Getting a New Business Credit Card with only Personal Credit
If your business is new, you won’t have a business credit history—the commercial equivalent of your personal credit history.
It’s totally normal—your business is just starting up, and you haven’t had the chance to borrow as a business yet. Don’t be discouraged, though.
Not having a business credit history just means you have to personally guarantee your new business credit cards which, in turn, means you can leverage your personal credit history to secure startup business credit cards.
However, if you lack sufficient personal credit history, or your personal credit history is less-than-stellar, this might spell a challenge for you as you set out to secure the best business credit cards for new business.
Consider building personal credit history with a secured credit card before setting off on your search for startup business funding.
Will a Startup Business Credit Card Affect my Personal Credit Score?
Now, the answer to this next question will be less cut-and-dry than the previous one.
Whether a business credit card for new business impacts your personal credit score requires a bit more information about specific cards.
Most banks report your activity on startup business credit cards to the commercial credit bureaus, so the card activity goes into your business’s credit history.
However, not all go to the trouble of reporting your activity on startup business credit cards to personal credit bureaus. Some banks almost always report to personal bureaus, others almost never do, and still more only report if you’re seriously delinquent on your account.
Since starting a business is a dicey proposition, it might be better to stay safe rather than sorry and look into only the best business credit cards for new business that won’t report to personal credit score bureaus.
