Wells Fargo Business Secured Card: Best For Boosting Poor Business Credit Scores
Why we like it: This secured card doesnt boast high rewards and card perks, but its a great fit for owners with low credit scores who cant get approved for a traditional business credit card. It has a credit limit equal to a cash deposit held in a collateral account, and youll need a security deposit of at least $500 to qualify. However, you can deposit as much as you like for the credit line you need, up to $25,000.
In true Wells Fargo fashion, this card allows business owners the option of rewardsyoull earn points or cash back on every purchase. If you choose the points option, you can earn an introductory bonus worth approximately $100. Although this card doesnt offer fantastic rewards, its the best option available for owners with credit scores below 570.
Which Business Credit Cards Report To Personal Credit Bureaus
Last updated May 25, 2021| ByChristy Rakoczy
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Small business credit cards can be relatively easy to obtain and they often come with generous perks such as a hefty bonus for new card members or a rewards program that enables you to earn lots of points or miles on your everyday business expenditures.
But when you apply for a business credit card, one of the most important things to consider is which credit bureaus the card issuer reports to. Sometimes, business cards report your borrowing behavior on your personal credit history, while other times the card issuer only reports to your business credit file.
Why do you need to know which business credit card accounts do not report to your personal credit? This matters because it means your behavior with your business credit card could affect your personal credit score as well as your ability to build business credit.
This guide will help you to understand what information, if any, different business card issuers will put on your personal credit report. It will also explain why this is important in terms of building and maintaining a good credit score.
How Do I Build Up My Business Credit Score Without Using My Personal Credit
To build your business credit score without using your personal credit, youll need a business credit card that doesnt report card activity to your personal credit report. Business cards issued by Citi,;Wells Fargo, and U.S. Bank will not show up on your personal credit report, but many other card issuers report at least some of your business card activity to the consumer bureaus. For that reason, the CitiBusiness / AAdvantage Platinum Select Mastercard;or U.S. Bank Business Cash Rewards World Elite Mastercard could be a great choice.
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Best Picks For Airline Travel
There are many good airline business credit cards which are co-branded with specific airlines. Theyre meant to be used mostly with that one brand, where they offer perks and their best rates for earning award miles.
The best airline card or cards for you will depend on the airlines you like. If you love flying with Delta, take a look at its co-branded cards; but if you hate that airline, you should rightly avoid its credit cards.
Many of the major airlines have co-branded cards, giving you opportunities to earn a whole lot of airline miles. Usually they only have one business card offer each, but in some cases there are more. If you dont like the business card options, there may be a consumer airline credit card;thats more appealing.
Here are our top picks for airline business cards.
|United Business Card|
No Personal Guarantee Business Credit Card Options
There are just a handful of credit cards on the market that dont require a personal guarantee. Most credit issuers naturally want to know that someone will be held responsible if a business defaults. The only way to escape this requirement is to have a business that makes a lot of money, or to get a credit card that can only be used for gas purchases.
Here are the no personal guarantee business credit cards:
Its generally pretty easy to tell whether a small business credit card requires a personal guarantee. Just search the terms and conditions for the word liable. Most cards terms will include language noting that both the business and the individual applying for the card on behalf of the business are liable for transactions.
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What Happens If You Have A Card That Doesnt Report To All Three
If you have a card that doesnt report your activity to any of the three credit bureaus, youll get no benefit from using it responsibly. And if it reports to only one or two, the credit benefit of using the card will be limited.
For example, lets say you have a credit card that reports to Experian and TransUnion, but not to Equifax. Over time, youve used your card responsibly and established a good history on your credit reports with those bureaus.
But if you go to apply for a loan or a new credit card and the lender calculates your credit score based on your Equifax credit report, it will be as if you never had the credit card. Again, youll get no benefit.
Open Accounts With Companies That Report Payment History
The fastest way to build business credit is to establish accounts with companies that report payment history and then pay on time, Detweiler said. Not all business lenders and vendors report, so you often must be proactive about it.
She said a few vendors that report payment history include Grainger, Uline and Quill. As noted above, American Express, Bank of America, Capital One, Chase, Citibank and Wells Fargo also report card activity to business credit bureaus, such as Dun & Bradstreet, PayNet, Experian Business and Equifax.
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Major Differences Between Business And Personal Credit Cards
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For the most part,;small-business credit cards; credit cards designed to cover expenses for small businesses, freelance gigs and side hustles function just like personal credit cards.
Both types of cards earn rewards and accrue interest in the same way. Annual fees on both types of cards can be tax-deductible;if they’re used for business expenses. And in both cases, you’re generally on the hook for charges made.
But there are some key differences to keep in mind when applying.
The short answer: No.
Small-business cards have certain features that make them more attractive to those with businesses, freelancing projects or side hustles, but there’s no law that says you have to use a business credit card for business expenses. It’s fine to use a personal credit card instead. And for sole proprietors, such as freelancers or rideshare drivers, a personal credit card might even be a better fit overall.
The Answer: Yes In Certain Cases And Depending On Your Provider
- When you apply for a card.An issuer will typically still run a hard inquiry on your personal credit that will usually lower your personal credit score temporarily.
- If you default on your debt.Most business cards require a personal guarantee when you apply. This agreement permits the cards provider to pursue payments from your personal accounts if your company isnt able to meet its obligations. Your personal credit may take a big hit if youre unable to repay your debt. If you want to avoid this risk, consider a business credit card without a personal guarantee.
- When your issuer reports account activity to consumer credit bureaus.Some issuers will report account activity to consumer bureaus in all cases. This means carrying high balances on your card can affect your personal credit. Other companies will report to consumer bureaus only if you fail to make card payments.
If this is an important point for you, check what an issuers policy is before applying.
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Looking For More Business Insights
Loans, lines of credit and credit cards are subject to credit approval.
The information provided is not intended to be legal, tax, or financial advice. BB&T hopes you find this information useful but we cannot guarantee that it is accurate, up to date, or appropriate for your situation. You should consult with a qualified attorney or financial advisor to understand how the law applies to your particular circumstances or for financial information specific to your personal or business situation.
Business credit cards are subject to business type and credit approval.
Deposit accounts are subject to credit approval.
Truist Bank, Member FDIC and an Equal Housing Lender.;
New York City residents: Translation or other language access services may be available. When calling our office regarding collection activity, if you speak a language other than English and need verbal translation services, be sure to inform the representative. A description and translation of commonly-used debt collection terms is available in multiple languages at www.nyc.gov/dca.
Branch Banking and Trust Company is now Truist Bank.;Learn more.
A Credit Inquiry When You Apply
When you apply for a business credit card, the card issuer may consider both your businesss track record and your personal credit. This could include running a hard credit check on your personal credit, which could drop your credit scores by a few points.
Many business credit card issuers require that you sign a personal guarantee when you apply. This means that if your business defaults on payments, you can be held personally liable to repay the debt.
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Which Credit Cards Can Help Me Build Business Credit
Advertiser & Editorial Disclosure
Small business credit cards offer myriad benefits: rich rewards and cards with limits that are often higher than on personal cards. Plus, theres an added bonus that small business owners dont always recognize at first: A business credit card may help you build business credit.
In fact, getting one of these cards may help put your business on the map when it comes to building business credit, provided the card issuer reports information to commercial credit agencies. Not all cards have the same policy when it comes to reporting to business credit bureaus, though, and its important to understand how each one works.
Citibusiness / Aadvantage Platinum Select World Mastercard: Best For American Airlines Rewards
CitiBusiness® / AAdvantage® Platinum Select® World Mastercard®
Frequent American Airlines flyers who want premium airline perks
- 2 AAdvantage® miles on telecommunications, car rental, gas station purchases
- 2 AAdvantage® mile on eligible American Airlines purchases
- 1 AAdvantage® mile on other purchases
- First checked bag free
- Priority boarding on American Airlines flights
- Blackout dates for select booking
- Some rewards redemption fees may apply
- Free checked bag:;Check one bag for free for you and up to four companions traveling with you to domestic itineraries if they are listed on the same reservation
- Preferred boarding:;You and up to four traveling companions will be able to board once priority boarding is complete but before the rest of economy boards
- American Airlines companion certificate:;Earn one $99 domestic economy fareplus $21.60 to $43.40 in government taxes and feesafter you make at least $30,000 in eligible purchases each 12-month period before your card anniversary date
- Savings on inflight purchases:;Receive a 25% discount on inflight food, beverage, and Wi-Fi purchases you make with your CitiBusiness credit card
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Business Travel Credit Cards Vs Business Cash Back Credit Cards
The key difference between business travel credit cards and business cash back credit cards is the type of currency they earn.
Business travel cards earn miles or points that can be used to redeem for free travel through certain card issuer reward platforms or, in the case of co-branded cards, with specific airlines or hotels.
The types also differ in their annual fees. As a rule, business travel cards have fees, and most business cash back cards do not. One exercise to help decide between a travel card with an annual fee and a no-fee cash back card is to calculate whether your yearly spending will generate enough value to fully offset the travel card’s annual fee.
If the rewards are sufficient, and the card’s extras contribute additional value for you, the travel card may be the better choice. However, you might favor a no-fee cash-back card if you’re uncomfortable with paying for a card. That is especially the case if the fee for the card is on the high side and its benefits aren’t especially compatible with your travel preferences and style.
How Can Business Credit Cards Affect My Personal Credit
There are some instances when a business credit card will almost certainly affect your individual credit, and others when it depends on the company that has issued you the card.
Business credit cards could affect your credit when:
- You apply for a business credit card. Issuers will check your personal credit when deciding whether to approve you for a business credit card. That will result in a hard inquiry on your credit report, which could have a brief negative effect on your credit score. It’s more troubling to lenders if you have multiple hard inquiries on your credit report in a short time frame . Choose the business credit card you apply for carefully so you have the best shot at getting approved the first time around.
- The issuer reports business card activity to consumer credit bureaus. Any debt you incur on the card, and the payments you make toward it, may appear on your individual credit report if the credit card company you choose sends that information to the three consumer credit bureaus: Equifax, Experian and TransUnion. If your business credit card behavior makes its way to your personal credit report, it will affect your credit score in the same way as other credit cards do. On-time payment history and a low credit card balance will help your credit. Any missed payments will negatively impact your score; so will a high , or the amount of available credit you’re using.
Also Check: When Do Credit Cards Report Late Payments
What Does It Mean To Report To A Credit Bureau
In the United States, there are three major credit reporting agencies Equifax, Experian, and TransUnion that collect information on your personal credit history. Credit card companies provide details to these agencies about the amount you borrow and whether you pay on time or are late in repaying your debts and personal credit cards. All the information collected then determines your credit score.
There are also credit reporting agencies that collect information on businesses. While Equifax maintains both business and personal credit histories, there are some agencies such as Dun & Bradstreet that exclusively specialize in business credit files and generate business credit scores. Regardless of the agency, business credit reports are a separate thing from the personal credit reports of individual business owners.
But in some cases, business credit cards will require a personal guarantee when you open one. When this happens, your business credit card activity such as how much you’ve borrowed relative to your available credit and whether you pay on time could show up on your personal credit report and impact your credit score. Late payments, for example, could reduce your score as would borrowing too much on your business credit cards and ending up with a high .
Do Business Credit Cards Affect Personal Credit Make Sure They Dont
First, if you are getting business credit cards with a personal guarantee, you have to make sure they will not report to your personal credit report. There are a handful that will not, even though they do ask for a personal guarantee. It is important to note that a personal guarantee means there will be a personal credit check. That will create an inquiry that may affect your personal credit for a bit. However, if the account does not report payment information to your personal credit report, the impact will be minimal.;;
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Our Expert Panel For This Guide
We consulted top credit card experts from NerdWallet and The Points Guy, a certified financial planner, and our own credit cards editor to inform our picks for the best business credit cards. We also interviewed them about how to find the best small business credit card for you you’ll find the whole text of our interviews at the bottom of this page.
Responses To Which Credit Cards Can Help Me Build Business Credit
Hello,How long do I have to have business credit in order to apply for a credit card for my business? Because I dont want applying for credit cards that Im not going to get approved of damage my credit.
Most business credit cards make the decision based on personal credit scores, not business credit. If you have a Nav account, Matchfactor can help you narrow down choices. Its not full pre-approval but our customers who use Matchfactor are 3.5x more likely to get approved.
Ive been in business for 6 years and Im just trying to establish my business credit,I have really good personal credit, and Im just trying to get a card that will for sure start to build my business creditcan you give me the cards that will report to the business report please
Yes, scroll up to the chart in the article that shares which business credit bureaus many issuers report to. When you go to apply, Nav can help. If you have a free Nav account look in your account for matches. Its not full pre-approval but Nav customers who use MatchFactor are 3.5 times more likely to get approved for a business credit card. And if you have any questions, feel free to reach out to customer support: or 226-8388
It is our understanding Wells Fargo reports to SBFE though I cant comment specifically on the secured card. Unless you are getting a report that includes SBFE data you wont see that. I would suggest you reach out to them to confirm they are reporting your account.
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