Apply For Business Credit Cards Without Personal Guarantee

When it comes to business credit and the terminology used, it might be a good idea to get a bit of background information. You might be surprised to know that that the business you own has a credit score. It may also surprise you that you can use that score to secure financing like business credit cards without a personal guarantee. However, before you can go out and get new loans or lines of credit, it is worth mentioning that your business credit shares many of the same characteristics as a personal credit score. That means that you will need payment history as well as time for that score to be firmly established. The bottom line is that applying for credit with your businesses tax id number or EIN as opposed to your personal social security number can take some time.

An Industry Based on Business Credit

There is no shortage of information when it comes to building business credit. If you need proof, just go online and do a general search. You will find all sorts of e-books, and advertisements for companies that say they can help you build your business credit. The only problem is that you could end up lining their pockets and not helping your business credit one bit. You see, the entire business credit industry has changed dramatically over just the past two years. What worked then does not work today. Unless these companies and publications have stayed current in the industry, their information and services may add up to a big fat zero for you.

What They Won’t Tell You

You need to understand that a business credit is also called a Paydex score. This score is perhaps the most widely used and is issued by Dunn & Bradstreet; often regarded as the Experian of business credit bureaus. Now DNB does offer a program that will quickly build your businesses Paydex score to 80, which is roughly equivalent to a FICO of 680. This is the rub, however, and it is something that not even a well-respected bureau like Dunn & Bradstreet will tell you. That a Paydex score of 80 is not going to be enough to make a huge difference in getting cash lines of credit or other sorts of financing. The real player is the DNB Recommended Creditor Amount, and this is the real determinate in getting a line of credit. It can mean the difference in barely qualifying for a $100 office supply store card, or a $20,000 line of credit.

Yes, there are plenty of smaller businesses that can benefit from what certain credit building programs or services have to offer, but in most cases, it will just cost a business money and offer little to no results. While some would lead you to believe that an 80 Paydex rating or an Intelliscore are the bread and butter of business credit, the DNB Recommended Credit amount is what is going to get you your financing approval.

The reality is that there is so much misleading information regarding personal & business credit cards without personal guarantee, most of which is propagated by some companies that claim they can get your business the 80 Paydex score. While a creditor like an office supply store might offer you a respectable credit line, normally below $1000, you can forget about anyone offering your business a cash line of credit.

The bottom line that this magical Paydex score of 80 is fools gold. It will do nothing substantial for your businesses credit. The real test is your businesses recommended amount. It is the only thing that will have a substantial effect on your businesses ability to get credit and truly determine to creditors that your business is ready to stand on its own two feet. This is coming from experience because it is what our business does and has done time and time again.

Hire a Professional or Go it alone?

Now that you know that business credit is excellent means to provide your business with the proper cash flow, the decision now comes down to manner that your use to build your businesses credit rating.

The DIY Approach to Business Credit

You can do what we did. Search for the quality information that is all over the Web. This can be time consuming but with trusted resources like e-books, various reputable services and a fair bit of money, you should be able to improve your business credit score in a meaningful way. However, an easier way to do so is to simply purchase a guide to building business credit yourself for as little as $247.

The Professional Service

Having the experience that we have, you can easily sort out the services that you can trust and those that you cannot. What we look for in a service are three very important things. Firstly you will want a credit building service that has an impeccable BBB rating. Secondly, you will want a long list of satisfied clients. Lastly, you will want a solid guarantee that they will do as they have promised.

While many business credit-building services exist, we have only found one service that can meet and exceed these lofty expectations. In fact, we have never received anything other than glowing reports regarding this company’s service. This type of service is not cheap, but considering that they will guarantee that a $2000 investment will correlate to $150,000 in unsecured credit lines it is pretty much a no brainer and that sort of credit worthiness will help you to play with the big boys.