My Spark 2% Card Reports on Personal Credit. What to do?

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lionfleet
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My Spark 2% Card Reports on Personal Credit. What to do?

Postby lionfleet » Tue Jul 19, 2016 12:02 am

Hey guys!

Need some advice. I applied to get the Capital One Spark 2% Cash Back Card and I was recently informed that they report each dollar you spend on your business to your personal credit report. So if you need to use it many times and pay it off you will have a very high credit card utilization and your credit will go DOWN!!!
So needless to say it arrived in the mail and I'm wondering what to do. Here's the choices I've thought up:
Option #1: I close acct immediately without spending anything on it.
Option #2: The Captial One Spark Card gives you a $250 reward if you spend a certain amount of money in 3 months. I could easily do that but I don't know if spending on it will hurt credit score. I could get the reward and then close the account.

What do you feel is best? Or is there another option? There's another comparable 2% card from Citi that doesn't report on your personal credit report and is actually a better deal... I'd like to get that one.
Any thoughts are appreciated! Thank you! :)


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Vattené
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Re: My Spark 2% Card Reports on Personal Credit. What to do?

Postby Vattené » Tue Jul 19, 2016 1:35 pm

Welcome to the forum!

Under normal circumstances you really shouldn't need to worry about utilization too much, at least on an ongoing basis. There are a couple of caveats, however. Is there a reason you need to actively manage your credit score and get every point out of it you can? Such as a mortgage you intend to apply for soon? Also, what is the credit limit and/or utilization you expect to run? If you are anticipating a big credit need in the near future or your limit and expected usage is such that it will look like you're always maxed out, that may change things.

No matter what you do you've already taken an inquiry, an AAoA hit, and this account will be reported on you for 10 years, even if you close it today. At the very least you should get the $250 bonus. Personally, I'd keep the account and accept that it will be reported on my personal credit profile (and try to increase the limit over time, as well). You can manipulate your utilization by making payments before the account balance gets reported on you, too. To me, it wouldn't be worth it to open up a new account (which will also make one's credit go down in the short term) just to avoid having this account report on my personal credit.
-Vattené
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lionfleet
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Re: My Spark 2% Card Reports on Personal Credit. What to do?

Postby lionfleet » Sat Jul 23, 2016 12:20 am

Thank you so much for responding!!!! You are AWESOME!
To answer your questions...
I'd use this card for my business and I spend a lot of money... thousands of dollars a month on advertising. I do pay off my cards full balance every single month without fail. One problem is that the card is at $7,500 limit. I spend much more than that a month so and I'd need to raise the limit to 40-50k or so. I don't know they'd be willing to boost it that much but that's what I'd need to make it ideal as I don't want to switch out credit cards to pay for advertising.

I've heard that because it reports to personal that if your spending a lot your credit score could get dinged. Some people in reviews reported their credit dropping 30 to 50 points. And apparently they don't just report when you don't make payment but really they always take into acct your credit utilization?
I would like to jump into real estate, possibly buy a house soon.

The Citi card on all accounts looks like a better card. No annual fee. Wish I would have gone with that card and tried to get higher limit.
Anyways, I appreciate your input. Let me know what you think is best! :)

Tubpbs
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Re: My Spark 2% Card Reports on Personal Credit. What to do?

Postby Tubpbs » Sat Jul 23, 2016 2:58 pm

lionfleet wrote:Thank you so much for responding!!!! You are AWESOME!
To answer your questions...
I'd use this card for my business and I spend a lot of money... thousands of dollars a month on advertising. I do pay off my cards full balance every single month without fail. One problem is that the card is at $7,500 limit. I spend much more than that a month so and I'd need to raise the limit to 40-50k or so. I don't know they'd be willing to boost it that much but that's what I'd need to make it ideal as I don't want to switch out credit cards to pay for advertising.

I've heard that because it reports to personal that if your spending a lot your credit score could get dinged. Some people in reviews reported their credit dropping 30 to 50 points. And apparently they don't just report when you don't make payment but really they always take into acct your credit utilization?
I would like to jump into real estate, possibly buy a house soon.

The Citi card on all accounts looks like a better card. No annual fee. Wish I would have gone with that card and tried to get higher limit.
Anyways, I appreciate your input. Let me know what you think is best! :)


I, personally, would close my business accounts if they reported on my personal credit (or just not use them I guess). To me, that makes them relatively useless. Businesses and people have different credit needs and credit behavior for a thousand different reasons.

That is an incredibly odd maneuver for Capitol One to pull. I don't understand it. I'm also very surprised this is the first time I've heard about it.

Keep us posted on any changes or ideas that come up.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

lionfleet
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Re: My Spark 2% Card Reports on Personal Credit. What to do?

Postby lionfleet » Tue Jul 26, 2016 11:35 pm

Thanks for the help guys. So far it looks like theres two options.

Option #1 is to close the account (that I just opened)... however, it will get reported to my credit.
Option #2: Spend $4500 in 3 months to get the $500 bonus and then never use the card again. Maybe close it years into the future. Would $4500 on the card hurt my personal credit? I don't carry big balances and always pay on time.

From the people that replied.... One vote says to to do option #1, and the other vote goes to option #2.
Which is best?

takeshi
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Re: My Spark 2% Card Reports on Personal Credit. What to do?

Postby takeshi » Wed Jul 27, 2016 4:24 pm

lionfleet wrote:I was recently informed that they report each dollar you spend on your business to your personal credit report.

Source?

Tubpbs
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Re: My Spark 2% Card Reports on Personal Credit. What to do?

Postby Tubpbs » Wed Jul 27, 2016 4:29 pm

takeshi wrote:
lionfleet wrote:I was recently informed that they report each dollar you spend on your business to your personal credit report.

Source?


Yea. That's pretty important. Has it actually reported?? Do you have any other planned credit needs in the near term? If not, you might as well find out either way. Utilization has a temporary effect on your credit anyway...
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

lionfleet
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Re: My Spark 2% Card Reports on Personal Credit. What to do?

Postby lionfleet » Wed Aug 03, 2016 10:02 pm

I have good credit and am planning on buying a duplex or fourplex and renting out this year.

regarding the source.... Somebody on a review website posted:
"Beware, beware, beware !

This is not a business card in fact.

I learned that when my credit score suddenly dropped down 50 points.
Credit card issued for LLC company became....my personal debt !
Capital One responded that this is their 'normal practice'.
Don't be surprised if you would be denied when you apply for a credit, the reason
may be Capital One which make you responsible for LLC debts."

Another comment:

"This is not common at all, there was a credit card issued to corporation and credit was checked as 'deep' which directly affected my score.
It is not common neither that credit card is assigned to a person which make me responsible for all company debts, even made by my associates .
Don't tell me that your CEO has business card which is reported to agency as his personal debt !
I have other business cards (Amex Gold, Amex Plum, Chase - VISA, Chase- Master, Bank of America - Visa) - and NONE of them is assigned to my personal credit report.
And THIS is common, they apparently know what LLC means.

Otherwise my debt would be $300k more....

Anyway, my intention is warn any potential business user of this card.
It should be advertised as follow :
"This is credit card only for perfect credit score bearers. When we issue it for you - say goodby your excellent score !!!"

Tubpbs
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Re: My Spark 2% Card Reports on Personal Credit. What to do?

Postby Tubpbs » Thu Aug 04, 2016 9:16 am

lionfleet wrote:I have good credit and am planning on buying a duplex or fourplex and renting out this year.

regarding the source.... Somebody on a review website posted:
"Beware, beware, beware !

This is not a business card in fact.

I learned that when my credit score suddenly dropped down 50 points.
Credit card issued for LLC company became....my personal debt !
Capital One responded that this is their 'normal practice'.
Don't be surprised if you would be denied when you apply for a credit, the reason
may be Capital One which make you responsible for LLC debts."

Another comment:

"This is not common at all, there was a credit card issued to corporation and credit was checked as 'deep' which directly affected my score.
It is not common neither that credit card is assigned to a person which make me responsible for all company debts, even made by my associates .
Don't tell me that your CEO has business card which is reported to agency as his personal debt !
I have other business cards (Amex Gold, Amex Plum, Chase - VISA, Chase- Master, Bank of America - Visa) - and NONE of them is assigned to my personal credit report.
And THIS is common, they apparently know what LLC means.

Otherwise my debt would be $300k more....

Anyway, my intention is warn any potential business user of this card.
It should be advertised as follow :
"This is credit card only for perfect credit score bearers. When we issue it for you - say goodby your excellent score !!!"



1. Those comments are both unintelligible...they seem more like rage driven rants than helpful information.

2. Neither post explicitly says that they report to your personal credit. They say that they RELY on your personal credit, which all of these small business cards will unless you're working for a massive corporation. The cards are all personally guaranteed by the applicant and are approved or denied based off of his or her personal credit as you seem to know.

3. I don't know what those posts really mean to be honest with you.

I think you need to just wait and see for yourself...

Those posts should not be relied upon in my opinion. I certainly wouldn't rely on that information myself.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It



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