Charging business items on personal CC?

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Bilttrucks
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Charging business items on personal CC?

Postby Bilttrucks » Sat Aug 27, 2016 2:50 am

I have a friend that owns his own small business, but has bad credit. His customers tend to pay him cash upfront when he needs to order parts for them. Up to this point he uses his bank card when ordering those parts since he can't get a CC with enough of a starting CL to do him any good. My question is, if he gives me the cash and I start ordering and paying for the parts with my CC will my CC company have a problem with this? The only reason I was thinking about doing this was for the free points.


Tubpbs
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Re: Charging business items on personal CC?

Postby Tubpbs » Sun Aug 28, 2016 10:01 am

Bilttrucks wrote:I have a friend that owns his own small business, but has bad credit. His customers tend to pay him cash upfront when he needs to order parts for them. Up to this point he uses his bank card when ordering those parts since he can't get a CC with enough of a starting CL to do him any good. My question is, if he gives me the cash and I start ordering and paying for the parts with my CC will my CC company have a problem with this? The only reason I was thinking about doing this was for the free points.


It depends on a lot of things, but if you start running an close equivelant of what you reported your total income to be through your card, a lot of lenders will notice and not like it.

Let's say you said you make 50K a year, and you run 40K through your card, some lenders will see that as a problem as its theoretically impossible for someone to do unless they have savings of some magnitude.

Some lenders might not notice or might not care if they do, but others might.

Probably not the best idea for other purposes in my opinion anyway...
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Bilttrucks
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Re: Charging business items on personal CC?

Postby Bilttrucks » Sun Aug 28, 2016 4:49 pm

Tubpbs wrote:
Bilttrucks wrote:I have a friend that owns his own small business, but has bad credit. His customers tend to pay him cash upfront when he needs to order parts for them. Up to this point he uses his bank card when ordering those parts since he can't get a CC with enough of a starting CL to do him any good. My question is, if he gives me the cash and I start ordering and paying for the parts with my CC will my CC company have a problem with this? The only reason I was thinking about doing this was for the free points.


It depends on a lot of things, but if you start running an close equivelant of what you reported your total income to be through your card, a lot of lenders will notice and not like it.

Let's say you said you make 50K a year, and you run 40K through your card, some lenders will see that as a problem as its theoretically impossible for someone to do unless they have savings of some magnitude.

Some lenders might not notice or might not care if they do, but others might.

Probably not the best idea for other purposes in my opinion anyway...


Thank you for the reply, that makes sense.



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