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Q: Do I qualify for a Visa if my new business has no credit established?
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Added November 5, 2010 from: Mike Killian
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Mike Killian
Answered By Mike Killian: Generally you will probably have to have established credit to be approved for a business credit card. A creditor will want to run a credit check on the business name, but if it's that new, chances are it will not turn up a credit history. Therefore, some things you probably want to do right away (if you haven't done so already) would be to incorporate as a business, such as an LLC, to ensure your company is seen as a separate business entity. You should also have a federal Employer Identification Number. Opening a business bank account in your legal business name and setting up a dedicated business phone line in your business name insuring it is listed are also wise ideas. These are all standard new business set up procedures.

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Once one or preferably all of the above have been done, you can request business credit in your company name. Your business trades then are reported to the credit bureau, creating a robust business credit report that gives lenders and suppliers quality information about your company and boosts your ability to obtain loans, increase credit lines and earn more favorable credit terms.

Another alternative is getting a personal credit card until you have trade lines established to help improve your credit profile. Before you apply for a credit card, you should have some ideas of how you plan to use it. For example, if you travel, you might be interested in frequent flyer miles or cash back for hotels and dining. Pay attention also to annual fees and purchase APRs, and the terms you will be faced with after any special promotions end.

This question is about:  Build / Rebuild Credit | Business Credit | Visa Credit Cards
1 Responses to "Do I qualify for a Visa if my new business has no credit established?"
  1. Vincent April 25, 2012 at 10:08 am

    What business credit cards should I apply for if I have good personal credit. Also my corporation is 4 years old with no credit history. I am working on getting an 80 paydex right now though. So for personally guarenteed cards what is the one that will give me the highest limit?

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