Thanks
Originally posted by
@Chris Baber:
I've been studying this subject a lot lately. here's what I've learned and done so far.
I created my Corporation on 6/1/18 (3 weeks ago).
I got my free EIN from the IRS on the same day.
I got my Free DUNS number from Dunn & Bradstreet (I paid $45 to expedite that number, as I'm trying to move fast on all this; it's not required. do NOT buy the D&B program they will try to sell you to set up your credit or whatever BS they tell you. it's a waste of money.)
I rented a virtual office to have a legal business address, which many companies want to see. A PO Box is an instant denial in almost all cases. A Mailboxes etc type address that looks like a real address is just as bad. You MUST use a real address for your business. Home address is better than other options, but a virtual address is the best option if you don't really have your own commercial business address.
IMPORTANT!!!
Make sure your address, phone numbers, etc all match across all business documentation. If your address shows as 123 Main St Ste 100 with the IRS on your EIN, make all your other documents use the same address. Don't use 123 Main Street, Suite 100 - all spelled out. Much of business credit (and personal too) is processed by computers and if they don't see your address matches, you will likely be denied.
Get your business number listed on 411 business. Do NOT use a home phone number for your business. (Opus gives me a number, a fax number and gets me listed with 411 all included in my $99/month rent)
Once you have everything setup (took me less than a week to get to this point).
Apply for the following accounts
I started with ULINE and ordered some storage containers
I went to Quill and got some coffee creamers for my Airbnb listing, and some markers.
I went to Pilot to get a gas card, then later found out they no longer report. They may/likely will start reporting again, so I'll still use this card from time to time.
I went to Grainger and bought some tools.
I went to Barnett (a Home Depot owned company which will let you use your Barnett card at Home Depot!) and bought some PEX pipe I needed.
I went to People Ready and hired a guy to help me with some land clearing I needed done.
I went to Gemplers and bought some tools I needed.
I probably would not have bought any of these things from these companies normally, but by doing it, I now have 6 accounts which all will report to business bureaus, within 30 to 90 days. There are some 'tricks' to ensure they report, but in general, wait for a month to change before paying any invoices to make sure they report your credit to bureaus. (Gemplers for example, will report on the 1st of the month whatever balance you have on the last day the month, so you must have a balance roll from month to month.)
I show above some of the basics required to get the card, and who they will report to.
Once you have 5 "payment experiences" on at least 4 vendors, you can move to companies in orange.
Minimum accounts to proceed is first column on left. Don't jump ahead, you have to wait to hit this accounts and score minimums before moving forward. If you try to skip ahead, you will probably be denied, so just be patient (the hardest thing for me to do).
Your D&B score (called PAYDEX) is calculated almost entirely on your pay history. Pay on time, you get an 80 (out of 100), pay early and it goes up, pay late and it goes down. So, it's VERY IMPORTANT to pay these bills a bit early, to ensure a high score.
I hope this gives everyone a decent guide on how to start this process.
The chart above outlines my plan to get which cards as I'm able, and the requirements to do so.
I use NAV.com to monitor my business credit for free, and also D&B offers free credit monitoring, which I also use.
My plan is to have the ability to get business credit cards in my EIN ONLY within the next 4-6 months.
My goal is to acquire at least $100,000 in available business credit not tied to my social within the first year.
Feel free to hit me up for more info, if you find this interesting.
