I personally have bad credit and want to know how credit works once I start a small online store. would I be able to get credit cards based on the stores credit or my own? How does a business gain credit? How do you get a business credit card?I guess these are my 3 major questions with minor ones that clarify them more maybe. Hope this is clear enough. StLRook

I have an S corp and as the sole employee I applied for a business credit card through my bank and they based it on my credit. My business was new so that may have had something to do with it.

I've had the card for 6 months now, so maybe it's building my business' credit -- I don't know.

I know there are sites offering credit to small businesses -- proceed at your own risk!

Have you looked into how to go about repairing your own credit just to get that out the equation?

Diane

The business writer who helps people grow their small business
http://www.BouncePublishing.com

Yes. I looked into getting my credit better. I paid of a car I was behind on and also bought a van with cash worth around 11k. I think that helps it. I have a problem were I can't have a credit inquiry without it being for me aplying for a product. Some kind of block I put on it when I was 18 or something. Thats what I was told from a credit place who was trying to help me consolidate items. StLRook

With credit for any small business, a lender looks to the individual's credit rating. You might want to consider a prepaid card where you put $5,000 or $10,000 into the card account, and then when you use the card, you are in effect drawing down against that existing balance.

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Gordon

I don't think paying cash for a van affects your credit. If anything it would hurt it, just like having credit cards and not using them.

Contact the three credit agencies (Equifax, et al) directly and have them remove whatever block you put on it. It was probably an anti-theft thing.

They'll probably send you recent copies of your credit report. Go over it and make sure any account that is closed says "Closed By Consumer" (you'll have to write to each store and tell them to report it that way). Make sure all the info is accurate. This will help you start getting your credit rebuilt.


Diane

The business writer who helps people grow their small business
http://www.BouncePublishing.com

Buying anything with cash doesn't affect your credit at all. Taking out a loan for the car and making steady payments on it would. Then again, taking out a loan and making two payments of $5500 wouldn't really do much to your credit as it shows you didn't really need the loan.

I thought it might help my credit getting the van cause it is equity that I have. I am renting a house so dont think I have much to loan based on.