If I give a personal guarantee on a business credit card for my corpo how does it affect my personal credit?
First let me say that I DO NOT want to know how or pay you to obtain business credit without a personal guarantee!
I own a small business and I am incorporated, with an EIN and seperate business bank account. I am interested in possibly obtaining a business credit card, or a business line of credit. I was looking at some different banks/card and I notice the majority would like a personal guarantee. I have no problem with that, I just would like to know how it will affect my personal credit. Does the business credit card/line of credit show up on my personal credit report? Is there a hard inquiry when applying and/or giving my personal guarantee? If I apply for a business credit card/line of credit with a bank/credit card company that I currently have a personal credit card through does the business card affect that personal card? Any information would be great. Seems like all the info out there is about getting business credit without a personal guarantee, and paying for that info. Thanks!
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One comment
Joe Lawrence on October 27, 2009 at 2:01 am
For the majority of business credit lenders, including Chase Business, Amex Business , Citi Business, Capital One Business and Office Depot Business Credit Account, the line of credit / credit card will not show up on your personal credit report. I can say this because I have lines and credit cards with all of them (and others) and they do not show up on my personal credit report (other than the inquiry).
You will, however, have a hard inquiry on your credit report at the time they pull your personal and business credit reports. It will be a small "hit" on your credit report though, since it’s only a credit check.
If you currently have a personal card with a bank and you are obtaining a business credit card, then yes, one can affect the other (depends on the bank). For example, if you paid late with your personal credit card with Bank of America, it can affect your business credit line.
If you want to increase the amount of credit you can obtain, I recommend obtaining a DUNS number and building business trade credit lines. This will boost your business credit report and result in obtaining higher credit limits. Good luck!
-Joe Lawrence
http://www.businesscreditworkshop.me