From what I know about this, the answer is no. The business credit line department is totally separate from the personal credit line department for most credit card companies. The same thing can be found at Home Depot, Lowe’s, OfficeMax, etc. They have 2 distinct applications, one for personal and one for business.
I have actually tried calling Capital One and MBNA to send me credit card applications for my business and they told me sorry, that you must receive a special solicitation from them by mail. Of course it still doesn’t hurt to call and find out for yourself.
How do you build corp credit - Posted by Cre Barbee
Posted by Cre Barbee on June 01, 2001 at 14:47:46:
I’m thinking of forming an LLC or Inc. before I purchase my first piece of property. However, I’m wondering is it possible to establish a business and purchase the property under that business name. If so, how will the company get the loan with it being a new company and with no credit history??? As it stands right now, I’ve been pre-qualified with my personal credit score which isn’t that great so that means a higher interest rate. If I’m an LLC or Inc. would I be able to get around using my personal credit to purchase my firt prop, or do I have to bite the bullet and deal with the 10 1/2 inst rate until my credit gets better?
I have several corps/LLCs and the way I always started to build credit was this way. First call Dun & Bradstreet and get a DUNS#. Acquiring this number is absolutely free. Once you get the number start hitting up the department stores.
Home Depot, Lowe’s, Target, OfficeMax, Office Depot, etc. all have business lines of credit. Slowly start applying for these. As long as you personally guarantee the credit line, these guys will almost definitely give you a credit card. Once you get the card, go and charge something and then pay it off immediately. You now have good corporate credit.
This will appear on your D&B report. Also these companies tend to sell lists to other creditors. It will be only a short period of time before Visa, MC, and Amex start soliciting you for a business account. Apply for these cards and build up good credit with them.
Once you do that, banks and finance companies will listen alot more to you about giving you corporate loans.
About 2 or 3 years ago someone on this site posted similar info. I followed the advice and BINGO, it worked. I just formed a corporation this January and just received my first Visa solicitation last week. I already have a Home Depot and Officemax card for this corp. The credit is pretty simple to obtain.
Personal or Corp, you still need to develop a solid track record and payment history to get credit. A new Corp is not much different than a individual starting to build their credit. Assets will or could speed this up. As a corp. establishes assets it will be easier to build a line of credit, get credit cards etc in the corp name.
Start with the bank the corp uses for its checking account. Build a relationship with the bank and start small, small loans, debit cards, bank credit cards etc. Also open up accounts at small lumber/home supply stores. Call your current credit card companies and ask to speak to a manager. Explain to them you are starting a new business and ask what they suggest you do, to start so you can get one of their cards for your corp. You would be surprised, they might offer you one right on the spot. Build a list of references you do business with and try to buy everything under the corp name if you can. Basically create a paper trail and small monthly accounts so you can establish a payment history. Might even try for a secured credit card in the company name. Gas cards can also be easy to get some times.
Supply type companies I have found to be the easiest. Places like Grainger and small local maintenance supply stores…they typically want a list of references, so list 3 and your bank. All they really ask is if you pay on time when they call them. The information that can be given is pretty limited so these offer a way to get started.
i was digging throught the archives and found you talking about building credit in a Corp. You said that “First call Dun & Bradstreet and get a DUNS#.” What is this , what is the number, and who are they? I want to do this, and it sounds easy. I just need an education.
Quick question. What if you already have pretty good credit and receive solicitations from cc companies on a personal level? Can I just start applying to Vis/Mastercard in my LLC name with my personal guarantee?
Also keep in mind that many/most creditors you look to in the begining for your LLC/corp., will allow you to open a business account, but will still want you to secure the credit personally.
My first account opened for my LLC required my personal guarantee as well. It showed up on my personal credit report as well.
I kept a perfect payment history and now I am able to get credit for my LLC,… stand alone.