Q: Which business credit card has more appeal to creditors when applying for other business credit tradelines?
Business lenders may not have a brand preference when they review your company's credit report, but they do want to see a few key characteristics that show you can manage your accounts payable.
Just as consumers have FICO scores, businesses get scored by a firm called Dun & Bradstreet. Instead of trying to figure out how you're balancing your debts against your income, the D&B Commercial Credit Score tries to predict whether your company's likely to be able to keep up with paying its bills. The company's scoring model changes if you have fewer than 15 employees on your payroll by adding information from the owners' personal credit history.
Therefore, you want a business credit card that lets you build a strong track record under your company's Employer Identification Number, while maintaining your own solid performance among your personal accounts.
Right now, your goal should be to build a solid credit history with business credit cards so you can qualify for better terms on equipment and real estate financing later on. Entry level cards carry high finance charges that can sap your revenue. Stay in bootstrap mode, enjoy your card's rewards, and let us know how you make out in our credit card forum.
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