The new guide to establish business credit.

[stroked89coupe]

Yesterday I received first offer (application) for American Express Business Credit card. I talked today with representative and gave them my application RSVP number and asked if this is PG account. Lady explained me this is PG and we will check your personal credit just once and when we gonna report only to Business credit. I asked what credit agencies you report. She explained me they report to DNB and Equifax. I explained her what this is not what I am looking for, what I don't need PG, I need to build my business credit and PG doesn't help doing this. She started to treat me and explained what this is exactly what I need and this is going to build your credit, it will be reported to the 2 of 3 business agencies and she is the best source to inform me about it. So now I am again confused. Can I believe her ? Does anybody has business accounts with PG and you are able to see on DNB and other agencies ?

Regard's

 

If a pg'd business account would report to business credit agencies I would think Amex would. Amex probably has one of the largest business dept of any other creditor out there. American Express actually has non pg'g cards. They require lots of income and lots of paperwork to back that up. Again I would think Amex is probably the best setup in means of reporting to business cra's.

 

What you described that the lady stated sounds correct. But I cannot gauranty that it will report. If it does then that could be an option for you. I would not do this on a regular basis. Generally it's best to keep business and personal expenses seperate.

[KYBOSH]

I'm not sure where the notion that PG'd accounts do not report to business credit reports but my PG'd Citi Business Visa and Navy Federal Credit Union Business Visa both report to DnB and do not report to personal. I do not know for sure if they report anywhere else as i have not been able to see the other reports.

 

Good Luck

[alplouis]

Most AMEX cards require a PG. They do report to the business credit bureaus. They will report to your personal credit if you default.

[stroked89coupe]

I'm not sure where the notion that PG'd accounts do not report to business credit report

 

It comes from members that belong to credit boards stating they have business accounts that report to personal cra's instead of business or that simply don't report at all.

 

Some creditors are just simply not set up to report to business credit reports. And vise versa.

[stroked89coupe]

Most AMEX cards require a PG.

 

 

Agreed. Anything now a days that you receive in the mail will require a pg without a doubt.

[Arvydas]

So if amex will approve me based on PG and they will report to D&B and other business CRA it means what there is a better way to start build business credit? Does It means i can start from major creditors at a beginning and skip such creditors like Granger, Quill, Staples? Can I start let say with AMEX, City, Navy and other major creditors using PG ? (because i know my personal credit is strong and I have big chances to be approved) ? Will I be approved with major creditors without PG in the future ? You tell anything now a days that you receive in the mail will require a pg without a doubt. So what is a point to build credit if you know what everything today requires PG ? Our goal is to be save and keep our business separate from personal responsibility.

Sorry for asking same questions but I need to learn somehow before building my future.

[stroked89coupe]

So if amex will approve me based on PG and they will report to D&B and other business CRA it means what there is a better way to start build business credit? Better way? Not really anything better about. just a different way. Does It means i can start from major creditors at a beginning and skip such creditors like Granger, Quill, Staples? This depends on a lot of things. Mainly your business age. Usually it does not matter what is contained in your business file if your business is less than two years old. Can I start let say with AMEX, City, Navy and other major creditors using PG ? (because i know my personal credit is strong and I have big chances to be approved) ? Sure, But most people won't consider that business credit. Simply because it is pg'd. Will I be approved with major creditors without PG in the future ? Your chances are just as good, Remember you still have to meet certain ''qualifications'' if you will. You tell anything now a days that you receive in the mail will require a pg without a doubt. correct. So what is a point to build credit if you know what everything today requires PG ? Everything does not require PG. Everything listed in my sig did not require pg. Just everything you receive in the mail. The only thing you can get now that is not pg'd but displays the mastercard visa or discovercard logo is a universal fleet card that is able to be used at some fueling maintenance locations and parts stores. Our goal is to be save and keep our business separate from personal responsibility. Exactly. What your wanting to do is just the opposite.

Sorry for asking same questions but I need to learn somehow before building my future.

 

 

 

 

I would strongly advise you keep business and personal expenses seperate. Let me explain.

 

 

 

What would happen if you got injured or lost a job or your business went out of business and had to file bankruptcy. You may not ever think this will happen to you but this is exactly the people it happens to. Lets say you have a balance on all of the cards that you pg'd (Business and personal.) and you included these creditors in your bankruptcy. Now because the business cards report to the business cra's you now have managed to mess up your business credit.

 

 

 

The same thing can happen if your business goes bankrupt and you include these creditors (Business cards that you pg'd) in your bankruptcy. Now your business cards that you thought were such a good idea to have are now reporting to personal cra's in a bad way because you defaulted.

 

 

 

What happens if you need to file a bk for your personal cards but choose not to include your business cards because their is no ballance on them (lets say you were able to pif every month). Well guess what? These creditors are going to close your business accounts that have a pg tied to them because you are at a risk because of your bk. If they were not tied to personal this would not happen.

 

 

 

Those are a few examples.

 

 

 

You should ALWAYS keep business and personal seperate. ALWAYS! if something goes UNEXPECTEDLY WRONG you will regret not doing this. You will be able to build business credit just as fast my way as doing it your way. My way is better because it keeps your credit and your business credit safe if anything were to go wrong!

 

 

 

 

 

If you need any more help please let me know. I will be glad to help.

 

 

 

I want you to throw the idea of having a mastercard or visa or american express labled-NON PG"D- card out the window. Just forget about it. Those days are over no matter which way you build business credit. And by the way, I do business with CITI and GECRB. I have over 21 THOUSAND DOLLARS of credit extended to me through GECRB and over 16 THOUSAND DOLLARS extended to me through CITI. They are not cards I can take to the shopping mall and use but instead store cards that are backed by these creditors.NEVER PG'D a BUSINESS account in my LIFE!! Got all of this in under a year and a half and I started from NOTHING!

Edited December 31, 2012 by stroked89coupe

[stroked89coupe]

Arvydas,

 

 

 

Read this. This is what a member is going through just today because he decided to put business and personal credit together, Now he has messed up his personal and business credit profiles just by one little mistake....

 

 

 

http://creditboards.com/forums/index.php?showtopic=504817&st=0&gopid=4786251&&do=findComment&comment=4786251

 

 

 

This is why I say what I do. DO NOT MIX PERSONAL AND BUSINESS CREDIT TOGETHER. DO NOT PG A BUSINESS ACCOUNT!

[Arvydas]

Yes, everything you say is understandable and true. Thanks for information.

 

I have trucking business. I just started 1 year ago. Now I have just 3 trucks and my plan is to grow up at least to 12 units to be a mid size company. One unit of those 3 is under financing with kind of small and unknown financing corporation "Trebar financial services"; Loan is about 30K and i did 5K down payment as well. This account of course is PG and this was the only one option for me. My goal was to build my business credit and be able to get such kind of loans with known creditors like BOA, Chase, Navy without PG. From your information now I understood what now a days it is unreal and impossible. Such kind of loans probably always gonna be PG only and doesn't matter if my business credit will be strong.

 

This is why I was looking to get approved with AMEX, BOA and other major creditors even if they require PG, because my thoughts were concentrated how to get my credit file look better and stronger. Instead of such accounts like Granger, Staples, Uline I was ready to have AMEX, NAVY, BOA even with PG. AND if something goes wrong with my business my plan was default only on those truck financing loans but not with amex, BOA and navy.

 

 

Again stroked89coupe, thanks a lot for your info and everything you shared with me. It was nice to talk to you. I hope we will discus more in a future and maybe i will be able to give you some info as well.

[stroked89coupe]

Yes, everything you say is understandable and true. Thanks for information.

 

I have trucking business. I just started 1 year ago. Now I have just 3 trucks and my plan is to grow up at least to 12 units to be a mid size company. One unit of those 3 is under financing with kind of small and unknown financing corporation "Trebar financial services"; Loan is about 30K and i did 5K down payment as well. This account of course is PG and this was the only one option for me. My goal was to build my business credit and be able to get such kind of loans with known creditors like BOA, Chase, Navy without PG. From your information now I understood what now a days it is unreal and impossible. Such kind of loans probably always gonna be PG only and doesn't matter if my business credit will be strong.

 

This is why I was looking to get approved with AMEX, BOA and other major creditors even if they require PG, because my thoughts were concentrated how to get my credit file look better and stronger. Instead of such accounts like Granger, Staples, Uline I was ready to have AMEX, NAVY, BOA even with PG. AND if something goes wrong with my business my plan was default only on those truck financing loans but not with amex, BOA and navy.

 

 

Again stroked89coupe, thanks a lot for your info and everything you shared with me. It was nice to talk to you. I hope we will discus more in a future and maybe i will be able to give you some info as well.

 

 

 

 

Nice talking to you as well! anytime you have any questions on something I might be able to help you with please let me know!! I completly understand your thinking concept and it makes since to me that if you were to build a GOOD relationship with a creditor on a business or personal level they should WANT more business any way they can get it. Unfortunatly because of the UNEXPECTED past they have decided to minimize their risk. Which is understandable.

[stroked89coupe]

Updated 12/2012

[weallneedcredit]

I have browsed this entire thread and all of this info is great, however, I have a few questions.

 

IF YOU HAVE GREAT PERSONAL CREDIT, WHY WOULD'NT YOU SIMPLY PERSONALLY GURANTEE A FEW ACCOUNTS TO GET THE BALL ROLLING WITH YOUR BUSINESS. I UNDERSTAND THE LIABILITY FACTOR, BUT IN MY MIND IT'S 100% WORTH USING YOUR PERSONAL CREDIT, " OF COURSE THAT'S ONLY IF YOUR PERSONAL CREDIT IS GOOD ENOUGH TO HELP YOU IN THIS INSTANCE",. WOULD'NT HAVING GREAT PERSONAL CREDIT BE ONE OF THE PERKS IN YOUR FAVOR WHEN IT COMES TO COSIGNING FOR YOUR BUSINESS????

Edited March 10, 2013 by weallneedcredit

[stroked89coupe]

The two things are mainly the liability issue, And you would be supposed how many there are. Simple mistakes can go a long way. The other one is that MOST pg'd cards do not report to business cra's. but instead just to personal. Very few do. So that makes it just as easy not to pg anything and in the end, in my opinion, it's the best way to do things.

[Accredited]

I've gotta say this is one fantastic thread and I consider myself a little bit of a veteran but have learned a lot from this!

[stroked89coupe]

I'm glad you found something usefull in it. Welcome to the forums BTW. Hope you stick around.

[hyuk101]

Great info. Thanks for posting. Have had a business LLC for two years. Never had built up credit. Seems everyone wants a PG or SS # upfront.

[hyuk101]

Great info. Thanks for posting. Have had a business LLC for two years. Never had built up credit. Seems everyone wants a PG or SS # upfront.

[stroked89coupe]

Glad you found it usefull!! Welcome to the community!!

[killove]

Great Post. Does anyone know who reports to experian or exquifax

[stroked89coupe]

Thanks!

 

 

Welcome to the community!

 

 

If you have anyone in specific in mind you can ask in this thread and I will try my best to give you that information.

[killove]

Updated: 04/16/2013

　

 

This is what worked for me. Use it only as a guide. I think it can really help people that want to know the general process of how things work in the ''new age'' of establishing business credit.

 

 

Ok if you want to get some business credit it's NOT going to be instant. If you look in my signature where it lists my trades you can see exactly how much I have and who has extended me credit. Starting from the top. Left to right. Is the order they were obtained. So you can look at it as ''Easiest'' to Hardest'' if your just starting out.

 

 

The first thing you need to do is sign up with google places using your business name and information.. 411 directory. White pages online. Yellow pages online. Superpages online. And any other directory you can find. It's hard to get listed with 411 but it's a must if you want credit. A lot of times before businesses will extend credit they will verify the business information by searching for the phone number on 411. Getting listed on 411 will take a cupple of months. Unfortunatly thats just how long it takes. 411 Get's their information from other ''Sources'' as well as accepting submissions through their own site.. By signing up for everything above it will not only help you get listed quicker but it will help you receive more business when people search for ''Towing company's'' ect. Trust me. The phone will start ringing off of the hook.

 

Next. Sign up with DNB. https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm;jsessionid=3F4AA5AD50A26625D629DEC76E03D8EB.app2 DNB can automaticly create a file for you if you have been in business for a while (Similiar to how 411 works, You don't have to actually sign up with them but you can still get listed. (Just takes longer). It's best if you sign up with DNB before they create a file for you. If they create a file with incorrect owner information it may be hard for you to get in at that time because you won't be able to ''verify'' the correct information they have on file, Which may be incorrect.

 

 

DNB has a credit file for your business and reports ''Trade lines'' (Net 30's, Net 7's, Some revolving,Net 14's ect) and your payment history from company's that CHOOSE to report to DNB. DNB mainly handles NET accounts. Revolving accounts are usually reported to Experian or Equifax . These are the only 3 business credit reorting agencies that you need to worry about.

DNB is FREE! DNB is FREE! I can sign on and look at my payment history, Change company information and dispute tradlies that are not mine (Happens occasionally. If they are reporting good leave them. If they are derogatory dispute them) at any time through IUPDATE. DNB will call you every month or after you sign on through IUPDATE and try to tell you that you have to buy a credit package from them for you to get any credit ect. WRONG! They will tell you that 14 business have tried accessed your credit file but enless you have this package they won't be able access your file.You won't realize it at first but almost every time they call you they will be attempting to sell yo something. You won't realize it untill after they are talking with you for a cupple of minutes. Do yourself a favor and simply ask them to take you off of their calling list. If not expect to hear from them at least once a month or everytime you check your file on DNB. They will lie to your face and try to sell you the shoes you walked in the door with. I am fine with selling things, but not lying in an attempt to sell things.

 

 

With the old E-Update (Before they changed it to IUPDATE) you had to call in to get access to be able to login online to view anything. If this is still the case AGAIN they will try to say that you have to buy a credit package to be able to veiw anything about your company through IUPDATE. Tell them as many times as it takes.... "' No thanks I'd jut like access to IUPDATE''. DNB gives sales people a bad rap. They will lie to your face. They will probably tell you it can't be done anymore without paying for one of their packages. If you can't get anywhere call back and talk to someone else.

 

 

Next you can start calling the companys listed in my signature. Again starting from left to right. Some will ask to pre-pay for 90 days .You may be able to get your credit file going quicker if they do give you the prepay option and you decide to take it. Some won't ask at all. I choose not to prepay for those that asked. Which was ULINE. Grainger is one of the easiest accounts to get. You can usually get it as long as you are listed with the Secratary of State. Even if you don't have any other business credit. Usually they will start you off with a 1000.00 Credit line. It's best to place an order of about 75.00 or above that way it reports as 100.00 (It's usually rounded up). 50.00 trade lines are ok but 100's or above look better. Don't buy stuff you don't need enless you just have that money to waste. Some companys take months to report. Some take weeks.

 

 

Grainger and quill are the quickest to report (Out of thetrade lines that I have). They usually report within weeks. Some of the trades in my signature ask for a DNB number and some do not. They can find you on DNB even if you don't give them one by simply searching using their software. The company's in my signature are company's that I know of that REPORT to DNB with the EXCEPTION of global industrial and Pep boys (Does not report) and ULINE (Which does report but they asked me to pre-pay for 90 days and I said no thanks). A lot of other companys offer NET accounts but don't report. Usually those are smaller company's.

 

 

Once you start viewing your report online you will have a good idea on whats going on and when you can move to the next step. I try to order from everyone about every 2-3 months. That way the information stays current. I did this especially when I first started up. The trades will stay on your DNB report for about two years with no activity. So that means really you only need to order once from any giving company that does report to DNB. DNB will refresh the info listed on your report with any new info reported by creditors. So if you purchase 1000.00 from quill and then two months down the road you purchase a small 50.00 order, that 50.00 order will soon replace the 1000.00 trade amount that is being reported. Not good when trying to build credit.

 

 

　

And for anyone wondering, I never had over 100.00 trades reporting when building business credit in the initial stages. My higest cl on DNB was 250 (but showed 750 because there were three 250 trades stacked because they reported under the same catagory to DNB but were infact three different trades.) So if someone tells you that you have to make sure that 1 and 2 thousand dollar trades are reporting then come tell them to read this thread.

And for those of you wondering about Experian and Equifax CRA's that I mentioned earlier (The only other two major business CRA's out there) there's a little trick on checking your progress with them. Experian no longer shows the number of trades the business has and now only shows if the business has one or more trade lines and does not give a specific number. Equifax still shows the business info and how many trades are currently reporting.

Once you actually have a file with them you know you are on the right path.

 

Experian - http://sbcr.experian.com/pdp.aspx?pg=sample&hdr=pp&link=5502&offercode=EXPSBpdebr-t&intcmp=EXPSBbusrep_marquee

 

Equifax - http://www.equifax.com/small-business/credit-report/en_sb

 

Any questions about ANYTHING? Post up here and let me know! I will be more than happy to help.

Thanks for info.

 

Do have a list of companies that report to any\all biz credit reports? PG or no PG.

[stroked89coupe]

Thanks!

 

 

Welcome to the community!

 

 

If you have anyone in specific in mind you can ask in this thread and I will try my best to give you that information.

[killove]

Great Post. Does anyone know who reports to business experian and\or biz exquifax. Got All GE backed accounts and some else said all citi backed. are there more?

Edited April 29, 2013 by killove

[UrQueenSheba]

Hello Board, I thought Id share my new business credit journey. I plan to continue to update my trade line approvals as they come in.

 

Business Type= Real Estate Investments.. ( I plan to get enough business credit approximately ($25k to $50k) to buy a fixer upper and start from there)

 

Business Established July 2010

IRS Tax ID- July 2010

Applied for LLC- Feb 2013

Registered With Secretary of State- Feb 2013

DNB got me for $700- Feb 2013

Found this website- June 2013

 

Applied for:

FedEx- 11/2011- Approved Unk CL made several purchases

Grainger- 6/7/2013- Approved $1,000 CL made $54 purchase using CL

Quill- 6/7/2013- Approved $500 CL made $47 purchase using CL

Seton- 6/10/2013- Approved Unk CL made $42 purchase using CL

BMS (Business Marketing Services)- 6/10/2013- Approved $7500 CL haven't made a purchase yet but plan to order business cards from them

 

Reliable- 6/9/2013- Denied- Requested Pre-Payment- Decided to Cancel Order

Gemplers- 6/10-2013- Denied- Requested Pre-Payment- Decided to Cancel Order

Uline- 6/7/2013- Denied- Requested Pre-Payment- Decided to Cancel Order

Jiffy Lube- 6/10/2013- Denied ( I jumped the gun on this one)

 

NEBS- 6/10/2013- App still pending

WellsFargo- 6/12/2013- App still pending Gave $500 towards a secured business credit card

 

Unfortunately I didn't find this forum before starting this journey... I had already talked to DNB and let them sell me the $700 plan. Ive been using it as of lately only because of this site simply to see if my paydex score has changed from NA. Ill keep everyone posted on my journey and as I get approved for anything I'll share. This website is awesome special thanks to Stroked89coupe... Your Awesome and if it wasn't for you.. Id be still siting here twiddling my thumbs trying to figure out where to start. I plan to pay off my purchases and make another purchase from all CL's for approximately $100. I do have to admit my personal credit isn't great so I plan to be just like Stroked89coupe and not use a PG on anything. As of 6/12/2013 none of the above approved accounts are showing on DNB I know it takes several weeks. Ex is showing I have 1 trade line im assuming its fedex since that was my only account prior to June 2013.

 

 

 

[BRBiz]

You want to make sure your purchases are over $50 or they won't get reported.