Credit Card for Small Businesses
Due to the growing difficulty in obtaining traditional business lines of credit from banks, many business owners are turning to using credit cards for small businesses as their primary unsecured business lines of credit.
Unfortunately, the majority is turning to the wrong sources and end up putting their personal credit on the line since all their business credit card debts are showing up on their personal credit reports.
This means that anytime you use your business credit cards, your personal debt/credit ratios are affected. Did you know that drawing a large portion of funds from these types of business credit cards can result in your personal credit scores (FICO®) dropping anywhere from 20-100 points overnight!
Some of the largest financial institutions offering a credit card for small business report to your personal credit which negatively impacts your scores.
Do the business credit cards you currently have report to your personal credit reports?
If so, you should definitely consider obtaining some true business credit cards that do not report, thereby sheltering your personal credit for personal necessities such as auto loans, mortgages, student loans, and personal credit cards.
Unsecured credit lines such as business credit cards have been around for a long, long time. They are no secret to the wealthy and the savvy business owners.
When properly structured they do not report to your personal credit reports. They can be an excellent cash flow tool as the monthly debt service is usually lower than almost any other form of financing. The rates are usually very good too – rates are usually between 3-7% above prime.
So where can you find business credit cards that do not report to personal credit?
Well, the good news is there are credit cards that only report to the business credit bureaus. The bad news is the credit card issuers for these types of cards do not advertise this fact.
First, while there are literally hundreds of credit cards for small businesses available in the marketplace, only a handful of major companies handle the issuance and servicing of all these consumer and business credit cards.
So when you see a financial institution launch a new credit card program with its own branded label in most cases it always includes a partnership with a leading agent credit card issuer to provide and service the actual credit card products to its customers.
The agent credit card issuer is the company that actually underwrites, issues, and services the credit card customer. As you may know, part of account servicing includes credit reporting.
You’ve really got 2 options. Your first option is that you could become a member of the Business Credit Insiders Circle. Our business credit building system will not only ensure that your business is lender compliant but also helps you separate and protect your personal credit from your business credit.
We know which lenders are lending, which ones report to only the business credit bureaus, and whether you and your business will be a good fit for them. We also know how to make sure you have the correct business credit application and credit profile before you apply for the best business credit cards.
Your second option is you can try to do it on your own. Do you know which lenders offer unsecured business credit without full income documentation? Do you know which ones do not report to your personal credit report? Do you know the number one reason why unsecured loan and credit line applications are denied? Do you know which bureaus are pulled by each lender so you can properly plan the series of applications?
These are just a few of the questions you should know how to answer. We do not charge any up-front fees when applying for our bundled business credit card packages so you’ll only pay our fees if we solve your problem.
Looking for business credit cards that do not report to personal credit? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free business credit building audio seminar ($597 value) =>
To Your Success In Business and in Life!
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About the author
Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the SBA.gov Community, About.com and All Business.com. His articles and blog; Business Credit Blogger.com, have been featured in ‘Fox Small Business’,’American Express Small Business’, ‘Business Week’, ‘The Washington Post’, ‘The New York Times’, ‘The San Francisco Tribune’,‘Alltop’, and ‘Entrepreneur Connect’.