Why you should get business credit for your AOR!

Venturion said: Patch - please post these comments in the other thread. I will ask the mods to move the last 5 to 6 posts if they can. What I'd like to discuss further from your post is whether or not renegotiation can occur BEFORE default. If so, would there be any adverse impact to your personal credit profile since late payments on business credit cards ostensibly don't show on your personal credit report? If that's the case, the main risks in trying this tactic before default are interest expense and potential black-listing.Venturion, nice going with exploring this possibility.

Re "other thread" - link, please.

OK, interest rates are low so I am looking at refinancing. The application is clear when asking about personal liabilities and pre-fills info from my credit report on my personal cc debts, but less so when it comes to business debt (I have 4 business cards with substantial promotional BT balances on them). Should I disclose my business credit card balances for a personal loan application that does not specifically request the information?

While I am leaning towards not mentioning my business debt (unless asked) for my primary home refi the issue becomes more complicated when considering a refi for my rental property. I assume, in this case, that I need to include the business credit card balances as a personal liability, right? It fits better as a business liability but the application does not ask for any business liabilities other than property taxes and insurance. Is there a need (or reason) for me differentiate my business credit balances from my personal balances? How do you guys view business credit liabilities in the context of personally guaranteed loans like mortgages?

Glitch, my business was incorporated with its own TIN. However, I'm still personally liable for it and did provide my social security number when applying. So does the separate TIN really matter? (FYI, I don't disclose that business credit card debt when making personal applications for credit including my recent HELOC app)

Venturion said: Glitch, my business was incorporated with its own TIN. However, I'm still personally liable for it and did provide my social security number when applying. So does the separate TIN really matter? (FYI, I don't disclose that business credit card debt when making personal applications for credit including my recent HELOC app)I would say so. Your personal liability for the corporation's debt is only 'potential' - you are under no obligation to pay it, unless the corporation defaults. Its only at that point you actually become responsible for it (and at that point it also becomes disclosable). I dont know if I can clearly articulate my rationale, but I do see a clear line between the two. But that is just my opinion.

Regardless, I do think its pretty obvious that if there is no corporation/separate entity involved, you have primary responsibility for the debt, regardless of how it is labled, and it should be disclosed.

Okey, here is what happened with my applications with variuos cards

Keep in mind that I do not own a business but trying to get biz cards with 0% APR with capped fee. This is my only intent so far.

------------------------------------
Citi Business - I did not even bother since somewhere in the forum it has been told to ask proof of business

Citi Premier Pass Business - It is asking proof in the application form

Chase GM Business - This is only sent to targeted people

Barclays Business Card - I applied and I am waiting for a letter so no instant approval here

M&T Bank Business Card - I applied and I am waiting for a letter so no instant approval here

BOA Power Rewards Card - It is asking for certificate number so I guess it is for targeted customers

Bank Atlantic - They do not transfer cash only to a different card so no go here

Business Fifth Third Bank Card - Application asking for Tax ID# so no go here

Capital On biz Card - Tried to apply various cards but none has capped fee. So no go here

-----------------------------------------

Can you please tell me some more biz cards that I am not aware of?

fleetwoodmac said: Business Fifth Third Bank Card - Application asking for Tax ID# so no go hereYou do realize that you can use your SSN as the Tax ID#?

sultorn said: I just applied for an Advanta Business Card and got this:

Advanta said: We are sorry that we cannot extend the credit you requested at this time. Your application was denied for the following reason(s): # Historical or current delinquency reported on business report For answers to Frequently Asked Questions, click here We based our decision, entirely or in part, on a credit report(s) obtained from: Equifax, Inc. PO Box 740249 Atlanta,GA30374-0249 (800)727-8495

They also went on to say:

Advanta said: Please note that the Fair Credit Reporting Act does not apply to business credit reports, and business reporting agencies may charge you for your report.

My personal credit report has no "delinquencies." And aside from that, I only have one business credit card that I have paid on time since I got it. Has anyone pulled up their business credit report from Equifax? Has anyone ever disputed anything in their business credit report? Any way I can get it for free?

ThanksCall the phone number and ask for a copy. They'll send it to you in about a week.

nm

fleetwoodmac said: I received call the other day from one of the Biz cards I applied. She asked me what type of business I am in. I said I sell stuff in eBay. She replied clearly "we do not consider selling stuff in eBay as business"

Has anyone experienced similar questioning?Proper response: I am a sole proproprietership and my line of business is in sales. Only if pressed get into details about eBay sales . DO NOT lie, but you can structure your answers to be more like what they want to hear so as to sound "more legitimate." You are a sole prop with eBay sales after all.

just got the same request re citizenship from a Bank Atlantic biz app - and i had a couple in last year's AOR (a Barclay's product again, and National City - both personal cards) - although not for my M&T biz, ironically.

FWIW i am a permanent resident not a citizen, but there is nothing on my credit report that would indicate this.
i'm wondering with the smaller banks if they take a look at length of credit history versus age of applicant and when there is a disparity then they will ask for further proof. would that apply to you, even though you are a citizen?

either way, it's no big hassle to send them the stuff, although i try and get a fax number and a person to FAO to speed things along.

TheManWithout said: just got the same request re citizenship from a Bank Atlantic biz app - and i had a couple in last year's AOR (a Barclay's product again, and National City - both personal cards) - although not for my M&T biz, ironically.

FWIW i am a permanent resident not a citizen, but there is nothing on my credit report that would indicate this.
i'm wondering with the smaller banks if they take a look at length of credit history versus age of applicant and when there is a disparity then they will ask for further proof. That could indeed be a factor if someone is older, but has a credit history that began late into adulthood

74ak said: FYI: Discover Biz (under my LLC with TIN) reported to personal
Have a feeling this is going to start happening more and more with PG'd accounts.

lhendricks92 said: ColbyS said: 74ak said: FYI: Discover Biz (under my LLC with TIN) reported to personal
Have a feeling this is going to start happening more and more with PG'd accounts.

that would suck.

74ak, was this recently? did it immediately report to personal after opening the account? if not, any adverse action triggers?
I am not alone. Check this thread by Uso link

My account is more than 12 month old with zero balance as I paid it off few month ago and partially reallocated limit to personal. Yesterday, it popped on TU, and today on EQ.

I spoke to a very arrogant CSR yesterday, which though she "knows" waht she was talking about. I put her in place and asked to speak to supervisor. It was late when I called, so no manager was available to speak to me. But according to that CSR, this policy is not new - to report to personal even for LLC with distinct TIN (which I could not resist and called BS - I get very hyper when someone tries to put crap in my ears - so, my bad I overreacted ).

I hope it is just a glitch in their system and they fix it soon.

I just go this BofA Biz Card with $9K CL

I called the CSR and asked for transferring the balance from personal BofA to Biz BofA. She said they rarely do it but she can try and she also said if the transfer is approved my personal card will be cancelled.

1)Should I do the balance transfer from my Chase personal card to this BofA Biz card? Would they do that?

2) I asked for CL increase they said they will run the TIN (Which is my SSN anyway). Should I wait a little more for CL since I just got the card today?

fleetwoodmac said: I just got a letter from M&T Bank asking for my proof of citizenship. Is this normal? I own so many personal CC but none of them asked for this yet this one biz card asking for proof. I am a citizen so no problem there but why the questioning about citizenship? I would understand asking for proof for any kind of working permit but citizenship?

Can someone clarify?

Did they say why they wanted that? Patriot Act or something? I am a permanent resident, and have a BankAtlantic card from my AOR two months ago. My US credit history is shorter than fleetwoodmac's (~10 years).

And what if the answer is "no"? I do know that non-immigrants on visas are seen as flight risks, whereas permanent resident status indicates someone who went through a lot of trouble to stay here, so are seen as equivalent risks to citizens.

MikeR397 said: I know Chase used to allow personal to busienss, but not business to personal. Now, chase does not allow any consolidation either of these directions.
When I called they offered to convert Chase United biz to Chase personal a month or two ago

I currently have a $40k Chase Business line(AMA card) that is sitting unused, and a freshly opened Chase Disney waiting for a $75 capped BT. Yeah, I would definitely like to know if its possible to consolidate/close from biz->pers before I threaten to close the account and they call my bluff.

When I called earlier this week, I got a very kind and knowledgeable CSR, but she still claimed she can only go pers->biz, not the other way. I hope that sweet voice wasn't lying to me.

Yeah, I did that with Citi Pro as well. I asked the CSR on Tues. if I could convert it to a personal card and she said no, but she already knew what I was trying to accomplish at that point. Maybe I'll try another call.

MikeR397 said: fleetwoodmac said: I just go this BofA Biz Card with $9K CL

I called the CSR and asked for transferring the balance from personal BofA to Biz BofA. She said they rarely do it but she can try and she also said if the transfer is approved my personal card will be cancelled.

1)Should I do the balance transfer from my Chase personal card to this BofA Biz card? Would they do that?

2) I asked for CL increase they said they will run the TIN (Which is my SSN anyway). Should I wait a little more for CL since I just got the card today?
(1) You can do balance transfers to/from personal cards to business cards typically with no problems. They won't have any idea if its a personal or business card, all they need is the 16 digits.

 

(2) It sounds like this CLI is going to result in a hard pull keep in mind. I'd wait for the CL results before doing anything, especially if there's a BT transfer fee involved. You can call and ask for the CLI status if you wish, just don't pay two BT transfer fees.

Also, when you say "transferring the balance from personal BofA to Biz BofA, I assume you mean consolidating the creidit lines right, and not moving an actual balance from personal to business? Keep in mind that while they may allow the personal to business reallocation, once that is done, you typically can't go back from busienss to personal. I know Chase used to allow personal to busienss, but not business to personal. Now, chase does not allow any consolidation either of these directions.

Yes Mike I meant moving actual balances from one to another. What is the difference between moving the balance and consolidating? Which one is better?

Another reason why you should get business credit for your AOR:

In my AOR (late 2007) I got a Chase Biz card with a $20k CL. I did a $19.5k BT, then paid it off in Sept. 2008.

Then I left the card open and unused. In early February I received in the mail a targeted offer of 0% BT, but with a cap of $299. Offer came with checks.

I decided to go for a CLI to $30k, and got it. This puts my BT fee at about 1% of the BT amount. Even if the rate on Rewards checking goes from 5% to 4%, I think I can make at least $700 on the deal.

(Note 1: The 28 percent increase in HHI since my Oct. 2007 AOR obviously helped. Note 2: My sole proprietorship has no income yet; all HHI is from my day job.)

This small success is particularly satisfying in light of FWF reports that Chase is no longer issuing biz cards.