Building business credit; Build your credit with your EIN

Business Credit is credit that is obtained in a Business Name, with business credit the Business builds its own credit profile and credit score and with an established credit profile and score, the business will then qualify for credit. This credit is in the business name and based on the business’s ability to pay, not the business owners since the business qualifies for the credit, in some cases there is no personal credit check required from the business owner. The business can use its credit to qualify for revolving store credit cards like Staples, Lowes, Sam’s Club, Costco, BP, Wal-Mart, even MasterCard, Visa, and AMEX. The business can also qualify for credit lines and loans. A credit profile can be built for a business that is completely separate from the business owner’s personal credit profile. This gives business owners DOUBLE the borrowing power as they have both Personal and Business credit profiles built. Business credit scores are based only on whether the business pays its bills on time. A business owner can obtain credit much faster using their business credit profile versus their personal credit profile. Personal Credit Scores are based on 5 factors : Payment History 35% Utilization 30% Length of Credit History 15% Accumulation of New Credit 10% Credit Mix 10% Dun & Bradstreet’s Business Paydex Score are based on Payment History: Expect payment may come early 100 Payment is prompt 80 Payment comes 14 days beyond terms 70 Payment comes 21 days beyond terms 60 Payment comes 30 days beyond terms 50 Payment comes 60 days beyond terms 40 Payment comes 90 days beyond terms 30 Payment comes 120 days beyond terms 20 Approval limits are much higher on business accounts versus personal accounts. Per SBA, credit limits on business cards are usually 10-100 times higher than consumer credit. for the complete article see: http://www.anglefinancialservices.com/blog/build-your-credit-with-your-ein