Author Topic: Business Credit Card  (Read 6618 times)

Offline steve L

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Business Credit Card
« on: April 10, 2010, 10:10:31 PM »
is it true that applying for business credit cards dont hurt your credit score? and the same idea if you churn business credit cards( starwood) would it hurt your score? does the business card get reported to the credit company? thanks

Offline Yoel

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Re: Business Credit Card
« Reply #1 on: April 15, 2010, 11:17:46 PM »
Applying for a business card does have an impact on your credit score, as they check your credit report, however carrying a balance does not have any impact I believe.

Offline Yellow

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Re: Business Credit Card
« Reply #2 on: April 16, 2010, 02:26:26 AM »
So if i'm not mistaken, this would mean that technically, if someone wanted, they can open a business card from starwood, citi advantage, capital one, coninental, etc etc with all the carriers, receive the bonus, close down the CC and then never have to worry about your Credit Score??
That would be so cool 

Offline Daniel

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Re: Business Credit Card
« Reply #3 on: April 18, 2010, 01:45:21 AM »
I can't believe I never noticed this. Just checked me credit report and I don't see any record of the 4-5 business CC's I have open now. The inquiries are there, but if I were to close them, I'm sure nothing would happen- so cool! So I guess it's best to churn Business cards, in light of the difficulty in consolidating credit lines and having to close cards instead.

Offline steve L

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Re: Business Credit Card
« Reply #4 on: April 18, 2010, 10:43:32 PM »
what do you u mean i n light of credit lines and closing down credit cards?

Offline Daniel

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Re: Business Credit Card
« Reply #5 on: April 19, 2010, 06:45:30 AM »
what do you u mean i n light of credit lines and closing down credit cards?

I mean in light of the fact that it has been increasingly hard to transfer the credit line from the card you want to close on to another newer card or an old card without an annual fee. This used to be the regular practice of churners. But now that it has become difficult, I was suggesting focusing churning efforts on business cards that you can close out without any effect on your credit, albeit you won't have the benefit of more unused credit and you will have the slight ding to your credit due to the inquiry.

Offline Dan

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Re: Business Credit Card
« Reply #6 on: April 19, 2010, 08:40:40 AM »
As long as you still have a lot of credit out there, I've found the effect of churning to be negligible.
For example if you'll still have 50,000 in total credit between your other cards and you only use a few thousand a month then you shouldn't worry about the effect of closing other cards down.
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Offline Daniel

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Re: Business Credit Card
« Reply #7 on: April 20, 2010, 06:55:23 AM »
As long as you still have a lot of credit out there, I've found the effect of churning to be negligible.
For example if you'll still have 50,000 in total credit between your other cards and you only use a few thousand a month then you shouldn't worry about the effect of closing other cards down.

If you have 50,000 in total credit and close a card with a 1-5k limit, it's no big deal. But when Chase gives you a new CL of 20k for the United card, I can't just close that down without hurting my credit. I guess it's good to be given low CL's with cards you plan on closing anyways, unless there is a spending bonus that you want to get.

Offline gozalim

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Re: Business Credit Card
« Reply #8 on: April 20, 2010, 11:04:45 PM »
If you have 50,000 in total credit and close a card with a 1-5k limit, it's no big deal. But when Chase gives you a new CL of 20k for the United card, I can't just close that down without hurting my credit. I guess it's good to be given low CL's with cards you plan on closing anyways, unless there is a spending bonus that you want to get.

why not just do a product change/downgrade (at years end) to a fee-free chase card?

Offline Daniel

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Re: Business Credit Card
« Reply #9 on: April 21, 2010, 02:43:47 PM »
why not just do a product change/downgrade (at years end) to a fee-free chase card?

I mentioned that, but you can only have so many of those....

Offline txtmax4

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Re: Business Credit Card
« Reply #10 on: July 16, 2010, 07:59:00 PM »
A few points here:

1) The ONLY thing that affects your credit with a BIZ card is the initial credit inquiry.

2) Besides for the debt/credit ratio, another thing that can affect your credit when you close down (personal) cards is lowering your average credit age. Closing down Citi AA cards will not affect your debt/credit ratio as they don't report your credit limit, it shows up at $0

3) One way to avoid closing (some of the) cards is requesting that they convert the account into a "no annual fee" type, which might give you (for instance) half a point per dollar spent or something like that (hey, but at least you get to keep the account open!)

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Offline Yordai Dooma

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Re: Business Credit Card
« Reply #11 on: July 16, 2010, 08:13:00 PM »
A few points here:

1) The ONLY thing that affects your credit with a BIZ card is the initial credit inquiry.

2) Besides for the debt/credit ratio, another thing that can affect your credit when you close down (personal) cards is lowering your average credit age. Closing down Citi AA cards will not affect your debt/credit ratio as they don't report your credit limit, it shows up at $0

3) One way to avoid closing (some of the) cards is requesting that they convert the account into a "no annual fee" type, which might give you (for instance) half a point per dollar spent or something like that (hey, but at least you get to keep the account open!)



Thanks for summarizing the above 9 posts. In point #2 you mentioned the personal card. I think we "were" (as in 3 months ago) discussing business cards...

Offline Chaikel

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Re: Business Credit Card
« Reply #12 on: July 17, 2010, 02:47:20 PM »
Closing down Citi AA cards will not affect your debt/credit ratio as they don't report your credit limit, it shows up at $0
Incidentally, before I knew that, I contested the $0 limit with the actual one. It was changed on my report. Has it's pluses and minuses
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Offline txtmax4

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Re: Business Credit Card
« Reply #13 on: July 18, 2010, 12:59:15 AM »
Thanks for summarizing the above 9 posts. In point #2 you mentioned the personal card. I think we "were" (as in 3 months ago) discussing business cards...

Actually... Daniel's and Dan's posts refer to personal cards if you look into it...
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Offline Yordai Dooma

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Re: Business Credit Card
« Reply #14 on: July 18, 2010, 10:43:02 PM »
Actually... Daniel's and Dan's posts refer to personal cards if you look into it...

Oh. Thanks. I'm looking into it. lol.

Thats why there is the quote feature so we can know who you are responding to. But thanks again for the summary

Offline deals

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Re: Business Credit Card
« Reply #15 on: July 19, 2010, 12:13:48 PM »
if i open a business credit card do they ask any proof of the business or i could just make up a business

Offline txtmax4

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Re: Business Credit Card
« Reply #16 on: July 19, 2010, 12:29:08 PM »
You can make up.
Best is, just fill in your name in the "business name" field.
And use your SSN as your Tax-ID #.
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Offline Yordai Dooma

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Re: Business Credit Card
« Reply #17 on: July 19, 2010, 12:31:16 PM »
You can make up.
Best is, just fill in your name in the "business name" field.
And use your SSN as your Tax-ID #.

I just leave the Fed ID field blank every time, If im ever asked about my business, i just say i sell things on ebay etc...

Offline Saver2000

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Re: Business Credit Card
« Reply #18 on: September 08, 2011, 04:17:48 PM »
You can make up.
Best is, just fill in your name in the "business name" field.
And use your SSN as your Tax-ID #.

If they only have your sss # and not your tax id/ein, it still wont show up on your personal cr?

Offline DovidR

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Re: Business Credit Card
« Reply #19 on: September 15, 2011, 09:25:26 PM »
I applied for a Citi business card and told them my business is "Great Tutoring". They sent me an email asking me to call them. They want proof of address of the business, such as a utility bill or a bank statement with my business name on it. I told them it's a sole proprietorship and my business and personal is all mixed. They still want to see something.

What's the fastest, cheapest, and easiest thing I can set up and give them?