• Home
  • Blog
  • Business Credit Cards That Don’t Report to Personal Credit

Business Credit Cards That Don’t Report to Personal Credit

Reviewed by Ty Crandall

November 3, 2023
Business Credit Cards That Don't Report to Personal Credit

Use Our Science-Backed Research and Get Business Credit Cards that Don’t Impact Your Personal Creditbusiness credit cards that don't impact consumer credit Credit Suite

Get business credit cards that don’t impact your personal credit – this is FOOLPROOF!

When you consider the difference of your business credit score vs personal credit score, keep in mind that any inquiries into your personal credit score will negatively affect that score. And a lot of merchants and lenders will perform inquiries when doing business with you for the first time. You do not want their inquiries to be affecting your personal credit.

Get Business Credit Cards that Don’t Impact Your Personal Credit – Here’s how:  Get a D-U-N-S number

You can’t get into Dun & Bradstreet’s system without one, and they are free, anyway. A D-U-N-S number differentiates your business from all others, including similarly-named businesses.

Dun & Bradstreet has a requirement that you register your small business on their site before they will hand out a D-U-N-S number.

Please note: there are a few slightly different methods of getting a D-U-N-S if your business belongs to a special class. These include if your small business is a US government contractor or grantee, or your company is Canadian, or you are working as an Apple developer.

Once in D&B’s system, search Equifax and Experian’s sites for your business. You can do this at https://www.creditsuite.com/reports/. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.

By doing so, Experian and Equifax will have something to report on.

Get Business Credit Cards that Don’t Impact Your Personal Credit – Here’s how:  File a DBA

If you operate your business as a sole proprietor at least file for DBA status. If you do not, then your personal name will be the same as your company name.

As a result, you can still end up being personally liable for all business debts. Plus, according to the Internal Revenue Service, with this structure there’s a 1 in 7 chance of an IRS audit. This is in contrast to a 1 in 50 chance for incorporated businesses! Avoid confusion with this step. And you can significantly lower your chances of an IRS audit. And who doesn’t want that?

But never look at a DBA as being anything more than a steppingstone to incorporating.

Get Business Credit Cards that Don’t Impact Your Personal Credit – Here’s how:  Make your Business a Separate Legal Entity by Incorporating

Have a meeting with your tax advisor or financial planner to determine which legal entity will best fit your small business and particular financial situation.

Incorporation can also help to protect your personal assets in the event of a lawsuit. Once your corporation or LLC is registered on your state’s Secretary of State’s website, you can then get a Business Federal Tax ID Number. So this way, you can open your business’s bank account

Get Business Credit Cards that Don’t Impact Your Personal Credit – Here’s how:  Get an EIN

The IRS makes it easy to do this. You can apply online as soon as you determine your eligibility.

  • Is your main business located in the United States or in U.S. Territories?
  • Does the person who is applying have a valid Taxpayer Identification Number (Social Security Number, EIN, or ITIN [Individual Taxpayer Identification Number])?

If so, then you’re good to go.

Get Business Credit Cards that Don’t Impact Your Personal Credit – Here’s how:  Start Business Checking and Savings Accounts

Have a conversation with your local bank about getting business checking and other accounts.

If you have been a loyal customer on the personal side, and you can show your small business pays its bills on time, then your bank will be a lot happier working with your business.

Get Business Credit Cards that Don’t Impact Your Personal Credit – Here’s how:  Apply for Appropriate Bills through Your Business

These are really any bills which are the direct responsibility of your company. They include everything from Wi-Fi in your business’s name to rent or a mortgage for your office space.

Your business could pay a cell phone provider or even the oil or gas bill, if that is appropriate.

Ask your utilities if they will report to the credit reporting agencies. If they will, then your company will see credit scores rise as you pay bills on time.

Click to download Credit Suite’s 12 business credit cards and credit lines business guide. Learn everything you need to know about getting the best credit cards for your business. via Credit Suite

Get Business Credit Cards that Don’t Impact Your Personal Credit – Here’s how:  Business Credit Building

The best way to keep your business credit cards from impacting your personal credit is to build business credit.

Small business credit is credit in a business’s name. It doesn’t tie to a business owner’s consumer credit, not even if the owner is a sole proprietor and the sole employee of the small business. Consequently, a business owner’s business and consumer credit scores can be very different.

Business credit is an asset which can help your company for many years to come.

The Benefits

Because business credit is distinct from individual, it helps to secure a business owner’s personal assets, in the event of legal action or business bankruptcy. Also, with two distinct credit scores, a small business owner can get two separate cards from the same merchant. This effectively doubles buying power.

Another benefit is that even startup ventures can do this. Heading to a bank for a business loan can be a recipe for frustration. But building small business credit, when done correctly, is a plan for success.

Personal credit scores are dependent on payments but also additional considerations like credit utilization percentages. But for small business credit, the scores actually merely hinge on if a business pays its invoices in a timely manner.

The Process

Establishing company credit is a process, and it does not happen automatically. A corporation has to actively work to establish corporate credit. Having said that, it can be done easily and quickly, and it is much more efficient than developing consumer credit scores.

Vendors are a big part of this process.

Accomplishing the steps out of order will lead to repetitive rejections. No one can start at the top with business credit. For instance, you can’t start with store or cash credit from your bank. If you do you’ll get a rejection 100% of the time.

Corporate Fundability™

A corporation has to be Fundable to credit issuers and vendors. Due to this fact, a company will need a professional-looking website and email address, with website hosting from a merchant like GoDaddy.

Also business telephone  numbers need to have a listing via ListYourself.net.

Also the business phone number should be toll-free (800 exchange or comparable).

A corporation will also need a bank account devoted purely to it, and it needs to have every one of the licenses necessary for running. These licenses all have to be in the precise, appropriate name of the small business, with the same small business address and phone numbers.

So keep in mind that this means not just state licenses, but possibly also city licenses.

Dealing with the Internal Revenue Service

Visit the IRS web site and obtain an EIN for the company. They’re totally free. Choose a business entity such as corporation, LLC, etc.

A small business can start off as a sole proprietor. But they will probably wish to change to a variety of corporation to reduce risk and make best use of tax benefits.

A business entity will matter when it comes to tax obligations and liability in the event of litigation. A sole proprietorship means the entrepreneur is it when it comes to liability and tax obligations. Nobody else is responsible.

Starting the Business Credit Reporting Process

Start with vendor credit.

Vendor Credit

First you need to build trade lines that report. This is also called vendor credit. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can begin getting retail store and cash credit.

These sorts of accounts tend to be for the things bought all the time, like shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first of all, what is vendor or trade credit? These trade lines are credit issuers who will give you starter credit when you have none now. Terms are typically Net 30, versus revolving.

So if you get an approval for $1,000 in vendor credit and use all of it, you must pay that money back in a set term, such as within 30 days on a Net 30 account.

Vendor Credit – It Makes Sense

Not every vendor can help in the same way true starter credit can. These are merchants that will grant an approval with marginal effort. You also need them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

Retail Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, then progress to retail credit.

Use the small business’s EIN on these credit applications.

Fleet Credit

Are there more accounts reporting? Then progress to fleet credit. Use this credit to purchase fuel, and to fix and maintain vehicles.

Bank Credit Cards

Have you been responsibly handling the credit you’ve gotten up to this point? Then move onto more universal bank credit cards.

These are commonly MasterCard credit cards. If you have more trade accounts reporting, then these are attainable.

Click to download Credit Suite’s 12 business credit cards and credit lines business guide. Learn everything you need to know about getting the best credit cards for your business. via Credit Suite

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and deal with any inaccuracies ASAP. Get in the practice of checking credit reports. Dig into the particulars, not just the scores.

We can help you monitor business credit at Experian, Equifax, and D&B for 90% less than it would cost you at the CRAs. Update the details if there are errors or the relevant information is incomplete.

Fix Your Business Credit

So, what’s all this monitoring for? It’s to dispute any mistakes in your records. Mistakes in your credit report(s) can be corrected. But the CRAs normally want you to dispute in a particular way.

Disputing credit report errors commonly means you precisely detail any charges you challenge.

Click to download Credit Suite’s 12 business credit cards and credit lines business guide. Learn everything you need to know about getting the best credit cards for your business. via Credit Suite

A Word about Business Credit Building

Always use credit smartly! Don’t borrow beyond what you can pay off. Monitor balances and deadlines for payments. Paying in a timely manner and in full will do more to increase business credit scores than pretty much anything else.

Building small business credit pays. Great business credit scores help a business get loans. Your lender knows the business can pay its financial obligations. They understand the corporation is authentic.

The company’s EIN links to high scores and lenders won’t feel the need to call for a personal guarantee.

Get Business Credit Cards that Don’t Impact Your Personal Credit – Takeaways 

Enhance the professionalism of your small business and keep your personal and business credit separate. 

Learn more here and get started toward getting the best business credit cards that don’t impact your personal credit.

About the author 

Janet Gershen-Siegel

Janet Gershen-Siegel is the seasoned Finance Writer and a former content manager at Credit Suite. She has been admitted to practice law for over 30 years, with a focus on litigation and product liability, and is a published author, with writing credits at Entrepreneur, FedSmith.com and BusinessingMag.com.

She has a BA in Philosophy from Boston University, a JD from the Delaware Law School of Widener University, and a MS in Interactive Media (Social Media) from Quinnipiac University.

She regularly writes for Credit Suite, which helps businesses improve Fundability™, build credit, and get approved for loans and credit lines.

Her specialties: business credit, business credit cards, business funding, crowdfunding, and law

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

Stay In The Loop

Subscribe to our weekly newsletter that delivers the most actionable, tactical, and timely business financing tips you actually want and need for Free
*Plus get instant access to the 3-part Fundability™ training - a systems that helps your business become more Fundable and makes you look great to credit issuers and lenders