Get Business Credit Cards Without Personal Guarantee

You know the drill. You shopped around the major banks, and then the medium-sized banks and then the small ones. And you tried the banks where you do business and any others recommended by your friends or business associates. But after your long quest, you were unable to get any sort of a business credit cards without personal guarantee.

There are over 500 different business credit cards out there but less than fifty of them offer credit to businesses without a personal guarantee. Complicating matters, these cards are not advertised or offered to all interested clients.

You can relate to the banks’ point of view. They don’t like risk so they try to minimize it by securing a business credit card. They do this by asking you, the business owner, to guarantee payments from your personal funds, in case of business default. If worst comes to worst, and as a guarantor or co-signer you are unable to pay the debt, then your personal assets will be executed. As in, your bank accounts, your car, your home, your stocks, and anything else you may have used to guarantee that card.

But your point of view, naturally, is that you need this card to run your business better.

What You Can Do to Get Business Credit Cards Without Personal Guarantee

Build business credit! Small business credit is credit in a company’s name. It doesn’t link to an owner’s personal credit, not even when the owner is a sole proprietor and the solitary employee of the company.

As a result, a business owner’s business and personal credit scores can be very different.

Get Business Credit Cards Without Personal Guarantee: The Advantages of Building Business Credit

Given that small business credit is distinct from consumer, it helps to safeguard a business owner’s personal assets, in the event of legal action or business bankruptcy.

Also, with two distinct credit scores, an entrepreneur can get two different cards from the same merchant. This effectively doubles buying power.

Another advantage is that even new ventures can do this. Heading to a bank for a business loan can be a recipe for frustration. But building company credit, when done correctly, is a plan for success.

Personal credit scores are dependent on payments but also other considerations like credit use percentages.

But for business credit, the scores really only depend on if a small business pays its invoices on a timely basis.

Get Business Credit Cards Without Personal Guarantee: The Process of Building Business Credit

Growing small business credit is a process, and it does not occur without effort. A business will need to actively work to build small business credit.

Nevertheless, it can be done easily and quickly, and it is much more efficient than building consumer credit scores.

Vendors are a big component of this process.

Doing the steps out of order will lead to repetitive rejections. Nobody can start at the top with small business credit. For example, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

Get Business Credit Cards Without Personal Guarantee: Start with Small Business Fundability

A small business must be fundable to lenders and vendors.

That’s why, a company will need a professional-looking website and email address. And it needs to have site hosting from a vendor like GoDaddy.

And, company phone and fax numbers ought to have a listing on ListYourself.net.

Likewise, the business telephone number should be toll-free (800 exchange or the like).

A business will also need a bank account dedicated only to it, and it needs to have every one of the licenses essential for operation.

Licenses

These licenses all must be in the particular, correct name of the small business. And they need to have the same company address and telephone numbers.

So, note, that this means not just state licenses, but potentially also city licenses.

Learn more here and get started toward establishing small business credit.

Get Business Credit Cards Without Personal Guarantee and Start Dealing with the Internal Revenue Service

Visit the IRS web site and obtain an EIN for the small business. They’re free of charge. Choose a business entity like corporation, LLC, etc.

A business can begin as a sole proprietor. But they will probably want to change to a kind of corporation or an LLC.

This is in order to decrease risk. And it will make the most of tax benefits.

A business entity will matter when it pertains to tax obligations and liability in case of a lawsuit. A sole proprietorship means the owner is it when it comes to liability and tax obligations. Nobody else is responsible.

Sole Proprietors Take Note

If you run a business as a sole proprietor, then at least be sure to file for a DBA. This is ‘doing business as’ status.

If you do not, then your personal name is the same as the small business name. Consequently, you can find yourself being directly responsible for all company debts.

Plus, per the Internal Revenue Service, using this structure there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 possibility for corporations! Avoid confusion and drastically reduce the chances of an IRS audit at the same time.

Get Business Credit Cards Without Personal Guarantee: Kick off the Business Credit Reporting Process

Begin at the D&B website and obtain a free D-U-N-S number. A D-U-N-S number is how D&B gets a business into their system, to produce 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 company. You can do this at fastcs.wpengine.com/reports. If there is a record with them, check it for correctness 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.

Vendor Credit Tier

First you need to build trade lines that report. This is also called the vendor credit tier. 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 acquire credit in the retail and cash credit tiers.

These types of accounts often tend to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But to start with, what is trade credit? These trade lines are credit issuers who will give you preliminary credit when you have none now. Terms are normally Net 30, rather than revolving.

So, if you get approval for $1,000 in vendor credit and use all of it, you need to pay that money back in a set term, like within 30 days on a Net 30 account.

Details

Net 30 accounts need to be paid in full within 30 days. 60 accounts need to be paid fully within 60 days. Unlike 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 proper way, you should get approval for vendor accounts that report to the business credit reporting bureaus. When that’s done, you can then make use of the credit.

Then pay back what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Vendor Credit Tier – It Makes Sense

Not every vendor can help in the same way true starter credit can. These are merchants that will grant an approval with marginal effort. You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

You want 5 to 8 of these to move onto the next step, which is the retail credit tier. But you may have to apply more than once to these vendors. So, this is to confirm you are trustworthy and will pay on time. Here are some stellar choices from us: https://oldcs.creditsuite.com/blog/5-vendor-accounts-that-build-your-business-credit/

Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then move to the retail credit tier. These are companies which include Office Depot and Staples.

Only use your SSN 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.

One instance is Lowe’s. They report to D&B, Equifax and Business Experian. They need to see a D-U-N-S and a PAYDEX score of 78 or more.

Fleet Credit Tier

Are there 8 to 10 accounts reporting? Then move to the fleet credit tier. These are service providers like BP and Conoco. Use this credit to buy fuel, and to fix, and maintain vehicles. Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make sure to apply using the company’s EIN

One such example is Shell. They report to D&B and Business Experian. They want to see a PAYDEX Score of 78 or higher and a 411 business telephone listing.

Shell may say they want a particular amount of time in business or profits. But if you already have sufficient vendor accounts, that won’t be necessary. And you can still get approval.

Learn more here and get started toward establishing small business credit.

Cash Credit Tier

Have you been sensibly managing the credit you’ve gotten up to this point? Then move onto the cash credit tier. These are businesses such as Visa and MasterCard. Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

One example is the Fuelman MasterCard. They report to D&B and Equifax Business. They want to see a PAYDEX Score of 78 or more. And they also want you to have 10 trade lines reporting on your D&B report.

Plus, they want to see a $10,000 high credit limit reporting on your D&B report (other account reporting)

Additionally, they want you to have an established small business.

These are businesses like Walmart and Dell, and also Home Depot, BP, and Racetrac. These are normally MasterCard credit cards. If you have 14 trade accounts reporting, then these are feasible.

Learn more here and get started toward establishing small business credit.

Get Business Credit Cards Without Personal Guarantee: Monitor Your Business Credit

Know what is happening with your credit. Make certain it is being reported and address any mistakes as soon as possible. Get in the practice of checking credit reports and digging into the details, and not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the CRAs. See: fastcs.wpengine.com/monitoring.

Update Your Record

Update the details if there are mistakes or the information is incomplete.

Get Business Credit Cards Without Personal Guarantee: Fix Your Business Credit

So, what’s all this monitoring for? It’s to dispute any problems in your records. Mistakes in your credit report(s) can be taken care of. But the CRAs normally want you to dispute in a particular way.

Get your 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.

Disputes

Disputing credit report mistakes usually means you send a paper letter with copies of any proofs of payment with it. These are documents like receipts and cancelled checks. Never send the original copies. Always send copies and keep the original copies.

Fixing credit report errors also means you precisely itemize any charges you contest. Make your dispute letter as understandable as possible. Be specific about the issues with your report. Use certified mail so that you will have proof that you mailed in your dispute.

A Word about How to Get Business Credit Cards Without Personal Guarantee

Always use credit responsibly! Don’t borrow more than what you can pay off. Keep track of balances and deadlines for payments. Paying on schedule and in full will do more to boost business credit scores than just about anything else.

Growing business credit pays off. Good business credit scores help a business get loans. Your credit issuer knows the company can pay its debts. They understand the business is for real.

The business’s EIN connects to high scores and lenders won’t feel the need to call for a personal guarantee.

Get Business Credit Cards Without Personal Guarantee – They Can be Yours

With patience and in time, you can get a business credit card from a bank with no personal guarantee. All you need is what the banks ask: a solid business generating steady revenues, with a healthy cash flow.

 Learn more here and get started toward getting high limit business credit cards without personal guarantee.