Business credit card limit

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mralex2016
 
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Business credit card limit

Postby mralex2016 » Fri Jul 01, 2016 1:13 pm

For most business owners when applying for business credit cards, what's the most common credit limit for a lender to start you out at with a 750-800 credit score?


Tubpbs
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Re: Business credit card limit

Postby Tubpbs » Fri Jul 01, 2016 3:46 pm

mralex2016 wrote:For most business owners when applying for business credit cards, what's the most common credit limit for a lender to start you out at with a 750-800 credit score?


There's no way anyone could answer that question without a heap of additional information about your business and personal profile.

Credit scores are good though...
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

im_mr_awesome
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Re: Business credit card limit

Postby im_mr_awesome » Thu Jul 21, 2016 4:19 pm

This depends on the card, the issuer, the business, the business owner, and a lot of small factors added together. Overall for Small Business, it works like personal credit. For corporate, it's a little bit different.

If you're a small business owner (less than 1m/year), and you apply for a Capital One spark, or Chase Ink, or Amex Business, you'll most likely be going off your personal credit, and the limit will likely be determined by the limits on your other cards, combined with business income and personal credit history. I'll tell you that Capital One asks for business revenue, and otherwise is exactly like a personal application. I'm not sure what the limit would be, as I didn't apply.

If you're over the 1m/year mark, you will be probably looking at corporate cards, like the Amex Corporate cards my company hands out. Ours are all charge cards, and I asked a VP if he knew the spending limit. He said he'd never hit it even when paying for 20 person trips, so I imagine it's in the several 10's of thousands, if not hundreds of thousands. This would be based on revenue, and since we're part of a several billion/year company, I can't imagine it's low. I doubt you're in this scenario if you're asking on a forum, though.

TL;DR - same as you would get if applying for a comparable credit or charge card as an individual, but without details about your file, we can't guess.
Scores on the mend...
FICO: 654 (7/2017, AMEX), Vantage: 663 (CK)
Cards I Use Amex Premier Rewards Gold, Discover IT, Capital One QuickSilver MC, Amex Gold Delta (for the free bag)
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takeshi
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Re: Business credit card limit

Postby takeshi » Fri Jul 22, 2016 10:05 am

mralex2016 wrote:For most business owners when applying for business credit cards, what's the most common credit limit for a lender to start you out at with a 750-800 credit score?

Your question relies on a flawed assumption. Scores and limits aren't directly tied like that. First of all, there are many scoring models that are used by creditors in the decision to approve credit cards, assign limits, etc. A 750-800 with one model may not be the same thing as a 750-800 with a different model.

On top of that, it's not just about score. Each creditor has its own underwriting criteria that are used to determine approval, limit, APR, etc. These criteria can even vary from product to product. So the criteria is not the same for all creditors and products. Assuming you could run a test where you applied for multiple products without having one application impact another (which is impossible) you'd potentially see different limits from different creditors/products. Creditor/product A isn't necessarily going to extend you the same amount as creditor/product B. They may be coincidentally similar but coincidence and causality are not the same thing.

You can try to use resources like the Credit Pulls Database but you need to keep in mind that score is just one consideration. Realistically, there's no way to find out until you apply. We can certainly try to guess but all we can provide are guesses.



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