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4 Replies Last post: Feb 17, 2009 4:57 PM by Phantom458

What is the purpose of using an EIN vs. Social Security number for charge card?

Dec 11, 2007 2:35 PM

Click to view Excellent's profile Mogul Excellent 46 posts since
Oct 12, 2007

My business is an LLC and I was told that when I apply for a company charge card that I should use my EIN rather than my social security number. What is the difference between using either of them when applying for a company credit card?
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Click to view CorpCons08's profile Mogul CorpCons08 1,128 posts since
Nov 14, 2007
1. Re: What is the purpose of using an EIN vs. Social Security number for charge card? Dec 11, 2007 2:38 PM
in response to: Excellent
Using your EIN allows for you to continue to build business credit; that is why the recommendation.
It has nothing to do with approval, as that will still be based off of your personal credit history.

Regards,
CorpCons08
Click to view NatOnline's profile Mogul NatOnline 670 posts since
Oct 10, 2007
2. Re: What is the purpose of using an EIN vs. Social Security number for charge card? Dec 11, 2007 3:27 PM
in response to: CorpCons08
So would the account report to just your business credit report, or also your personal credit report?
Click to view CorpCons08's profile Mogul CorpCons08 1,128 posts since
Nov 14, 2007
3. Re: What is the purpose of using an EIN vs. Social Security number for charge card? Dec 11, 2007 3:33 PM
in response to: NatOnline
It often times depends on the creditor.
Most will report to the business credit to help build a stronger credit history for you.
If you are late or default, then you best realize that your personal credit will be hit too.
Click to view NatOnline's profile Mogul NatOnline 670 posts since
Oct 10, 2007
4. Re: What is the purpose of using an EIN vs. Social Security number for charge card? Dec 11, 2007 3:42 PM
in response to: CorpCons08
Great info thanks CorpoCons08
Click to view majones's profile Authority majones 18 posts since
Dec 10, 2007
5. Re: What is the purpose of using an EIN vs. Social Security number for charge card? Dec 11, 2007 3:45 PM
in response to: Excellent
It's basically the difference between identifying yourself (social security number) or the corporation (employer ID number). When you use the EIN of the corporation, you allow the corporation to build its own credit and stand alone as a business entity. Whenever you use your SSN, it's tied to you individually, not the corporation.
-M
Click to view CorpCons08's profile Mogul CorpCons08 1,128 posts since
Nov 14, 2007
6. Re: What is the purpose of using an EIN vs. Social Security number for charge card? Dec 11, 2007 3:48 PM
in response to: NatOnline
You are very welcome Nat. :)
Click to view CorpCons08's profile Mogul CorpCons08 1,128 posts since
Nov 14, 2007
7. Re: What is the purpose of using an EIN vs. Social Security number for charge card? Dec 11, 2007 3:48 PM
in response to: majones
Precisely, however, you must understand that almost all business credit cards have a personal guarantee requirement which means reports will be made to your personal credit as well if you miss payments or default on the card.
Click to view dtominus's profile Mogul dtominus 109 posts since
Jun 3, 2008
8. Re: What is the purpose of using an EIN vs. Social Security number for charge card? Jun 6, 2008 12:46 AM
in response to: Excellent
What type of business are you in, Imay be able to give you a loan for
cash flow
stocking

email me at dtominus@yahoo.com or 727-545-9530

Thanks
David Tominus

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