Business Credit Cards: what you should know
The importance of business credit cards has increased significantly in the last 18 months. They can be very useful if you use it the right way. It is very important to make the distinction between a business credit card and a credit card that has your business name on it. The first one has the underwriting decision made on the employee identification number of your business while the second has the underwriting decision made on your social security number.
A personal credit file is generally made as soon as you are born and by the time you are 20 there is some credit information about your credit or use of credit, in short your credit history. It is wrong to assume that your business credit file starts the day you open your first corporation. For such a credit file to make sens you have to create and work on it.
The business operator files done in the Brad street and the D&B service tracks business credit versus FICO scors which is personal credit, also called paydex. Just like personal scors, business scores are important. The same way, but on another scale, if your paydex score is 80 or more you can get business lines of credit of different forms, based on you EIN.
The fastest way to built business credit is to get some straight lines of credit. Staples or office Depot, or Home Depot, or Lowes are the easiest way to get them. Use your credit card, pay it off a couple of times and that is going to built your line of business credit score, also called trade lines. There are many lenders that have business credit cards, based on EIN. A web site were you can go to find more is www.Rex.SBCAlliance.com . They offer you a number of cards for which you can apply and get your answer in a few days.
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