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    10 Replies Latest reply on Sep 29, 2008 10:28 AM by jesse5621

    EIN and Business Charge Card

    Excellent Adventurer

      I recently applied for a business charge card. Per my accountant, I was told I could apply for the card under my EIN. I was asked for my social security number as well, which I gave. I have an above average credit score (according to Experian) but I was denied a business charge card. I'm confused as to why I was refused when my personal credit is above average. Does this make sense?
        • Re: EIN and Business Charge Card
          DomainDiva Ranger
          Credit scoring has changed the magic number is now 750, it was 730. Perhaps you were denied credit because you do not have a credit history with that EIN as well as the bank/credit card company you applied with. Applying for business credit with a bank or credit card company that you are already doing business with gives you a huge edge.

          Your debt to equity ratio may also have been affected if the credit line had been approved. You can request an in-depth explanation of the denial.
          • Re: EIN and Business Charge Card
            Lighthouse24 Ranger

            An "above average" credit score isn't necessarily the same as a "good" credit score. Other things that could have affected the decision are negative information on your credit reports or having a substantially higher average personal debt-to-income ratio in the past year than you did in years before.

            Did you apply for the card through the bank at which you opened your business checking account? If not, try there -- and if so, ask your banker for the explanation of why you were turned down and what you need to do to get a business credit card.

            And that seems like a nice segue to the "Get to Know Your Banker" story I posted on this site:

             

            Get to Know Your Banker
            • Re: EIN and Business Charge Card
              CorpCons08 Ranger
              Excellent,

              Business charge cards no longer look at a credit score in its entirety.
              As many of the members of this community have noted, negative items on your credit report will effect their decision.
              The other thing is, if you have any kind of public records on your credit report.
              Many people forget to check this section of a credit report.
              With identity theft being on the rise, you want to monitor this closely to make sure nothing is sitting in there.
              Banks also want to see that your business has some time in operation.
              Being that your business is new, they may not qualify you for the program you applied for.
              You should speak to the bank in question and ask them if they have a "new small business" credit card.
              These cards are designed for people in business for less than 2yrs.

              Best wishes for a safe and happy new year.

              CC08
              • Re: EIN and Business Charge Card
                jesse5621 Newbie
                Hello,

                Something similar just happend to a client and after 2 days of researching, talking to the bank, and reviewing her excellent credit it turned out
                that it was the bank. Currently, many banks a restructuring their loan policies among other products and that may cause them to decline. I would
                move on to a bank that you know is not going to have issues...

                Hope this helps.

                Jess