How to Get Business Credit With Bad Personal Credit

Getting a business credit card with bad personal credit is a real possibility for those with a legitimate business. In today's economic times, more people are opening their own businesses as traditional jobs downsize. This is a guide to the necessary steps to establishing business credit despite a personal poor credit report.

Difficulty: Moderately Challenging

Instructions

1. 
   Photo by liewcf.

   Before applying for any kind of business credit, you must have a legitimate business. Required documents include a business license, articles of incorporation, and an Employer Identification Number from the IRS.

2. 
   Photo by JOSE LUIS PELAEZ, INC.

   Good starter business credit cards that don't require a personal guarantee include those from Staples and Office Depot. Apply for one or both of these, and if necessary fax any requested documents.

3. 
   Photo by JOSE LUIS PELAEZ, INC.

   Charge small purchases on your new business credit card or cards, and pay more than the minimum payment for at least two months. It is preferable to use a business checking account to pay credit card bills, but online payment services through Staples and Office Depot do allow you to use your personal account to pay your bill.

4. 
   Photo by JOSE LUIS PELAEZ, INC.

   Once you've had your Staples and/or Office Depot business credit card for a few months, begin applying for other cards at other retailers such as Wal-Mart, Home Depot, and gas stations.

5. 
   Photo by Christopher Robbins.

   After about six months of on-time payments, you can then start applying for regular MasterCard and Visa business credit cards through banks such as Citibank.

Tips & Warnings

• If your business is not listed with 411, contact your phone company to ensure it is listed with directory assistance. This makes verification of your business for credit purposes much easier.
• Always pay your business credit bills early or on time. One day late is a negative mark on any business credit report.
• Never use a P.O. Box or mail box service for a business address, as it will get you red flagged in credit systems.
• Do not apply for too many cards at once. Patience is key in building a business credit file.

Resources

• Staples Credit Center
• Office Depot Business Credit Account

[howsitdone]

on 2/24/2009 Great advice

[static404]

on 2/17/2009 Very interesting article. Well written.

[healthymomof5]

on 2/4/2009 Nice article!5*

[cherry67]

on 1/27/2009 interesting

[lizsto]

on 1/27/2009 Great tips...thanks!