I’ve had my LLC running for a year and a half.
I just inquired about a Credit card through Menards. (Regional home improvement chain)
The app said I need personal guarantee for businesses less than 2 yrs old. Main reason I want the card is to build credit, but I’d also like to use it to short-term finance a Reno in a couple months.
What type of hit will my personal score take if I guarantee this card?
(Right now 700-720:debt to credit issue is main thing cited for improvement)
Are there other cards/credit building sources available to me w/o personal guarantee?
I think you need to consult with someone who really understands how to build credit.
Your personal FICo never takes a hit when you get a credit card. Only if you apply for a bunch at once, or miss a payment or run it up to the limit.
The process of building business credit with your LLC is very different than with a personal account. Businesses don’t build FICOS the same. Having a Menards credit card will not really help build credit to get a mortgage. What a business needs is operating strength to “build credit”. You need to show a mortgage lender several years of consistent revenue and profits in the same business. Collateralized lines of credit can help too.
The reality is that you will need to personally guarantee your LLC credit for years to come.