lovebug5 Posted January 17, 2008 Report Share Posted January 17, 2008 So I got into a conversation with a friend the other day about how I was repairing and rebuilding my personal credit, but I had yet to take out any small business credit for my company. After much thought and debate, and with my current scores, we came to the conclusion that I needed to begin building small business credit as well......Needless to say, I applied for the Capital One Small Business Platinum card and basically expected an approval. When I applied for my personal Capital One card, they pulled TU and approved me for a pretty decent CL with a 12-month 0% APR promotion. I use my card monthly and PIF monthly, etc.Well I was denied - after they pulled all 3 CR's. I received my letter in the mail yesterday and laughed pretty hard. It was nice to finally have denial reasons that aren't necessarily revolving about how bad your credit is:Based on the CR from TU for XXXX, there is insufficient credit history.Based on the CR from TU for XXXX, revolving account balance(s) are too low.Based on the CR from EX for XXXX, the number of accounts with high limits in relation to the total number of accounts is too low.Based on the CR from EQ for XXXX, credit limit(s) are too low.LMAO. So now instead of being denied because of negative items on my CR, I'm being denied because I have low utilization and not enough credit. Link to comment Share on other sites More sharing options...
isislc Posted January 18, 2008 Report Share Posted January 18, 2008 Ok this is too funny. But you gotta think about it, it does give credence to some of the debates between pif and keeping a balance. Some financial advisors actually recommend keeping a balance instead of paying your cards off because it demonstrates your ability to pay. Especially when you can pay consistently, high amounts at the same time every month. I know a couple of my cards look for that. Link to comment Share on other sites More sharing options...
willingtocope Posted January 18, 2008 Report Share Posted January 18, 2008 I think this is just another example of the different FICO scoring models kicking in.You qualify for a personal card based on the "here's a consumer sucker that CCs will make money charging penalty and interest" score...But you don't qualify for a "business" related but personally guranteed card using the "here's a small business that going to run lots of money through the account and pay us interest monthly" score... Link to comment Share on other sites More sharing options...
lovebug5 Posted January 18, 2008 Author Report Share Posted January 18, 2008 Yep. Kinda sucks, doesn't it?I refuse to carry a balance on any of my cards, which is why I PIF them every single month. To me, using my credit wisely isn't carrying a balance and paying interest that I don't have to pay. If I don't have the money to purchase something, I won't purchase it. Flat out. I got myself into debt by doing that and I refuse to do so again. So for lenders like WaMu who gave me a pretty generous CL to start ($2,500), using 50% of my limit on a monthly basis and PIF'ing every single month is the reason why they've already offered me a CLI. Link to comment Share on other sites More sharing options...
Magdalen77 Posted January 19, 2008 Report Share Posted January 19, 2008 Yep. Kinda sucks, doesn't it?I refuse to carry a balance on any of my cards, which is why I PIF them every single month. To me, using my credit wisely isn't carrying a balance and paying interest that I don't have to pay. If I don't have the money to purchase something, I won't purchase it. Flat out. I got myself into debt by doing that and I refuse to do so again. So for lenders like WaMu who gave me a pretty generous CL to start ($2,500), using 50% of my limit on a monthly basis and PIF'ing every single month is the reason why they've already offered me a CLI.I've been doing that Chase since I got. I love the double cash back for the first two billing cycles (10% for BP gas, 4% for dining and entertainment, 2% for everything else). I've been using the heck out of it, while still trying to keep my utilization reasonable. It's just a $1000 limit. I've already paid it twice and I haven't even gotten my first bill. By the time the first bill rolls around I'll still have $100-200 on it. I've already paid $775. The thing is my cash just sits in the bank until I pay. I don't charge up the cards and spend the cash. That's how I got into trouble the first time!! Link to comment Share on other sites More sharing options...
Magdalen77 Posted January 19, 2008 Report Share Posted January 19, 2008 I guess now I have to start using Wal-Mart and Target if I ever want to get a CLI on them. I'll have to figure out something I need there. I just hate buying something just to use the credit card. If we had Wal-Marts here like people do down South or out in the more rural parts of PA, it would be wonderful, but we just have plain old little Wal-Marts, no Supers. And Target is even worse, though I think there's a Greatland about 10 miles away. Link to comment Share on other sites More sharing options...
merkurfan Posted January 19, 2008 Report Share Posted January 19, 2008 use walmarts site to store. Also keep in mind, walmart is running 12 month 0% till the end of the year! just pay it off before the 12 months is up or your paying all the back interest. Link to comment Share on other sites More sharing options...
brokeinok Posted January 19, 2008 Report Share Posted January 19, 2008 Have you considered trying to get a loan through the Small Business Administration? You'd have to check into whether they report to the CB's but I would assume they do. I know that they have some government loan programs for "women run" businesses as well. Might check into that to build up your "business credit history". Link to comment Share on other sites More sharing options...
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