Wells Fargo Business Secured Card - No PG for NP

[BoxCar44]

So, my second business is new and I am in the process of establishing credit. It's a nonprofit org. I am trying to stay away from leaning on my personal credit, so I haven't dived into many PG required ops. I am also trying to figure out how much credit I will need with my looking to raise about $2M in donations over the next 18-24 mos to get things going.

 

I decided to open a Wells Fargo biz checking/savings and a biz secured card. Banker told me that in roughly 6 -12 mos, you usually get upgraded and they refund you the security deposit. You can also sign up for the rewards program and the AF is waived the first year. Awesome sauce! So I am reading through all the paperwork and I come across a 'Nonprofit notice and disclaimer' which, in part, states: "...If the applicant is a not-for-profit organization recognized by and in good standing with the Internal Revenue Service, the personal guaranty of the signer is not required, and the personal guaranty paragraph below shall have no force or effect."

 

Wondering if anyone else has worked on establishing credit for a NP and if so, has this no PG thing always been around?

[dvd]

Why would you need a personal guaranty for a secured card anyway?

 

 

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[BoxCar44]

Not sure. My guess is that it still treats it as a regular credit/tradeline. My thing is that this disclaimer and no PG also applies to the other credit cards and BLOCs. Oddly enough, NPs are not eligible for the Secured BLOC.

[GFT]

I opened a secured business credit card with WF a year ago, and last week received an offer to upgrade to a un-secured card and receive a refund of my collateral account.

[BRBiz]

Why would you need a personal guaranty for a secured card anyway?

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Seems silly right? Not many secured biz cards out there and I believe they all require a PG.

The question is do they still pull your credit to qualify you for the card?

[BoxCar44]

I was told they would still pull credit. This was before we did the paperwork and confirmed my NP status. I wasn't required to sign the PG docs. I haven't seen a hit yet, but it's only been a day. The banker I worked with just told me the process and when to look for the card. I did a cash advance and deposited the funds into a biz savings. She then processed the app and I signed the auth to pull the funds over to the new card. It said pending and will be about 3 days before the card funds and then another 5-7 days to receive.

[GR8WhiTE]

I opened a secured business credit card with WF a year ago, and last week received an offer to upgrade to a un-secured card and receive a refund of my collateral account.

Nice! Congrats GFT!

 

So it took a full year? When it unsecures, does any amount unsecure?

 

Is it easier for a 1k cc to unsecure rather than a 25k secured cc?

[BoxCar44]

I opened a secured business credit card with WF a year ago, and last week received an offer to upgrade to a un-secured card and receive a refund of my collateral account.

GFT, did you increase your secured limit at all, and if so how much? And do you mind sharing what rate you were given for the unsecured offer?

[MainSt.]

 

I opened a secured business credit card with WF a year ago, and last week received an offer to upgrade to a un-secured card and receive a refund of my collateral account.

Nice! Congrats GFT!

 

So it took a full year? When it unsecures, does any amount unsecure?

 

Is it easier for a 1k cc to unsecure rather than a 25k secured cc?

 

Did it report to the biz credit? Equifax or Experian?