What’s a good first credit card to get to start establishing business credit?
Go Stillers! asked:
I recently started an LLC and would like to start establishing my business credit. What are some good first credit cards to get that will help me establish my business credit? Most I’ve seen want my personal credit as a co-signer for my business, but I would prefer to stay away from that. I mean, what was the point of forming an LLC if my personal credit was going to be taken into account for everything, right?
Juan
I recently started an LLC and would like to start establishing my business credit. What are some good first credit cards to get that will help me establish my business credit? Most I’ve seen want my personal credit as a co-signer for my business, but I would prefer to stay away from that. I mean, what was the point of forming an LLC if my personal credit was going to be taken into account for everything, right?
Juan
Tags: Co Signer, Credit Card, Credit Cards
May 6th, 2009 at 6:45 am
Honestly, every credit agency will want you or any other members of the LLC to sign for the cards. Trust me…I know that as a small business owner, your credit is probably as crappy as mine was. In order to start a business, you have to sacrifice your personal credit.
However, to start establishing business credit, start by using smaller industrial supply companies for janitorial supplies or office supplies. They always offer a 30-60 day pay on invoices and you can use them as credit references for larger credit accounts. Also, any small community or regional bank (avoid the big ones at all costs until you have a large operating reserve) who is listed as an SBA preferred lender will work with you to establish a credit limit for your company, usually as an overdraft account on the LLC’s checking account.
I hope this helps some
May 8th, 2009 at 8:50 pm
I don’t live in the US so I might be missing something, however, I do agree with you, what’s the point in having an LLC. if you have to be liable for everything?
I am a big fan of “non credit” cards, I mean debit cards,re-loadablee prepaid cards… and other forms where you can only spend what you have thus preventing any bad records.
May 9th, 2009 at 3:12 pm
Just use the credit card for shopping and pay it in time, and your credit score will grow. Here is some most popular credit card offers to establish credit – cardnow.undonet.com