Qualify For Corporate Credit Cards Without Personal Guarantee

Corporate credit is essential for many new businesses and for those that are currently operating. Businesses with a good loan score can qualify for higher business loans, vendor loan and corporate credit cards without personal guarantee. Most small businesses, unless they have an established line of business credit, often link their personal and business accounts together. A personal guarantee is often required for business credit cards, loans and some vendor accounts when a business is new, without established trust in future payment or has a low credit rate.

Businesses without established surplus cash will have to use the owner's personal credit score when it comes to applying for credit cards or loans. Business owners with a low FICO score that apply for a credit card or loan may be approved with a low extension line or at times even denied loan. For owners with bad assets, obtaining any kind of business capital outlay is nearly impossible. In order to create a financially fit business, emphasis must be placed on building business credit. Business loan is based on a Paydex score, which is similar to the FICO score used in personal loan. The Paydex score takes into account the number of revolving accounts and whether they are paid on time or defaulted. Late payments and defaulted accounts negatively affect a business's credit.

In order to obtain an extension for a business should start out by applying for an Employer Identification Number or tax ID number. This a clear separation from personal social security number of the owner and that of the business and officially makes it a separate entity of its own. It also allows a business owner to then use the EIN number for the business to establish surplus cash lines. Once an tax ID number is obtained, the next step is to establish a few small lines of loans to help build up a good Paydex score.

One thing to keep in mind is that paying debts on time does not improve your loan points if the creditors do not regularly report the payments and account status to the capital outlay bureaus. Make sure that the vendor or bank that supplies the business assets reports the account to the capital outlay bureaus including Equifax, Experian and Dun & Bradstreet. One or all of these companies are used by credit card and loan companies when reviewing a business loan application. By establishing several revolving accounts and keeping them current, a business can greatly improve its extension rate. With a good Paydex score, a business can easily obtain credit cards and loans with having to personally guarantee the loans. Eligibility will be based solely on the extension score of the business.