of this data for far too long. For now we will have all this on one page but will grow beyond that as we need to.
Building credit under a business vs your personal SSN is wildly misunderstood and overly complicated. The biggest difference is you are trading under a business name with an EIN (Employer Identification Number) also called a Federal Tax ID vs a SSN. This also means there is a separate list of credit reporting agencies (CRAs) for your business credit profile vs personal. If you want to better understand all the business credit bureaus and reporting agencies, start here.
If you are looking to form a new entity, the best deal I have found is Northwest, starts at just $39 here.
The easiest way to build business credit is to sign off on it, or be a personal guarantor, meaning you guarantee the loan/credit. You can start building credit that way immediately as long as you have a 640+ personal credit score.
We have an entire playlist covering building your business credit
If you have some datapoints/credit intel you would like to contribute, reach out to us!
Institution | Monthly plans | Reports As | Reports To Bureaus | Additional Fees/Notes |
---|---|---|---|---|
Self Inc | $25/24 months $35/24 months $48/12 months $150/12 months | Installment loan | All 3 | $9 admin fee 12.44%-15.97% interest rate/APR |
Credit Strong | $28/48 months $38/36 months $48/24 months | Installment loan | All 3 | $15 admin fee 15.51%-15.73% APR $1,000-$1,100 tradeline reported Instant approval |
Kovo | $10/24 months | Installment loan | All 3 | no credit check instant approval 0% interest/ $0 fee You're buying courses 30 day refund |
Kikoff | Revolving/Installment | Eq & Ex or Eq & Tu | no credit check 0% interest/ $0 Fees Reports $750 tradeline |
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Meetava | $21 p/m | Installment loan | All 3 | 12 month commitment, can't end early |
Loqbox | Installment loan | All 3 | 0% apr you pick amount |
And then intel on where business credit cards are pulling and where they are reporting. This seems to be the widely up for debate because there is so much conflicting data out there.
0-1% APY | 1%-3% | 4%-6% | 7%-9% | 10%+ |
---|---|---|---|---|
Basic Savings: National Average is 0.31% APY | ||||
Basic Checking: National Average is 0.17% APY | Top 1% of Checking Accounts are 2% APY | |||
Money Market Accounts: National Average is 0.50% APY | Top 1% of Money Market Accounts are 3.62% | |||
Dividend Stocks |
*CAPITAL ONE: Worth noting that with Capital one a few things have changed..
If you opened a Capital One Spark Cash Plus for business card on or after October 20, 2020, Capital One will NOT report all activity to personal credit bureaus- just negative activity. All other Capital One Spark for Business cards report ALL activity to your personal credit.