You can get business credit cards that do not report to personal credit. This is the case despite what’s going on with the novel coronavirus.
How to Establish Separate Business Credit: Get Business Credit Cards That Do Not Report to Personal Credit
What do you know about how to establish separate business credit? Business credit cards that do not report to personal credit are not out of reach. We know the secrets!
Remember that any inquiries into your consumer credit score will negatively impact that score. And a lot of merchants and lenders will carry out inquiries when working with you for the first time. Separate business credit means you keep business credit card inquiries from affecting your consumer credit.
COVID-19 and Recession Era Financing
As the novel coronavirus continues to
How to Establish Separate Business Credit: Get a D&B D-U-N-S number
Start at the D&B website and obtain a cost-free D-U-N-S number. A D-U-N-S number is how D&B gets a small business in their system, to generate a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.
Once in D&B’s system, search Equifax and Experian’s sites for the business. You can do this at https://www.creditsuite.com/reports/. If there is a record with them, check it for accuracy and completeness. If there are no records with them, go to the next step in the process.
This way, Experian and Equifax will have activity to report on.
How to Establish Separate Business Credit: File a DBA
If you operate a small business as a sole proprietor, then at the very least be sure to file for DBA (‘doing business as’) status.
If you do not, then your personal name is the same as the small business name. Because of this, you can find yourself being personally liable for all small business financial obligations.
Also, according to the Internal Revenue Service, with this structure there is a 1 in 7 possibility of an IRS audit. There is a 1 in 50 chance for corporations! Steer clear of confusion and significantly reduce the odds of an Internal Revenue Service audit as well.
And who would not want that?
But keep in mind – don’t treat a DBA filing as anything beyond a steppingstone to incorporating.
How to Establish Separate Business Credit: Go Beyond a DBA and Make Your Small Business a Distinct Legal Entity through Incorporation
Meet with your tax consultant or financial planner. And together, pick which legal entity (sole proprietor, LLC or S-Corp) will most effectively fit your company and particular financial circumstances.
Incorporation can also help to secure your personal assets. That is in the event of a lawsuit. Once your corporation or LLC is registered on your state’s Secretary of State’s website, you can then get a Business Federal Tax ID Number. So then you can open your business’s bank account.
How to Establish Separate Business Credit: Get an EIN
Visit the IRS website and get an EIN for the company. They’re free of charge. Pick a business entity such as corporation, LLC, etc.
A small business may get started as a sole proprietor. But they absolutely need to change to a variety of corporation or an LLC.
This is to diminish risk. And it will make best use of tax benefits.
A business entity matters when it comes to taxes and liability in case of litigation. A sole proprietorship means the entrepreneur is it when it comes to liability and taxes. Nobody else is responsible.
The best thing to do is to incorporate. You should only look at a DBA as an interim step on the way to incorporation.
How to Establish Separate Business Credit: Company Legitimacy
A small business must be reputable to lending institutions and merchants. That is why, a small business will need a professional-looking website and email address, with website hosting bought from a merchant such as GoDaddy.
And company phone numbers must have a listing on ListYourself.net.
At the same time the company telephone number should be toll-free (800 exchange or similar).
A corporation will also need a bank account dedicated strictly to it, and it must have all of the licenses essential for operation. These licenses all have to be in the accurate, accurate name of the company, with the same small business address and phone numbers.
So note that this means not just state licenses, but potentially also city licenses.
Find out why so many companies are using our proven methods to improve their business credit scores, even during a recession.
How to Establish Separate Business Credit: Build Business Credit
Business helps to protect a business owner’s personal assets, in the event of court action or business bankruptcy. Also, with two separate credit scores, an entrepreneur can get two separate cards from the same merchant. This effectively doubles purchasing power.
Another advantage is that even startup companies can do this. Going to a bank for a business loan can be a recipe for disappointment. But building small business credit, when done correctly, is a plan for success.
Consumer credit scores depend on payments but also additional components like credit utilization percentages. But for company credit, the scores truly only hinge on whether a company pays its debts in a timely manner.
Business credit is an asset which can help your business for years to come.
Growing small business credit is a process, and it does not happen automatically. A small business has to actively work to develop business credit. However, it can be done easily and quickly, and it is much quicker than developing individual credit scores.
Merchants are a big aspect of this process.
Doing the steps out of sequence will lead to repetitive denials. Nobody can start at the top with small business credit. For instance, you can’t start with store or cash credit from your bank. If you do you’ll get a rejection 100% of the time.
Starter Vendor Credit
First you need to establish tradelines that report. Then you’ll have an established credit profile, and you’ll get a business credit score.
And with an established business credit profile and score you can begin to get credit for numerous purposes, and from all sorts of places.
These varieties of accounts tend to be for things bought all the time, like marketing materials, shipping boxes, outdoor workwear, ink and toner, and office furniture.
But first of all, what is trade credit? These trade lines are credit issuers who give you starter credit when you have none now. Terms are oftentimes Net 30, versus revolving.
Therefore, if you get an approval for $1,000 in vendor credit and use all of it, you must pay that money back in a set term, such as within 30 days on a Net 30 account.
Net 30 accounts need to be paid in full within 30 days. 60 accounts have to be paid in full within 60 days. In comparison with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you made use of.
To start your business credit profile the right way, you should get approval for vendor accounts that report to the business credit reporting agencies. As soon as that’s done, you can then use the credit.
Then repay what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.
Vendor Credit – It Helps
Not every vendor can help like true starter credit can. These are vendors that grant approval with negligible effort. You also need them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.
Here are some stellar choices from us: https://www.creditsuite.com/blog/5-vendor-accounts-that-build-your-business-credit/
Uline is a true starter vendor. You can find them online at www.uline.com. They sell shipping, packing, and industrial supplies, and they report to Dun & Bradstreet and Experian. You MUST have a D-U-N-S number and an EIN before starting with them. They will ask for your company bank information. Your company address must be uniform everywhere. You need for an order to be $50 or more before they’ll report it. Your first few orders may need to be prepaid initially so your company can get approval for Net 30 terms.
- How to apply with them:
- Add an item to your shopping cart
- Go to checkout
- Select to Open an Account
- Select to be invoiced
Crown Office Supplies
Crown Office Supplies is another true starter vendor. You can find them online at https://crownofficesupplies.com. They sell a variety of office supplies and take helping clients seriously. They say, “just starting your business, or maybe have an existing business, but you have a question regarding office supplies… we are here to help!” And they report to Dun and Bradstreet, Experian, and Equifax.
There is a $99.00 yearly fee, though they do report that fee to the business credit reporting agencies. For other purchases to report, the purchase must be at least $30.00. Terms are Net 30.
- Here’s how to qualify:
- Your corporate entity must be in good standing with the applicable Secretary of State
- You must have an EIN and a D-U-N-S number
- Business address (it has to match everywhere)
- Business license (if applicable)
- A corporate bank account
- Corporation must be at least 60 days old
- Membership fee is $99 annually upon approval
Grainger Industrial Supply
Grainger Industrial Supply is also a true starter vendor. You can find them online at www.grainger.com. They sell hardware, power tools, pumps and more. They also do fleet maintenance. And they report to D&B. You need a business license, EIN, and a D-U-N-S number.
- To qualify, you need the following:
- A business license (if applicable)
- An EIN number
- A company address matching everywhere
- A company bank account
- A D-U-N-S number from Dun & Bradstreet
Your corporate entity must be in good standing with the applicable Secretary of State. If your company does not have established credit, they will require additional documents. So, these are items like accounts payable, income statement, balance sheets, and the like.
Apply online or over the phone.
Store credit comes from a variety of retail service providers.
You must use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use the small business’s EIN on these credit applications.
Fleet credit is from businesses where you can purchase fuel, and fix and take care of vehicles. You must use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the company’s EIN.
These are companies such as Visa and MasterCard. You must use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.
These are often MasterCard credit cards.
Accounts That Don’t Report
Non-reporting trade accounts can also be helpful. While you do want trade accounts to report to at least one of the CRAs, a trade account which does not report can also be of some worth.
You can always ask non-reporting accounts for trade references. Plus, credit accounts of any sort should help you to better even out business expenditures, consequently making financial planning less complicated.
More of How to Establish Separate Business Credit: Monitor Your Business Credit
Know what is happening with your credit. Make sure it is being reported and attend to any mistakes ASAP. Get in the habit of taking a look at credit reports. Dig into the particulars, not just the scores.
We can help you monitor business credit at Experian and D&B for a lot less than it would cost you at the CRAs. At Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business.
Update Your Records
Update the data if there are errors or the data is incomplete. At D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm. For Experian, go here: www.experian.com/small-business/business-credit-information.jsp. So, for Equifax, go here: www.equifax.com/business/small-business.
Fix Your Business Credit
So, what’s all this monitoring for? It’s to dispute any errors in your records. Errors in your credit report(s) can be taken care of. But the CRAs usually want you to dispute in a particular way.
Get your small business’s PAYDEX report at: www.dnb.com/about-us/our-data.html. Get your company’s Experian report at: www.businesscreditfacts.com/pdp.aspx?pg=SearchForm. And get your Equifax business credit report at: www.equifax.com/business/credit-information.
Disputing credit report mistakes generally means you mail a paper letter with duplicates of any evidence of payment with it. These are documents like receipts and cancelled checks. Never mail the original copies. Always mail copies and retain the original copies.
Fixing credit report mistakes also means you specifically itemize any charges you dispute. Make your dispute letter as crystal clear as possible. Be specific about the problems with your report. Use certified mail to have proof that you mailed in your dispute.
Dispute your or your business’s Equifax report by following the instructions here: www.equifax.com/small-business-faqs/#Dispute-FAQs.
You can dispute errors on your or your company’s Experian report by following the directions here: www.experian.com/small-business/business-credit-information.jsp.
And D&B’s PAYDEX Customer Service contact number is here: www.dandb.com/glossary/paydex.
A Word about Business Credit Building
Always use credit sensibly! Don’t borrow more than what you can pay off. Track balances and deadlines for payments. Paying on time and fully will do more to increase business credit scores than nearly anything else.
Building company credit pays off. Excellent business credit scores help a small business get loans. Your loan provider knows the small business can pay its financial obligations. They know the business is bona fide.
The company’s EIN links to high scores and lenders won’t feel the need to call for a personal guarantee.
Find out why so many companies are using our proven methods to improve their business credit scores, even during a recession.
How to Establish Separate Business Credit: Check Out Some of Our Favorite Credit Cards
Perks vary. So make sure to choose the perk you prefer from this range of options.
Secure Business Credit Cards for Fair Credit Scores
Capital One® Spark® Classic for Business
Have a look at the Capital One® Spark® Classic for Business. It has no yearly fee. There is no introductory APR offer. The regular APR is a variable 24.49%. You can get unlimited 1% cash back on every purchase for your company, with no minimum to redeem.
While this card is within reach if you have fair credit, beware of the APR. Yet if you can pay promptly, and completely, then it’s a bargain.
Business Credit Cards for Extravagant Travel Points
Flat-rate Travel Rewards
Capital One® Spark® Miles for Business
Have a look at the Capital One® Spark® Miles for Business. It has an introductory yearly fee of $0 for the first year, which then rises to $95. The regular APR is 18.49%, variable due to the prime rate. There is no introductory annual percentage rate. Pay no transfer fees. Late fees go up to $39.
This card is excellent for travel if your expenses don’t fall under basic bonus categories. You can get unlimited double miles on all purchases, without any limits. Earn 5x miles on rental cars and hotels if you book through Capital One Travel.
Get an initial bonus of 50,000 miles. That’s the same as $500 in travel. But you only get it if you spend $4,500 in the initial 3 months from account opening. There is no foreign transaction fee. You will need a great to outstanding FICO rating to qualify.
Bonus Travel Categories with a Sign-Up Offer
Ink Business Preferred℠ Credit Card
For a wonderful sign-up offer and bonus categories, have a look at the Ink Business Preferred℠ Credit Card.
Pay an annual fee of $95. Regular APR is 17.49 – 22.49%, variable. There is no introductory APR offer.
Get 100,000 bonus points after spending $15,000 in the first three months after account opening. This works out to $1,250 toward travel rewards if you redeem with Chase Ultimate Rewards.
Get 3 points per dollar of the initial $150,000 you spend with this card. So this is for purchases on travel, shipping, internet, cable, and phone services. Plus it includes advertising purchases made with social media sites and search engines each account anniversary year.
You can get 25% more in travel redemption when you redeem for travel via Chase Ultimate Rewards. You will need a good to outstanding FICO score to qualify.
No Annual Fee
Bank of America® Business Advantage Travel Rewards World MasterCard® credit card
For no yearly fee while still getting travel rewards, check out this card from Bank of America. It has no annual fee and a 0% introductory APR for purchases during the initial 9 billing cycles. Afterwards, its regular APR is 13.74 – 23.74% variable.
You can earn 30,000 bonus points when you make a minimum of $3,000 in net purchases. So this is within 90 days of your account opening. You can redeem these points for a $300 statement credit towards travel purchases.
Earn unlimited 1.5 points for every $1 you spend on all purchases, everywhere, every time. And this is no matter how much you spend.
Likewise get 3 points per every dollar spent when you book your travel (car, hotel, airline) through the Bank of America® Travel Center. There is no limit to the number of points you can get and points don’t expire.
You will need superb credit to get this one (as in, 700s or better).
Hotel Credit Card
Marriott Bonvoy Business™ American Express® Card
Take a look at the Marriott Bonvoy Business™ Card from American Express. It has an annual fee of $125. There is no introductory APR offer. The regular APR is a variable 17.24 – 26.24%. You will need good to outstanding credit scores to get this card.
You can earn 75,000 Marriott Bonvoy points after using your card to make purchases of $3,000 in the initial three months. Get 6x the points for eligible purchases at participating Marriott Bonvoy hotels. You can get 4x the points at United States restaurants and filling stations. And you can get 4x the points on wireless telephone services bought directly from American service providers and on American purchases for shipping.
Get double points on all other eligible purchases.
Also, you get a free night every year after your card anniversary. And you can earn another free night after you spend $60,000 on your card in a calendar year.
You get Marriott Bonvoy Silver Elite status with your Card. Plus, spend $35,000 on eligible purchases in a calendar year and get an upgrade to Marriott Bonvoy Gold Elite status through the end of the next calendar year.
Plus, each calendar year you can get credit for 15 nights towards the next level of Marriott Bonvoy Elite status.
Dependable Credit Cards for Fair to Poor Credit, Not Needing a Personal Guarantee
Brex Card for Startups
Take a look at the Brex Card for Startups. It has no annual fee.
You will not need to supply your Social Security number to apply. And you will not need to supply a personal guarantee. They will take your EIN.
Nevertheless, they do not accept every industry.
Additionally, there are some industries they will not work with, as well as others where they want more paperwork. For a list, go here: https://brex.com/legal/prohibited_activities/.
To determine creditworthiness, Brex checks a corporation’s cash balance, spending patterns, and investors.
You can get 7x points on rideshare. Get 4x on Brex Travel. Also, get triple points on restaurants. And get double points on recurring software payments. Get 1x points on everything else.
You can have bad credit (even a 300 FICO) to qualify.
Find it here: https://brex.com/lp/startups-higher-limits/
Find out why so many companies are using our proven methods to improve their business credit scores, even during a recession.
Flexible Financing Credit Cards – Take A Look at Your Alternatives!
The Plum Card® from American Express
Have a look at the Plum Card® from American Express. It has an initial yearly fee of $0 for the first year. Afterwards, pay $250 annually.
Get a 1.5% early pay discount cash back bonus when you pay within 10 days. You can take up to 60 days to pay without interest when you pay the minimum due by the payment due date.
You will need excellent to excellent credit to qualify.
Unbeatable Cards for Jackpot Rewards That Never Expire
Capital One® Spark® Cash Select for Business
Check out the Capital One® Spark® Cash Select for Business. It has no yearly fee. You can get 1.5% cash back on every purchase. There is no limit on the cash back you can earn. And earn a one-time $200 cash bonus once you spend $3,000 on purchases in the initial three months. Rewards never expire.
Pay a 0% introductory APR for 9 months. Then pay 14.49% – 22.49% variable APR after that.
You will need good to superb credit to qualify.
Exceptional Business Credit Cards with No Annual Fee
No Annual Fee/Flat Rate Cash Back
Ink Business Unlimited℠ Credit Card
Have a look at the Ink Business Unlimited℠ Credit Card. Past no annual fee, get an introductory 0% APR for the first 12 months. After that, the APR is a variable 14.74 – 20.74%.
You can earn unlimited 1.5% Cash Back rewards on every purchase made for your corporation. And get $500 bonus cash back after spending $3,000 in the first 3 months from account opening. You can redeem your rewards for cash back, gift cards, travel and more using Chase Ultimate Rewards®. You will need superb credit to receive this card.
Company Credit Cards with a 0% Introductory APR – Pay Zero!
Blue Business® Plus Credit Card from American Express
Check out the Blue Business® Plus Credit Card from American Express. It has no yearly fee. There is a 0% introductory APR for the first year. After that, the APR is a variable 14.74 – 20.74%.
Get double Membership Rewards® points on day to day company purchases like office supplies or client suppers for the first $50,000 spent per year. Get 1 point per dollar afterwards.
You will need good to exceptional credit to qualify.
American Express® Blue Business Cash Card
Also check out the American Express® Blue Business Cash Card. Keep in mind: the American Express® Blue Business Cash Card is identical to the Blue Business® Plus Credit Card from American Express. However its rewards are in cash instead of points.
Get 2% cash back on all qualified purchases on up to $50,000 per calendar year. After that get 1%.
It has no yearly fee. There is a 0% introductory APR for the first year. After that, the APR is a variable 14.74 – 20.74%.
You will need good to excellent credit scores to qualify.
Terrific Cards for Cash Back
Capital One ® Spark® Cash for Business
Take a look at the Capital One® Spark® Cash for Business. It has an introductory $0 annual fee for the initial year. Afterwards, this card costs $95 annually. There is no introductory APR deal. The regular APR is a variable 18.49%.
You can get a $500 one-time cash bonus after spending $4,000 in the initial 3 months from account opening. Get unlimited 2% cash back. Redeem any time without any minimums.
You will need good to outstanding credit scores to qualify.
Flat-Rate Rewards and No Yearly Fee
Discover it® Business Card
Have a look at the Discover it® Business Card. It has no yearly fee. There is an introductory APR of 0% on purchases for one year. Then the regular APR is a variable 14.49 – 22.49%.
Get unlimited 1.5% cash back on all purchases, with no category restrictions or bonuses. They double the 1.5% Cashback Match™ at the end of the first year. There is no minimum spend requirement.
You can download transactions| quickly to Quicken, QuickBooks, and Excel. Note: you will need good to outstanding credit scores to receive this card.
Ink Business Cash℠ Credit Card
Check out the Ink Business Cash℠ Credit Card. It has no yearly fee. There is a 0% introductory APR for the initial year. After that, the APR is a variable 14.74 – 20.74%. You can get a $500 one-time cash bonus after spending $3,000 in the first three months from account opening.
You can earn 5% cash back on the initial $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services each account anniversary year.
Get 2% cash back on the initial $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases. There is no limitation to the amount you can get.
You will need excellent credit scores to qualify for this card.
Boosted Cash Back Categories
Bank of America® Business Advantage Cash Rewards MasterCard® credit card
Have a look at the Bank of America® Business Advantage Cash Rewards MasterCard® credit card. Get an 0% introductory APR for the initial 9 billing cycles of the account. Afterwards, the APR is 13.74% – 23.74% variable. There is no yearly fee. You can get a $300 statement credit offer.
Get 3% cash back in the category of your choice. So these are filling stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services. Get 2% cash back on dining. So this is for the initial $50,000 in combined choice category/dining purchases each calendar year. Then earn 1% after, with no limits.
You will need exceptional credit scores to qualify.
Find it here: https://promo.bankofamerica.com/smallbusinesscards2/
The Perfect Business Credit Cards for You
Your perfect business credit cards are dependent on your credit history and scores.
Only you can determine which advantages you want and need. So be sure to do your research. What is excellent for you could be disastrous for someone else.
And, as always, make sure to build credit in the recommended order for the best, fastest benefits.
How to Establish Separate Business Credit: Takeaways
Bolster the professionalism of your company and learn how to establish separate business credit.
You can get business credit cards that do not report to personal credit. Learn more here and get started in getting business credit cards that do not report to personal credit. The COVID-19 situation will not last forever.
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