Comments on: Applying for a Business Credit Card http://www.fivecentnickel.com/2007/02/14/applying-for-a-business-credit-card/ personal finance tips, tricks, and commentary Sun, 22 Nov 2009 04:49:32 -0500 http://wordpress.org/?v=abc hourly 1 By: YeOleImposter @ DogberryPatch http://www.fivecentnickel.com/2007/02/14/applying-for-a-business-credit-card/comment-page-1/#comment-68958 YeOleImposter @ DogberryPatch Sun, 04 Mar 2007 00:28:51 +0000 http://www.fivecentnickel.com/2007/02/14/applying-for-a-business-credit-card/#comment-68958 Jeremy, thanks for the info. I did not know that it would 'move over' to the personal line of credit. I have a business card that is 'applied for' using my name and credit - and now I will keep a closer eye on it. Jeremy, thanks for the info. I did not know that it would ‘move over’ to the personal line of credit. I have a business card that is ‘applied for’ using my name and credit – and now I will keep a closer eye on it.

]]> By: Jeremy http://www.fivecentnickel.com/2007/02/14/applying-for-a-business-credit-card/comment-page-1/#comment-68835 Jeremy Thu, 01 Mar 2007 14:44:48 +0000 http://www.fivecentnickel.com/2007/02/14/applying-for-a-business-credit-card/#comment-68835 Not that you would have a problem with making payments on time, but be careful with your "business" card. When you are current and nothing is wrong with your credit with them, your card is treated like a separate entity. But the moment you slip up and make a late payment or miss a payment, the personal guarantee you agreed to when signing up for the business card will make this line go on your personal record. I had problems with this in the past. Mine was even a full blown corporation and I got a business card with the corporate EIN. I had assumed it was all going towards the business credit and not my own. Anyway, business got tough and the company couldn't make a couple full payments and before you know it this account was showing up on my personal credit report and severely impacted my credit. Beyond that the business did need to close and I was personally responsible for a large chunk of debt. I know in your situation this won't likely apply, but just a warning to people about the true workings of a business credit card. 99.9% of business cards you apply for are basically personal cards that will use your business tax ID until you mess up, which then revert to you thanks to the personal guarantee you agreed to when signing up (it is in the very fine print). Obtaining true business credit without a personal guarantee can take a few years of building actual business credit that is reported to agencies such as Dun & Bradstreet before a credit card company will ever consider lending to you without the guarantee. So for anyone considering getting business credit, just be careful and treat it like personal debt and you'll be fine. Don't assume that a late business payment won't affect you because it is a business card :) Not that you would have a problem with making payments on time, but be careful with your “business” card. When you are current and nothing is wrong with your credit with them, your card is treated like a separate entity.

But the moment you slip up and make a late payment or miss a payment, the personal guarantee you agreed to when signing up for the business card will make this line go on your personal record.

I had problems with this in the past. Mine was even a full blown corporation and I got a business card with the corporate EIN. I had assumed it was all going towards the business credit and not my own.

Anyway, business got tough and the company couldn’t make a couple full payments and before you know it this account was showing up on my personal credit report and severely impacted my credit. Beyond that the business did need to close and I was personally responsible for a large chunk of debt.

I know in your situation this won’t likely apply, but just a warning to people about the true workings of a business credit card. 99.9% of business cards you apply for are basically personal cards that will use your business tax ID until you mess up, which then revert to you thanks to the personal guarantee you agreed to when signing up (it is in the very fine print).

Obtaining true business credit without a personal guarantee can take a few years of building actual business credit that is reported to agencies such as Dun & Bradstreet before a credit card company will ever consider lending to you without the guarantee.

So for anyone considering getting business credit, just be careful and treat it like personal debt and you’ll be fine. Don’t assume that a late business payment won’t affect you because it is a business card :)

]]> By: my wealth journey http://www.fivecentnickel.com/2007/02/14/applying-for-a-business-credit-card/comment-page-1/#comment-68005 my wealth journey Sun, 18 Feb 2007 02:51:14 +0000 http://www.fivecentnickel.com/2007/02/14/applying-for-a-business-credit-card/#comment-68005 This is the strategy I use for my business. It is really easy to just charge everything on the one card and maybe once a month, just import the expenses in quickbooks to record. p.s. great blog, i just started mine and hope it can be half as good! This is the strategy I use for my business. It is really easy to just charge everything on the one card and maybe once a month, just import the expenses in quickbooks to record.

p.s. great blog, i just started mine and hope it can be half as good!

]]> By: Wes http://www.fivecentnickel.com/2007/02/14/applying-for-a-business-credit-card/comment-page-1/#comment-67559 Wes Wed, 14 Feb 2007 21:03:51 +0000 http://www.fivecentnickel.com/2007/02/14/applying-for-a-business-credit-card/#comment-67559 Question: Does the "business" credit card impact your credit? I always assumed that they did, but obviously I'm not sure. Thanks! Wes Question: Does the “business” credit card impact your credit? I always assumed that they did, but obviously I’m not sure. Thanks! Wes

]]> By: nickel http://www.fivecentnickel.com/2007/02/14/applying-for-a-business-credit-card/comment-page-1/#comment-67553 nickel Wed, 14 Feb 2007 19:22:31 +0000 http://www.fivecentnickel.com/2007/02/14/applying-for-a-business-credit-card/#comment-67553 Steve: Good question, and I have no idea. We never carry a balance, so the interest rate is a complete non-issue for us. Steve: Good question, and I have no idea. We never carry a balance, so the interest rate is a complete non-issue for us.

]]> By: steve http://www.fivecentnickel.com/2007/02/14/applying-for-a-business-credit-card/comment-page-1/#comment-67548 steve Wed, 14 Feb 2007 19:04:33 +0000 http://www.fivecentnickel.com/2007/02/14/applying-for-a-business-credit-card/#comment-67548 What about interest rates? You should find if there's a 'savings agent' for small business cards What about interest rates? You should find if there’s a ’savings agent’ for small business cards

]]>