Since I created an LLC, I’ve gotten alot of credit card offers for the LLC. If I apply for the credit card and use it, does it build credit for the LLC? What are the pros and cons here?
Thanks for the help!
I don’t think so. I have a credit card in the name of my LLC but when I applied for it, they made me use my personal SS# instead of my tax id for my LLC. Unless yours is different, it just is effecting your personal credit not your LLC’s.
You probably need to get set up with a Dun & Bradstreet profile, I believe there are a few other agencies that report business credit. I think one of the others is Paydex.
You have to have at 5 accounts in order to get a business credit score. Make sure you have a EIN number so the credit will be attached to your LLC. Once you have successfully open 5-6 accounts and have kept them in good standing, you should then have a paydex score for your business. Creating a Dun and Bradstreet profile is extremely helpful. They will offer you there products which are optional.
Once your business establishes as strong paydex score more and more company won’t require your SSn on applications
I broker business lines and they have proven to do wonders for business owners needed extra capital.
Hope this helps
Jaz
I have a few business cards (for an LLC w/ FIN) and none of them have ever shown up on my personal credit report. (Of course, if I got behind on payments or defaulted, I believe they would show up on my personal report).
I’m assuming (but am not sure) that these accounts are being reported to my business credit profile, but haven’t ever checked.