Q&A: I have bad credit – if I open a new business, can I apply for a credit card that has “fresh credit”?
Question by mobyisaparrothead: I have bad credit – if I open a new business, can I apply for a credit card that has “fresh credit”?
I have bad credit history – if I open a business, and apply for a credit card, will they still pull my credit and still decline me, or will they issue a new credit card under the new entity (new business?)
Also, if they do issue this new card, will good credit history of payments ever be reflected to my personal credit history if the payments on time are done under the business name’s credit card?
Best answer:
Answer by annazzz1966
Business credit is just for the business entity and not for your personal use. Any credit opened in the name of the business will remain in the name if the business and not become a part of your personal credit history.
Know better? Leave your own answer in the comments!
Bad credit is bad credit, and it will stay with you until you clear it, and then for 7 years.
You have to built up your credit. and need some kind of security deposit for The credit line of the new business. but after a year of a good standing account you should get back your security deposit.
A bank would require a personal guarantee on a business loan when the business doesn’t have credit history. Ultimately the owner of the business (you) is responsible for how the money is spent and they want to be sure they will be paid back.
To answer the second portion of your question…Yes, the credit history would show on the owner’s credit bureau.
Hope this helps.