account. Cardholders get travel accident insurance, and lost luggage reimbursement.

They likewise get trip cancellation coverage, trip delay reimbursement and other advantages.

There is no introductory rate for balance transfers. Also, bonus categories are limited.

Get it here: https://www.bankofamerica.com/smallbusiness/credit-cards/products/travel-rewards-business-credit-card/

JetBlue Plus Card

Check out the JetBlue Plus Card for yet another offer of a 0% introductory APR

Get six points/dollar on JetBlue purchases, two points/dollar at restaurants and grocery stores. And get one point/dollar on all other purchases.

Details

Spend $1,000 in the initial 90 days and pay the yearly fee, and get 40,000 bonus points. New cardholders receive a 12 month, 0% introductory APR on balance transfers made in 45 days of account opening.

After that, the variable APR on purchases and balance transfers is 17.99%, 21.99% or 26.99%, based on creditworthiness. Benefits include a free first checked bag and 50% savings on in-flight purchases.

There is a $99 yearly fee for this card.

Get it here: https://cards.barclaycardus.com/cards/jetblue-card/

Outstanding Business Credit Cards With Bad Personal Credit with No Annual Fee

Uber Visa Card

Check out the Uber Visa Card. Uber is the very first ride-sharing service to offer a credit card, in a partnership with Visa and Barclays.

The card provides 4% back per dollar spent at restaurants, takeout and bars, including UberEATS. Also, get 3% back on hotel, airfare and vacation home rentals. And get 2% back on online purchases.

So, this includes retailers and subscription services like Uber and Netflix. And get 1% back on all other purchases. Each percent/point has a value of 1 cent. Redeem points for cash back, gift cards or Uber credits directly in the app.

By spending at least $500 in the first 90 days, users can earn a $100 sign-up bonus. Cardholders spending a minimum of $5,000 annually are eligible to receive a $50 credit toward online subscription services.

Details

If you pay your cellphone bill with this card, you are insured up to $600 for cellphone damage or theft.

Cardholders are eligible for exclusive access to specific events and offers. Uber expects the majority of these offers will be available in major cities like New York, San Francisco, Los Angeles, Chicago and DC. There is no foreign transaction fee.

But there is no introductory rate. The APR is a variable 16.99%, 22.74% or 25.74%, based on your creditworthiness. Cardholders with less than stellar credit will be on the higher end of the range.

Also, there are restrictions on Uber credits. To redeem points as credits within the Uber app, accumulate a minimum of 500 points, or $5. Cardholders can convert a maximum of 50,000 points, or $500, per day.

Get it here: https://www.uber.com/c/uber-credit-card/

Costco Anywhere Visa® Business Card by Citi

Not taking Uber? Then you’ll want to fill your gas tank someway. Why not do so with the Costco Anywhere Visa® Business Card by Citi?

This card earns cash back with every purchase. Earn 4% cash back on the first $7,000 spent on eligible gas purchases annually (1% after that). Earn 3% cash back at restaurants and on eligible travel purchases. Also, earn 2% cash back at Costco and Costco.com. And earn 1% cash back on all other purchases.

Keep in mind: the $0 yearly fee is only for Costco members. And an active Costco membership is required. Cardholders will get access to damage and theft purchase protection, extended warranty coverage and travel accident insurance.

Also, there is no sign-up bonus offered with this card.

Get it here: https://www.citi.com/credit-cards/credit-card-details/citi.action?ID=Citi-costco-anywhere-visa-business-credit-card

business cards bad FICO Credit Suite

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

Ink Business Cash℠ Credit Card

Consider the Ink Business Cash ℠ Credit Card. Businesses can get cash back with every single purchase. Spend $3,000 in the first three months from account opening. And you’ll get a $500 bonus cash back.

There is a $0 annual fee with a 0% introductory APR for 12 months on purchases and balance transfers. Thereafter, the APR is a 15.24 – 21.24% variable.

The credit card features travel and purchase coverage benefits. So, this includes an auto rental collision damage waiver and extended warranty protection.

Details

Earn extra cash back on business categories. So, these include office supply stores, telecommunications, gas stations and restaurants.

Note: this credit card has a balance transfer fee. Pay 5% of the amount transferred or $5, whichever is greater. Also, there is a foreign transaction fee of 3%.

Get it here: https://creditcards.chase.com/small-business-credit-cards/ink-cash

United MileagePlus Explorer Business Card

Get a good look at the United MileagePlus Explorer Business Card.

Get 2 miles/dollar with United and at restaurants, filling stations and office supply stores. All other purchases earn 1 mile/dollar. Earn a 50,000-mile sign-up bonus after spending $3,000 in the initial three months from account opening.

Benefits include priority boarding, a free first checked bag for you and a companion on the same reservation.

Details

Also, get two United Club passes annually. And get hotel and resort perks including upgrades. On top of that, get early check-in and late checkout. And get an auto rental collision damage waiver.

Plus, get baggage delay insurance, lost luggage reimbursement, trip cancellation and interruption insurance. Finally, get trip delay reimbursement, purchase protection, price protection and concierge service.

After the first year, the card has an annual fee of $95. APR of 17.99% – 24.99%, based on creditworthiness.

Get it here: https://creditcards.chase.com/small-business-credit-cards/united-mileageplus-explorer-business

Starwood Preferred Guest® Business Credit Card from American Express

Another option is the Starwood Preferred Guest Business Credit Card from American Express.

This card is for those who stay at Starwood Preferred Guest and Marriott hotels often. Get six points per dollar of eligible purchases at participating SPG and Marriott Rewards hotels.

And get four points per dollar at American restaurants, US filling stations, and on US purchases for shipping.

Also, earn four points to the dollar on wireless telephone services purchased directly from US service providers. For all other eligible purchases, get two points per dollar.

Details

Get 75,000 bonus points when you spend $3,000 in the initial three months of account opening. Benefits include free in-room premium internet access, Sheraton Club lounge access, and purchase protection.

Plus, you get car rental loss and damage insurance. And you get baggage insurance. There is also a global assistance hotline. And there is a roadside assistance hotline. And get travel accident insurance and extended warranty coverage.

The most significant issue is the annual fee. There is a $0 introductory annual fee for the first year, then it’s $95 thereafter. Plus, there is no 0% introductory APR. Instead, there is a 17.74 – 26.74% variable APR

Get it here: https://www.americanexpress.com/us/credit-cards/business/business-credit-cards/spg-amex-starwood-credit-card

Terrific Business Credit Cards With Bad Personal Credit for Cash Back

SimplyCash Plus Business Credit Card from American Express

Look at the SimplyCash Plus Business Credit Card from American Express. There is a $0 annual fee. And there is a 0% APR on purchases So this is for the initial 15 months an account is open.

But when the introductory period expires, the APR for purchases is 14.24 to 21.24%. So, this is variable and based on creditworthiness.

Details

This credit card has various benefits. These include purchase protection, car rental loss and damage insurance. And they also include a baggage insurance plan, extended warranty coverage and a global assist hotline.

Also, earn 5% cash back at US office supply stores and on wireless phone services. So, these must be purchased from American service providers. But this pertains to the initial $50,000 of annual spending. Then, you get 1% cash back.

You also get 3% cash back on spending category of your choice. So, this is from eight distinct categories. They include airfare, gas, advertising and computer purchases. But it applies to the first $50,000 of annual spending. Then, you get 1% cash back.

Cash-back bonuses are automatically credited to the customer’s billing statement.

Note: you cannot use this credit card for balance transfers. There is a foreign transaction fee of 2.7%. The card charges up to $38 in late fees. And the returned check fee is also $38. The penalty APR is 29.99%.

And, it kicks in if you have two or more late payments within 12 months. It can also apply if you fail to make the minimum payment on time or have a returned payment.

Get it here: https://www.americanexpress.com/us/small-business/credit-cards/simply-cash-plus-business-credit-card/44279

Capital One® Quicksilver® Card

Look at the Capital One® Quicksilver® Card. It offers flat-rate rewards of 1.5% on all purchases. There are no limits to the amount of cash back rewards that cardholders can earn. Also, the card has a $0 annual fee.

New cardholders have a 0% APR on purchases and balance transfers for the first 15 months after opening the account. And after that they have a 14.74 – 24.74% (variable) APR after that.

A cash bonus of $150 is on offer for those who make at least $500 in purchases in 3 months of account opening.

Details

Also, cash back rewards do not expire for the life of the account. And there is no limit to how much you can earn.

This credit card also offers travel accident insurance. And you get an auto rental collision damage waiver. There are no foreign transaction fees. And there is extended warranty coverage.

Downsides are the flat reward rate, not allowing for any more than that. And the higher APR after the first 15 months.

Get it here: https://www.capitalone.com/credit-cards/quicksilver/

business credit cards with bad personal credit Credit Suite

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

Unbeatable Cards for Jackpot Rewards

Chase Sapphire Preferred® Card

Have a look at the Chase Sapphire Preferred® Card for travel points.

You can get two points per dollar spent on travel and dining at restaurants. And you can earn one point per dollar on all other purchases. Points can be redeemed for cash back, gift cards, or travel.

The card’s benefits include trip cancellation insurance, travel and emergency assistance services. They also include an auto rental collision damage waiver, purchase protection and extended warranty protection.

When you spend $4,000 in the first 3 months from account opening, you will get 50,000 bonus points. These points are worth $625 if you redeem them for travel through Chase Ultimate Rewards.

Details

You can earn an unlimited two points per dollar for travel and dining at restaurants. And after that earn one point per dollar for all other purchases. Points will transfer equally to 13 leading frequent travel programs with partners. So, these include British Airways, Southwest Airlines, United, and Marriott.

There is no 0% introductory APR on purchases or balance transfers. The card’s standard APR is 17.74 – 24.74% variable. Also, the card has an annual fee of $0 introductory for the first year. And then it skyrockets to $95.

Get it here: https://creditcards.chase.com/rewards-credit-cards/chase-sapphire-preferred

Ink Business Preferred ℠ Credit Card

Get a look at the Ink Business Preferred Credit Card from Chase. Cardholders earn 3 points for every dollar spent on travel, shipping, internet, cable, phone and qualifying advertising with the card. So, this is up to $150,000 each year. And all other purchases earn an unlimited one point per dollar spent.

This is a Visa credit card.

Cardholders get benefits like purchase protection, trip cancellation or interruption insurance. They also get cellphone protection. And they get extended warranty coverage. And they get an auto rental collision damage waiver.

Details

Earn 80,000 bonus points when you spend $5,000 in the first 3 months from account opening. There is an annual fee of $95. You can add employee cards at no additional cost.

This card only offers 3 points per dollar to a limit of $150,000 a year. So, this is for travel, shipping, internet, cable, phone and qualifying advertising. All other purchases get an unlimited flat rate of one point per dollar. And there is no introductory APR

Get it here: https://creditcards.chase.com/small-business-credit-cards/ink-business-preferred

business credit cards with bad personal credit Credit Suite

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

Small Business Credit Cards With Bad Personal Credit for Luxurious Travel Points

Capital One® Spark® Miles for Business

Be sure to check out the Capital One® Spark® Miles for Business card. With this card, you can get 2 miles per dollar on all purchases. When you spend $4,500 within the first 3 months of opening an account, you can earn 50,000 miles. So, that is worth $500 in travel.

Benefits for cardholders include an auto rental collision damage waiver, and purchase security. And they also include extended warranty coverage. And you get travel and emergency assistance services.

So cardholders will pay $0 introductory for the first year. But they will pay $95 after that for the annual fee.

There is no 0% APR for purchases or balance transfers with this card. So the APR is 18.74% (variable).

Get it here: https://www.capitalone.com/small-business/credit-cards/spark-miles/

IHG ® Rewards Club Premier Credit Card

Check out the IHG ® Rewards Club Premier Credit Card. it earns hotel rewards worldwide. For each dollar spent at participating IHG hotels, get 10 points. Earn two points per dollar spent at gas stations, grocery stores and restaurants.

And all, other purchases earn one point. New cardholders can get an 80,000-point sign-up bonus when they spend $2,000 in the first three months of account opening.

Details

This card provides a free one-night hotel stay each year. Plus, there is a wide array of benefits like travel and purchase coverage and an upgrade to Platinum Elite status with the IHG Rewards Club. The club offers complimentary room upgrades when available and guaranteed room availability.

The biggest issue is that the card does not offer a zero percent APR introductory rate. And the standard APR is 17.99 – 24.99% variable. Also, the yearly fee is $89.

Get it here: https://creditcards.chase.com/a1/ihg/premiernaep

Marriott Rewards® Premier Plus Credit Card

This credit card earns six points/dollar spent at participating Marriott and SPG hotels. And get two points/dollar on all other purchases.

Spend $3,000 in the initial three months from account opening and get two free night awards (each valued up to 35,000 points).

Cardholders get access to perks including a free one-night stay yearly after account anniversary. Also get travel and purchase protection. So, this includes free standard in-room Wi-Fi and priority late checkout.

Details

Perks include baggage delay reimbursement, and lost luggage reimbursement. There is also trip delay reimbursement. And there is purchase protection. Plus, there are concierge service and automatic Silver Elite status, which includes a 20% bonus on points.

Spend $35,000 each account year, and be upgraded to Gold Elite status. So, that includes a complimentary room upgrade, free daily breakfast and 4 PM late checkout.

There is an annual fee of $95. The APR is a 17.99– 24.99% variable.

Get it here: https://creditcards.chase.com/marriott/apply

The Perfect Business Credit Cards With Bad Personal Credit for You

Your absolute best business credit cards with bad personal credit will always hinge on your credit history and scores.

Only you can choose which features you want and need. So, make sure to do your homework. What is excellent for you could be catastrophic for another person.

And, as always, make certain to establish credit in the recommended order for the best, fastest benefits.

 

The post Business Credit Cards With Bad Personal Credit? They’re Not Out of Reach appeared first on Credit Suite.

How to Get Business Credit Cards No Personal Guarantee

Business credit cards, no personal guarantee, are an actual thing.  Not aren’t for everyone though. We are going to tell you who can get them, and what to do if you can’t. 

Decoding the Secret of Business Credit Cards, No Personal Guarantee Needed 

It sounds like an ancient myth doesn’t it?  The idea that you can get business credit cards, no personal guarantee necessary?  The truth is, unlike the fountain of youth and the lost city of gold, these creatures do exist.  They are rare however, and it takes a seasoned business explorer to land one. What does it take to capture the rare beasts that are business credit cards no personal guarantee?  What kind of businesses are they meant for? How can you get one? We answer all of these questions and more. 

Why Are Business Credit Cards No Personal Guarantee So Rare?

The reason why these cards are so rare is that a lack of personal guarantee is risky to the lender.  Typically, a business needs to have $1 million to $4 million in revenue annually to qualify. In addition, there is a minimum annual charging requirement for most of these cards of $250,000 to $1 million.  Many also require there to be at least 15 cardholders. If you are a new, smaller business such as one just starting to grow out of your home, you will not qualify.

Check out how our reliable process will help your business get the best business credit cards.

Even if you do meet these qualifications, there are not a ton of options for business credit cards no personal guarantee. One reason for this is that virtually all lenders consider the finances of the business and it’s owners to be tightly interwoven. They aren’t necessarily wrong either.  According to the SBA: 

  • 8% of start-ups use personal credit cards for financing, versus just 2% using business credit cards.
  • One-third of businesses fail within two years, and half don’t make it five years.
  • Personal savings are the top source of start-up capital, used by nearly 6 in 10 companies.

The issue then becomes one of trust and stability, creditworthiness if you will, between the card issuer and the business.  The credit card company just wants to get paid. If they can have a personal guarantee, they feel some level of security. How can a business accomplish the level of creditworthiness necessary to get business credit cards, no personal guarantee needed?

Develop a Relationship, or Use One You Already Have

If you are already with a bank that offers a credit card and you have handled your business with them well, you may be able to negotiate for business credit cards, no personal guarantee.  This could be true even if you do not meet the standard qualifications typical for this type of card.  

It’s not a given, but if your relationship is long and proves extreme creditworthiness with no overdrawn accounts or late payments, you have a chance. The bank just has to be able to see that they can trust you.

Wait Until You Meet the Revenue and Size Banks Want

Those businesses that meet the revenue and size requirements are not guaranteed to get business credit cards no personal guarantee, but they certainly have a better shot than those that do not.  Another thing that can help is having several years in business. If you beat the odds and stay in business 5 years or more, your chances are even better.  

The thing is, these cards are most often are from specific stores.  You can usually use them only at those stores. That means that even if you are able to get business credit cards no personal guarantee, your spending options may be severely limited. 

Regardless, these types of cards are few and far between.  However, they do exist. 

Here are a Few Business Credit Cards, No Personal Guarantee

We list a few of the ones that are out there, what they offer, and what they require for approval below. 

Brex Corporate Card

This card is a stand out.  It isn’t connected to a specific retailer so it is much more flexible than other business credit cards no personal guarantee.  In addition, you can earn rewards! Specifically, you can earn one point per dollar on purchases. You can also get credits and discounts on certain services . 

Check out how our reliable process will help your business get the best business credit cards.

One condition is that you have to pay the balance in full each month.  It isn’t revolving credit in the traditional sense. You cannot carry a balance. 

Even though they do not require a personal guarantee, Brex knows exactly what it is looking for in a cardholder. They want innovative businesses that use modern technology. In addition, they want to see a healthy business specific bank account.  It is best if it maintains a balance of $100,000 or more.  

The Brex Corporate Card has no annual fee.  It also offers other reward levels based on the type of spending, in addition to the 1 point per dollar spent on regular purchases.  These include: 

  • 7x points on taxis and ridesharing services
  • 4x points on flights, AirBnbs, and hotels when you book with Brex
  • 2x points on software purchases that are recurring

There is an introductory offer of 30,000 bonus points and card fees waived for life after approval. Other perks include credit for ZenDesk and Amazon Web Services.  There are discounts on WeWork and Salesforce also.

In addition to a business bank account with $100,000 balance, they also want you to have an EIN.

Bremer Bank Visa Signature Business Company Card

The Bremer Bank Visa Signature Business Company Card is an actual business credit card, no personal guarantee necessary.  It also has high income requirements and still prefers to work with medium to large businesses.  If you are able to get one, you will enjoy no annual fee and a rewards program. 

To qualify, you must have at least $1,000,000 in annual revenue and $350,000 in net annual income for the previous two years. 

business credit card no PG Credit Suite

Shell Small Business Card

The Shell Small Business Card is only good at Shell gas stations, and it offers no rewards.  The best thing about it other than it being one of the few business credit cards, no personal guarantee required, is that it can be a nice tool for employees on the road a lot.  It offers options such as purchase limits and specific station limitations.  There is no annual fee, but cardholders have to be associated with a government entity, nonprofit, or earn at least $1 million annually for the past 3 years. 

Sam’s Club Business Mastercard

Surprisingly, the Sam’s Club Business Mastercard is one of the more flexible options for business credit cards no personal guarantee.  You are not limited to using it only at Sam’s Club. In fact, you can use it anywhere they accept Mastercard.  It also offers great rewards on gas, dining, and travel.  

There is no annual fee, but you do have to have a Sam’s Club membership.  Currently you get a $20 statement credit if you spend $50 or more at Sam’s Club the same day you open the card.  Rewards include 5% cash back on gas up to $6,000 in a year. After that, you get 1%. There is also a 3% cash back on dining and travel rewards, and 1% on all other purchases.  

To get this card, the business must make $5 million or more per year.  It also must be in business for at least 2 years and have more than 10 employees for there to be no personal guarantee requirement. 

Office Depot OfficeMax Business Credit Account

Similar to the Shell card mentioned above, the Office Depot OfficeMax Business Credit Account is not known for its flexibility.  It is only good at Office Depot stores, officedepot.com, and OfficeMax.  They do not offer rewards, but there is an introductory bonus. If you spend at least $150 in the first 60 days after opening the account you get a $50 statement credit. 

To qualify for this card, your business must be at least three years old with over $5 million in sales annually. 

A Personal Guarantee Does Not Mean a Hit on Your Personal Credit

It is important to remember that just because a credit card requires a personal guarantee, it doesn’t necessarily affect your personal credit.  While strong business credit may not get you out of a personal guarantee, it can help protect your personal credit report.

Many cards will only do a soft pull on your personal credit, and then they will report your payment activity to your business credit.  For this to happen however, you have to have established business credit. That doesn’t happen automatically.

What if You Do not Qualify for Business Credit Cards with No Personal Guarantee? 

The truth is, if you are a small business, it is very unlikely you are going to qualify for small business credit cards no personal guarantee.  This means that you are going to have some personal liability for your business debt. There are ways to protect yourself however, both when it comes to liability for business debts and personal credit. 

For example, if you formally incorporate as a corporation, S-corp, or LLC, you will significantly increase your liability protection.  As luck would have it, this is also something that you need to do to begin to establish business credit separate from your personal credit.  

Another thing you need to do to establish business credit is get and EIN and set up a dedicated business bank account.  Since most business credit cards like to see these things anyway, it’s a good idea to go ahead and get the ball rolling. 

Other Steps to Building Separate Business Credit

In addition to formally incorporating, getting and EIN, and having a separate business bank account, there are a few more things you need to do to separate your business from yourself and begin to build credit for your business separate from your personal credit. 

For example, your business needs contact information that is separate from your own. That means a business phone number and business address that are listed in the business directories.  You also need a dedicated business email address, and it needs to have the same URL as your website. It can’t be from a free service like Yahoo or Gmail. 

Speaking of a website, you definitely need one.  These days, if you do not have a website you basically do not exist.  However, it can’t be just thrown together. You need to have it professionally designed.  Also, pay for hosting. Free hosting services look unprofessional. 

Check out how our reliable process will help your business get the best business credit cards.

Then, head over to the Dun & Bradstreet website and get yourself a D-U-N-S number.  You have to have a D-U-N-S number to have a credit file with Dun & Bradstreet. Since they are the largest and most commonly used business credit reporting agency, you definitely need this number. 

How Do You Get Accounts to Report to Your Business Credit?

Okay, so here is the secret that few know.  It can seem virtually impossible to get credit accounts that will report to the business credit reporting agencies because, you have to have credit to get credit.  However, if you set up your business correctly, like noted above, you can open tradelines with vendors in the vendor credit tier. These are starter vendors that will give you net terms on invoices without checking either credit report.  Then, they will report your payments. If you apply with your business information, like your business phone number, address, and EIN instead of SSN, then they will be reporting to your business credit report. 

When you get enough of these types of accounts reporting, you will be able to apply for cards in the retail credit tier.  These are cards for stores Best Buy and Office Depot. Then, after enough of those are reporting, you will be able to apply for cards in the fleet credit tier.  This includes cars like Fuelman and WEX. Finally, after you have enough accounts reporting positive payment history to your business credit report, you will have strong enough business credit to apply for card in the cash credit tier. 

This are high limit, lower interest, awesome rewards cards that are not limited to specific retailers or types of expenses.  While they may still require a personal guarantee, if you follow the steps outlined, they will not affect your personal credit. 

Business Credit Cards, No Personal Guarantee:  They Do Exist, but They are Few and Far Between

Business credit cards, no personal guarantee required, do exist. However, they are rare, and they are not easy to get.  Realistically, it isn’t feasible for a small business to make finding these cards a goal. A more productive goal is to work to build strong business credit and to run your business on the merits of its own credit report. 

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