BUSINESS CREDIT TIERS

[greywolf]

Below is a humble attempt to rate and categorize my understanding of business credit. Some of these accounts will require age, either 1 or 2 years in business. The prerequisites are just estimates, some businesses based on their industry and specific application will have an easier/harder time progressing through the tiers. Many applications will ask for credit references, be sure to provide accurate information, some vendors may not require references, but others will require at least one to verify your payment history. Some vendors will require a bank rating, in which they request a brief history of your bank account, looking at the average balance, any overdrafts and the open date. Ideally, you should have an average daily balance of $10k, for three months. For some businesses, this is not realistic, however most vendors do not request bank ratings for smaller accounts.

 

Please make sure you have completed all of the basic steps to form your company and credit profile, prior to applying for credit anywhere. If this is followed, you should be able to obtain most of the accounts listed below. The process requires at the very minimum 6 months, if you are a new company, expect it to take 2-3 year. Business credit is not a ‘one-time’ event in your business; it is an ongoing process that grows with your business.

 

If you would like to modify/change something, please copy/paste and highlight your modification in another color.

 

Tier I

Prerequisites: Filed with SOS, DUNS, 411

Reliable

Uline

Quill – having a website may help with this

Grainger

Gempler’s

HD Supply

Seton

Interstate Batteries

 

Teir II

Prerequisites: Paydex, 5 D&B Trade Lines, $250 High TL, EX and EQ files established

Staples

Office Depot

Valero

Citi backed gas cards

FleetCor; Citgo, BP, Chevron

Any cell service

 

Tier III

Prerquisites: Same as Tier II + 7 D&B trade lines$500 High TL, >3 TLs on EX/EQ

Northern Tool

Newegg

Most Citi backed store cards with the exception of Home Depot

Sears (requires age)

Best Buy (requires age)

 

Tier IV

Prerequisites: Same as Tier III + $2.5k High TL, 10 D&B Trade Lines, >7 TLs on EX/EQ

Key Bank (with PG, no pull)

Home Depot net 30

Apple Lease (requires age)

Costco (requires age)

Radio Shack

Sunbelt Rentals

 

Tier V

Prerequisites: Same as Tier IV + $5k High TL, 15 D&B Trade Lines, >10 TLs on EX/EQ

Lowe’s Revolving/Net 30

Amazon Revolving/Net 30

Wright Express

Home Depot Revolving (PG, no pull)

Tiger Direct

 

Tier VI

Prerequisites: same as Tier V + $10k High TL, 20 D&B Trade Lines, >15 TLs on EX/EQ

Target (requires age)

Walmart

Sam’s Store card

Comdata

 

Tier VII Prerequisites: Same as Tier VI + $20k High TL, 25 D&B Trade Lines, >20 TLs on EX/EQ

Dell

BMLB

Sam’s Discover

 

Tier IIX

Prerequisites: Same as Tier VII + $40k High TL Financial Statement attached to D&B

Ford Motor Credit

[bluesmap]

OHHHHHHH really nice.

 

thanks a lot for this

[BRBiz]

Below is a humble attempt to rate and categorize my understanding of business credit. Some of these accounts will require age, either 1 or 2 years in business. The prerequisites are just estimates, some businesses based on their industry and specific application will have an easier/harder time progressing through the tiers. Many applications will ask for credit references, be sure to provide accurate information, some vendors may not require references, but others will require at least one to verify your payment history. Some vendors will require a bank rating, in which they request a brief history of your bank account, looking at the average balance, any overdrafts and the open date. Ideally, you should have an average daily balance of $10k, for three months. For some businesses, this is not realistic, however most vendors do not request bank ratings for smaller accounts.

 

Please make sure you have completed all of the basic steps to form your company and credit profile, prior to applying for credit anywhere. If this is followed, you should be able to obtain most of the accounts listed below. The process requires at the very minimum 6 months, if you are a new company, expect it to take 2-3 year. Business credit is not a ‘one-time’ event in your business; it is an ongoing process that grows with your business.

 

If you would like to modify/change something, please copy/paste and highlight your modification in another color.

 

Tier I

Prerequisites: Filed with SOS, DUNS, 411

Reliable

Uline

Quill – having a website may help with this

Grainger

Gempler’s

HD Supply

Seton

Interstate Batteries

 

Teir II

Prerequisites: Paydex, 5 D&B Trade Lines, $250 High TL, EX and EQ files established

Staples

Office Depot

Valero

Citi backed gas cards

FleetCor; Citgo, BP, Chevron

Any cell service

 

Tier III

Prerquisites: Same as Tier II + 7 D&B trade lines$500 High TL, >3 TLs on EX/EQ

Northern Tool

Newegg

Most Citi backed store cards with the exception of Home Depot

Sears (requires age)

Best Buy (requires age)

 

Tier IV

Prerequisites: Same as Tier III + $2.5k High TL, 10 D&B Trade Lines, >7 TLs on EX/EQ

Key Bank (with PG, no pull)

Home Depot net 30

Apple Lease (requires age)

Costco (requires age)

Radio Shack

Sunbelt Rentals

 

Tier V

Prerequisites: Same as Tier IV + $5k High TL, 15 D&B Trade Lines, >10 TLs on EX/EQ

Lowe’s Revolving/Net 30

Amazon Revolving/Net 30

Wright Express

Home Depot Revolving (PG, no pull)

Tiger Direct

 

Tier VI

Prerequisites: same as Tier V + $10k High TL, 20 D&B Trade Lines, >15 TLs on EX/EQ

Target (requires age)

Walmart

Sam’s Store card

Comdata

 

Tier VII Prerequisites: Same as Tier VI + $20k High TL, 25 D&B Trade Lines, >20 TLs on EX/EQ

Dell

BMLB

Sam’s Discover

 

Tier IIX

Prerequisites: Same as Tier VII + $40k High TL Financial Statement attached to D&B

Ford Motor Credit

 

I think you may have to move a couple around based on my exp and others on here. if any one agrees?

 

Citi gas cards should be moved to tier 3 not as easy to get

Keybank back to 3 Usually want a $1000 high only

Home Depot Net 30 to tier 5

Home Depot Revolve to tier 6

HD Supply tier 2

Apple lease to tier 5 since it is GE

 

Other then that they look pretty good and like he said one little thing can change everything, you could have one large trade and get approved for most of those after a month in business and I dont really think the EX score helps or hurts alot I have alot of these accounts and only 3 trades and score of 33 on EX

 

Its pretty funny that there are 3 store branded cards at tier 6 , just shows the times!

Edited February 20, 2010 by Brndnh721

[BRBiz]

Add Gopromos.com to tier 1

 

Maybe when we are done the lead can wipe out all the threads we dont need in here to keep it clean

[22bobbie22]

Hello Everyone. (mini intro - long time lurker, never posted before)

 

 

THIS IS A MUCH NEEDED THREAD

- thank you all for finally getting to up date this important topic.

 

If I may make a suggestion (not sure if it is going to be a separate topic sticky);

 

 

- I think that right ahead of the biz credit tiers there should be:

"Must do before applying for Biz credit - step by step"

 

 

I am willing to write up this step by step.

 

 

Do we need a vote or shall I just start a thread?

 

 

2b

[clintbeastwood]

nice post Greywolf!

 

I'd move staples into the higher tiered levels, based on experience

[greywolf]

I am working on something for the 'getting started' level, where it would deal with incorporating and such. The basics really haven't changed, so I am pretty much coping/pasting a lot of the information and condensing it from different thread.

[Mastro_Gelataio]

Awesome job wolf!!!

 

You came through!!!

 

This is a bookmark for sure!!!

 

[Griff2010]

Pin it! We need this. Nice job

[bshirley]

Hi Guys,

 

Any help offered would be much appreciated.

 

I have successfully ordered through Tier I the following companies:

 

Uline

Gemplers

Quill

Reliable

 

My DNB has a Paydex of 80 now but only 3 lines are reporting

 

MY DNB report states the following:

 

Payment By Industry:

 

1 Ret mail-order house 1 50 50 100 - - - -

2 Whol service paper 1 50 50 100 - - - -

3 Whol durable goods 1 50 50 100 - - -

 

 

Does anybody know from experience which one of the 4 companies above I ordered through might not be reporting ?

 

Also not a single company has reported to Experian credit report, which is the reasoning Staples gave me after denying my application with them. How can I establish Experian and Equifax files?

 

Thank you in advance to anybody that can shed some light on this.

 

Bill

[clintbeastwood]

Hi Guys,

 

Any help offered would be much appreciated.

 

I have successfully ordered through Tier I the following companies:

 

Uline

Gemplers

Quill

Reliable

 

My DNB has a Paydex of 80 now but only 3 lines are reporting

 

MY DNB report states the following:

 

Payment By Industry:

 

1 Ret mail-order house 1 50 50 100 - - - -

2 Whol service paper 1 50 50 100 - - - -

3 Whol durable goods 1 50 50 100 - - -

 

 

Does anybody know from experience which one of the 4 companies above I ordered through might not be reporting ?

 

Also not a single company has reported to Experian credit report, which is the reasoning Staples gave me after denying my application with them. How can I establish Experian and Equifax files?

 

Thank you in advance to anybody that can shed some light on this.

 

Bill

 

staples has become harder to get, I'd try going with Office depot first

[bshirley]

clintbeastwood

 

I read somewhere that Citibank reports your Office Depot Business Credit Account to your personal credit report.

 

Have you found that to be true?

[greywolf]

clintbeastwood

 

I read somewhere that Citibank reports your Office Depot Business Credit Account to your personal credit report.

 

Have you found that to be true?

No, that is false

[clintbeastwood]

clintbeastwood

 

I read somewhere that Citibank reports your Office Depot Business Credit Account to your personal credit report.

 

Have you found that to be true?

 

 

hmm, not that I have heard of, yet again, I did not PG my office depot account, I know they reported to my EX. Business report

[bshirley]

Clintbeastwood,

 

I just applied and got approved for the Office Depot Business Credit Account. The application did not ask for SS#, just my name.

 

Thanks for the info.

 

Do you know of any other TL I can apply for right now which will definitely report to Experian or Equifax ?

 

Bill

[clintbeastwood]

Clintbeastwood,

 

I just applied and got approved for the Office Depot Business Credit Account. The application did not ask for SS#, just my name.

 

Thanks for the info.

 

Do you know of any other TL I can apply for right now which will definitely report to Experian or Equifax ?

 

Bill

 

 

congrats, I heard Northern Tool reports to both of those, I got lucky with my OD card reporting , they reported after my first payment, others have had to wait longer, I think Greywolf had to wait like 6-8 months IIRC

[clintbeastwood]

anybody know if Newegg reports anywhere???

[leaseadvice]

Great job greywolf, you hit it right on the spot. This is as accurate as it gets!!!

[greywolf]

anybody know if Newegg reports anywhere???

It seems to be hit or miss. I have been told by two different people at Newegg, that their insurance company will report to D&B once a year. I have had my account for a little over 5 months and haven't seen anything yet.

[soonerbill1]

Need some clarification on the Home Depot Revolving account. I have a $15k line with Home Depot on the LAR/ Net 30.

Question, is do they pull personal credit or do they just require a PG?

Also what kind of credit line is typical?

[ChrisPA]

I believe Keybank MC can be moved to a lower Tier. I saw several approvals for newer business so I took the plunge, applied, and was approved. I'd put it in the higher end of Tier II or an easy Tier III. I fall between the 2 tiers.

 

Tier I

Prerequisites: Filed with SOS, DUNS, 411

Reliable

Uline

Quill – having a website may help with this

Grainger

Gempler’s

HD Supply

Seton

Interstate Batteries

 

Teir II

Prerequisites: Paydex, 5 D&B Trade Lines, $250 High TL, EX and EQ files established

Staples

Office Depot

Valero

Citi backed gas cards

FleetCor; Citgo, BP, Chevron

Any cell service

 

Tier III

Prerquisites: Same as Tier II + 7 D&B trade lines$500 High TL, >3 TLs on EX/EQ

Keybank MC (PG req, no pull)

Northern Tool

Newegg

Most Citi backed store cards with the exception of Home Depot

Sears (requires age)

Best Buy (requires age)

 

Tier IV

Prerequisites: Same as Tier III + $2.5k High TL, 10 D&B Trade Lines, >7 TLs on EX/EQ

Home Depot net 30

Apple Lease (requires age)

Costco (requires age)

Radio Shack

Sunbelt Rentals

 

Tier V

Prerequisites: Same as Tier IV + $5k High TL, 15 D&B Trade Lines, >10 TLs on EX/EQ

Lowe’s Revolving/Net 30

Amazon Revolving/Net 30

Wright Express

Home Depot Revolving (PG, no pull)

Tiger Direct

 

Tier VI

Prerequisites: same as Tier V + $10k High TL, 20 D&B Trade Lines, >15 TLs on EX/EQ

Target (requires age)

Walmart

Sam’s Store card

Comdata

 

Tier VII Prerequisites: Same as Tier VI + $20k High TL, 25 D&B Trade Lines, >20 TLs on EX/EQ

Dell

BMLB

Sam’s Discover

 

Tier IIX

Prerequisites: Same as Tier VII + $40k High TL Financial Statement attached to D&B

Ford Motor Credit

Edited February 23, 2010 by ChrisPA

[djduane]

anybody know if Newegg reports anywhere???

It seems to be hit or miss. I have been told by two different people at Newegg, that their insurance company will report to D&B once a year. I have had my account for a little over 5 months and haven't seen anything yet.

 

Wolf do they require PG?

[greywolf]

anybody know if Newegg reports anywhere???

It seems to be hit or miss. I have been told by two different people at Newegg, that their insurance company will report to D&B once a year. I have had my account for a little over 5 months and haven't seen anything yet.

 

Wolf do they require PG?

Nope, as far as I can tell, they are fairly liberal with limits as well. They do favor age, but a strong file will make up for it.

[djduane]

anybody know if Newegg reports anywhere???

It seems to be hit or miss. I have been told by two different people at Newegg, that their insurance company will report to D&B once a year. I have had my account for a little over 5 months and haven't seen anything yet.

 

Wolf do they require PG?

Nope, as far as I can tell, they are fairly liberal with limits as well. They do favor age, but a strong file will make up for it.

 

 

Thanks for the info

[bluesmap]

can you add l3store.com to the list?

 

i think you are the one that made the thread about it.