Want To Boost Your Credit Score? Spend On Business Cards Instead Of Consumer Cards.

Update: Have you used this strategy to improve your credit score? Let’s hear about it in the comments!

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Originally posted on 11/08/12:

One of the most common fallacies that people have about their credit score is that paying their bill off in whole once they get their statement is good enough.  It’s not.

The truth of the matter is that once you get that statement it’s too late, the damage has been done on your credit report already.

The “amounts owed” section of your credit report makes up a whopping 30% of your FICO score (only your payment history makes up a bigger percentage than that) and it does not differentiate between whether you pay off your bill in full or in part.  All it is is a snapshot at any given point in time of how much you owe and what percent of your credit is being used on each card individually as well as on all your cards collectively.

The amount owed on your credit report can be from the middle of a billing period or at the end of a billing period depending on the bank.  The fact that you always pay it off in full once you get your statement doesn’t matter at all.  If you make a large charge on a card and your bank reports that charge before you pay it off then your score will be significantly lower than it would be if you didn’t owe anything.  It’s said that ideally you shouldn’t even use 10% of the credit line of any of your cards in order to optimize your score.  Using more than half of your credit line on any given card can drop your score significantly.

So what can you do?  Prepaying a card before making a charge is not a good idea, especially with American Express. You can pay down your balance before your statement closes, though you still typically want it to show some level of activity on the card and you may not want to tie up your funds weeks before you have to.

Or you can get a business card and put your spending there.

Spending done on business cards is not reported to the credit bureaus.  Neither are their credit lines.  So you can theoretically max out a business card and it would not hurt your personal credit score.  Whereas on a consumer card it would have a massive negative effect on your score, even if you will and always do pay it off in full.

Additionally on a business card the credit line is never reported to the bureaus.  Thus when you go to close the card you don’t lose that credit line.  Closing a consumer card on the other hand can hurt you unless you shift that credit line to another card or use that credit line as leverage to get approved for a new card, something that not all banks will allow you to do.

It’s important to note that if you fail to pay a bill owed on a business card that it will get reported on your personal credit report.  But as long as you make timely payments it will never get reported.

Getting a business card is quite simple. You don’t need to be a traditional “business owner” as you might think of one.

For example if Joe Smith sells items on Ebay or on Amazon, or has any other side business/hobby and wants a credit card to better keep track of business expenditures he can just open a business credit card for “Joe Smith Sole Proprietorship” as the business name. You don’t need to file any messy government paperwork to be allowed to do that.
Just be sure to select “Sole Proprietorship” as the business type and just use your social security number in the Tax Identification Number field as well as in the social security number field.

I’ve had business cards since I turned 18 as a Sole Proprietor and never had a problem getting approved with reconsideration if needed. You can reach Chase business reconsideration at 800-453-9719 and American Express reconsideration at 866-314-0237.

So what cards are out there?
Chase has business cards that earn Ultimate Rewards, an awesome transferable point currency that can be used for United, British Airways), Hyatt, and much more. Click here to read more on that.

-There is the Chase Ink Bold Charge Card and the Chase Ink Plus Credit Card.
Both of these cards currently offer 50,000 bonus points after for spending $5,000 in 3 months.  Previously these had required $10,000 in spending.

The Ink Bold and Plus cards have a $95 annual fee which is waived for the first year and those cards allow Ultimate Rewards points to be transferred to airlines or hotels. A lounge club membership with 2 annual visits is included for free for the primary user and for all free additional users! There are also no foreign exchange fees with these cards.

The Bold card is a charge card that must be paid in full every month and has a flexible spending limit while the Plus card is a credit card that has a defined credit limit and can be paid over time.  I’ve gotten approved for both types no one reconsideration call.

With 110,000 points that you can get with the Bold and Plus cards after spending the threshold you can book more than 24 short-haul flights on American, fly round-trip business class to Europe with no fuel surcharges, or even fly in Kosmo Suites first class on a Korean A380. With 100,000 United miles you can fly Newark-Israel-Newark and Newark-Hawaii-Newark with no fuel surcharges.

These cards also offer a whopping 5 points per dollar spent on up to $50,000 annually at office supply stores, and internet/telecom/cable bills.

People like to buy gift cards from office supply stores like Office Max, Office Depot, and Staples for stores like Amazon.com, clothing stores, and much much more with no fees.  You can also save on your gas purchases and earn way more miles by buying gift cards from office supply stores.

You can even purchase prepaid cards from office supply stores that can be used at any store. A $200 Visa prepaid card will cost you $6.95 but you’ll be able to use it anywhere and you’ll earn 1,035 miles for each one that you buy!  Plus there are occasional promotions to defray or negate those fees.  You can even cash them out for free with Amazon Payments, so they’re a good way to meet spend thresholds.

You also earn 2 points per dollar on gas stations and hotels. Don’t forget that many gas stations also sell gift cards and prepaid cards and there’s no cap to the 2 points per dollar earnings.

-Then there is the Chase Ink Cash Credit Card.
The cash card offers 20,000 bonus points for spending $3,000 in 3 months. It also offers 5 points per dollar spent on up to $25,000 annually at office supply stores, and internet/telecom/cable bills.   You also earn 2 points per dollar on gas stations and restaurants. A lounge club membership with 2 annual visits is included for free. There is no annual fee, though you or your spouse need a Bold, Plus, or Sapphire Preferred card to transfer those points into real miles.

-On the American Express side you also have plenty of great cards to choose from that I’ve talked about in the past. The Starwood and Business Gold carda both can earn more than 1 airline mile per dollar spent.  You can read more about them on the Credit Card page here:
-Starwood Preferred Guest® Business Credit Card from American Express OPEN
-The Business Platinum Card® from American Express OPEN
-Gold Delta SkyMiles® Business Credit Card from American Express OPEN
-SimplyCash® Business Card from American Express OPEN
-The Plum Card® from American Express OPEN

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121 Responses to “Want To Boost Your Credit Score? Spend On Business Cards Instead Of Consumer Cards.”

  1. HoKo Says:
    1

    I already knew all of the info in this post except for this “The amount owed on your credit report can be from the middle of a billing period or at the end of a billing period depending on the bank.”

    I thought all the major banks reported your statement balance the day your billing cycle ends. Which banks report the balance from the middle of the billing period?

    ReplyReply
  2. College student Says:
    2

    Dan, I’m currently a full time student in college. I’m making a nice amount of money on the side. I just got my first credit card, the Chase Freedom card with a Chase Checking account to go along with it. so I can build up my credit and it is lucrative for small purchases and low spending….I’m interested in perhaps opening up a Business credit card like you have suggested…Do you think opening a business card is a good idea for me? Any suggestions on how I should maximize and what credit cards I should use?

    ReplyReply
  3. Josh Says:
    3

    Some business credit cards report to personal credit reports no? Such as Capital One, Discover and Wells Fargo?

    ReplyReply
  4. Dumb Says:
    4

    Do business cards make a hard pull on credit report?

    ReplyReply
  5. Jack Says:
    5

    So I just got two Amex business credit cards, I got the Starwood with 5k limit and delta with6k limit. Your saying that wont boost my score because I have an extra 11k additional credit available?

    ReplyReply
  6. Mendy Says:
    6

    “which are churnable by the way”

    How long do i wait between apps to receive the bonus again?

    ReplyReply
  7. mfgny Says:
    7

    Dan – can one do a balance transfer from a personal chase card to a business card?

    ReplyReply
  8. Aus Says:
    8

    Based on what you wrote

    Does it make more sense to only churn business cards? Why would they ever reject someone?

    How often would you suggest churning chase cards?

    Thanks!!

    ReplyReply
  9. Mordy Says:
    9

    Thank you Dan.
    Super informative I have all my personal credit cards MAXED out (I pay in full at the end of each cycle).

    I will sign up for some business cards, how long should it take for my credit to repair itself from the damage done (by maxing out and waiting to the last day to pay)?

    How long should I wait (after paying off all my cards) before applying for some business cards?

    Thank you.
    Great post!

    ReplyReply
  10. yitz Says:
    10

    Thanks Dan for the post. Out of all these cards, which one do you think will give the best, most available to use, points?

    ReplyReply
  11. alonzo Says:
    11

    i know gold has better promotions shouldnt we just wait for it …… i rememember 75000 offer…..

    ReplyReply
  12. oompaloompa Says:
    12

    What lounge access with 2 annual visits is included? I have 2 of these cards and I’m not familiar with this benefit…

    ReplyReply
  13. Stacy Smith Says:
    13

    Why would anyone want to pay the card right after using it just to get a credit score boost?

    I think credit score boost is just a little over rated.

    The best part about using a credit card is the free 30 days you get to pay it back & all the protection & other card benefits you get for using it.

    I don’t think it matters much if you are in 740-800 range. Its all the same.

    Only an idiot would right away pay up the credit card by giving up his valuable cash just so that he can get a good score by timing the reporting to the bureaus

    ReplyReply
  14. Sam Says:
    14

    I always pay a day before closing date & it will not be report on credit reports , as HoKo write before.

    Please explain more this part

    ReplyReply
  15. Aaron Says:
    15

    @ dan.
    I just turned 18 and i have no credit. What card is best for me to build credit ? Can i get a buisness card ?

    ReplyReply
  16. chasecards Says:
    16

    Dan does it make sense after my first year with the Bold card to downgrade to the ink classic to avoid the annual fee? i already have a sapphire so im not worried transferring into miles, thanks

    ReplyReply
  17. kooldude Says:
    17

    What is the minimum to spend on a cc which I hardly use, or is it better to just close it? Thnx!

    ReplyReply
  18. Anonymous Says:
    18

    Does Chase or Amex have any business CC that have 0% APR?? Or any other CC company like wells Fargo, discover or anyone else that has 0% APR on a business cc?? Thanks

    ReplyReply
  19. Dan Says:
    19

    @HoKo:
    The major banks do report on your statement date, so if you are on top of your game you can make sure the payment hits before the statement closes.

    Of course with a business card that becomes unnecessary and you can hold onto your cash for weeks longer.

    However there are banks that don’t follow that, I believe US Bank is one for example and there are others.

    @College student:
    Sure, keeping your credit utilization down will help your score.

    @Josh:
    I’m not aware of that, but AMEX and Chase definitely do not.

    @Dumb:
    Yes.
    Though AMEX allows you to combine personal and business apps on the same day for 1 pull.

    @Jack:
    It won’t boost your score when you open, but it won’t hurt your score when you spend and it won’t hurt your score when you close.

    @Mendy:
    There is no waiting period.

    @mfgny:
    I believe so.

    @Aus:
    I churn cards every 2-3 months.
    No reason not to churn personal and business, the pulls count the same.
    It’s the spending that can be beneficial on a business card.

    @Mordy:
    After just 1-2 months you will be in MUCH better shape with maxed out business cards as opposed to maxed out consumer cards.

    @yitz:
    All of the Chase cards are excellent, super competitive cards. The Starwood and business gold are great as well.

    @alonzo:
    True, that does come around once in a while.
    Currently the offer for the AMEX Gold is 50,000 bonus points for $5K spend. The 75K offer requires 10K spend.

    @oompaloompa:
    https://www.loungeclub.com/inkcard

    Use code: CHASEINK

    Primary and free secondary users can eah get 2 free lounge visits per year!

    @Stacy Smith:
    Some “idiots” churn dozens of cards per year earning million of miles and stay in 5 star hotels and fly in first class for free.
    Does that make me an idiot for paying my consumer card bills before they’re due?

    Besides that’s the point of this article, on a business card you can wait until the due date to pay you bill with no negative effect.

    @Aaron:
    Start with having a parent add you onto an old account with a high limit that they don’t max out.
    Or go into a Gap or Macys and get a store card and use just a couple dollars on it per month, pay it off on time, and within a few months you should be able to join the big leagues.

    @chasecards:
    If you are not maxing out the office supply store benefit, sure.

    @kooldude:
    Generally it’s good to use a card once a year, but that’s just so that they don’t close it for no activity.

    Don’t close it unilaterally, use it as leverage to get approved for new cards when calling reconsideration.

    @Anonymous:
    Yes. All of the Ink cards besides the Bold card have 0% APR on purchase and BTs for 6 months.

    ReplyReply
  20. Mordy Says:
    20

    @Dan,

    How long should I wait before applying for business cards?

    Thanks.

    ReplyReply
  21. chasecards Says:
    21

    Dan i just got my first Bold Business card from Chase and some other cards but i do not have an American Express business card which one would be best for me to apply as first timer with American Express? (few years back they denied me on a personal). Also should i wait a bit before i apply since just got chase approvals a month ago? Thanks so much.

    ReplyReply
  22. Sushimaven Says:
    22

    Is there any way to apply for a business card without having to provide a SS #? I unfortunately ran into credit card issues a few years ago and had to settle several of my accounts at a discount. Now whenever I apply for a card — even a business card — I come up as an undesirable. Especially with Amex. Any suggestions? Any idea how long the CC cos. will keep me in the penalty box?

    ReplyReply
  23. meshugener Says:
    23

    ” Prepaying a
    card before making a charge is never
    a good idea, especially with
    American Express. ”

    @dan
    Why is it a bad idea?

    ReplyReply
  24. Dan Says:
    24

    @Mordy:
    You can apply now if you want, you can always negotiate with reconsideration to get it approved.
    Or pay down you bills now and apply a couple weeks after the statements close.

    @chasecards:
    There are lots of good AMEX cards but he Starwood cards are personal favorites, the gold cards offer nice signup and spending benefits, and the plat cards have nice bennies as well.

    @Sushimaven:
    Consider finding a reliable form to try to clean up your report. Otherwise it takes many years for the bad stuff to fall off.
    You can also post on DDF to get advice from people who have been down that road and fixed things up.

    @meshugener:
    It is an F/R trigger. They consider it a way of you circumventing your given credit line.

    ReplyReply
  25. myreports Says:
    25

    how often should one look on credit report? are they free after approovals? if getting approved by one bank should i stop for 3 months before going to another?

    ReplyReply
  26. chasecards Says:
    26

    Seemes like all good American Express Business cards have Annual Fees just cant have another card with high fee any way around it? thannks

    ReplyReply
  27. Sushimaven Says:
    27

    Does anyone know a business card that offers an intro 0% APR on balance transfers and a $0 balance transfer fee? Transferring any significant balance at a 3% fee adds up to real money.

    ReplyReply
  28. Dan Says:
    28

    @myreports:
    You can look as often as you want. It doesn’t reallt make a difference.
    It is free once a year or after a denial.
    There’s no need to wait in my experience.

    @chasecards:
    With small business Saturday you can easily turn a card with a $65 fee like Starwood into a money maker. Plus the card is free the first year.

    @Sushimaven:
    I don’t know of any like that.
    For consumer cards there is Slate, but of course that balace will show up on your report: http://www.dansdeals.com/go/slate/

    If you’re worried about your score though then a 3% fee for 0% APR for 6 months on the Ink credit cards isn’t bad at all because the balance owed will be hidden from your credit report.
    It basically comes out to be a 6% loan, but one that won’t hurt your score at all.

    ReplyReply
  29. Tea Says:
    29

    hi dan,
    i have a business tax ID # for a corp, which i don’t use often.
    When I apply for a business card, do i gain anything by using my NY tax ID #? Or should i just do it under sole proprietor / social security #…?
    Thanks!
    Also, I got a 50k offer from Amex Gold in the mail (targeting to me but didn’t respond) and then 2 months later got a 75k offer for Amex Gold…do you think i’ll be getting a 100k offer from them if I wait?
    thanks again, dan!

    ReplyReply
  30. Dan Says:
    30

    @Tea:
    You may as well use the Tax ID if you have one, though you don’t need to.

    And anything’s possible, who knows?

    ReplyReply
  31. booyaa Says:
    31

    “Prepaying a card before making a charge is never a good idea, especially with American Express”

    Why is that?

    ReplyReply
  32. credit score Says:
    32

    with a good credit history, i only had an issue of too much credit utilization over the past year because i took advantage of big balance transfers at 0%, i paid all the balance transfers off and my score is on its way back up, today its at 711. is it a good time to apply for business cards or is it better to wait till it gets higher?

    ReplyReply
  33. credit score Says:
    33

    i was even been told by a few banks about a half a year ago that the issue approving me at first (until i used the idea you gave of transferring credit from an existing card) was too much credit utilization.

    ReplyReply
  34. Samuel Says:
    34

    Hi Dan. My dad has a business and got in the mail a targeted platinum 100000 offer first year free. My dad does not mind if I use the offer to get it for myself but is there anyway that I can change the first name to my first name on the card? He does not want to open the credit card under his name. The business name I guess I can keep but should I enter my social or tax ID? Also will they let me change the first name? Thanks!

    ReplyReply
  35. Smart brit Says:
    35

    Thanks Dan for the information.
    When I have a business card for my cooperation and I want another business card that is sole ownership would I get another amex bonus?
    And does a business card that is for a sole ownership account as well not count against my credit score?
    Thanks

    ReplyReply
  36. yitz Says:
    36

    Dan, i got rejected from opening an amex business card even though i already have a personal card. Anything i can do? Thanks

    ReplyReply
  37. Mendy Says:
    37

    @Dan:
    “No waiting period”
    Does it involve phone calls, or does it just work?

    ReplyReply
  38. Rots5 Says:
    38

    hey dan, im a bt confused, i have been specifically waiting for my billing period to end and then pay it off that day, this is what i was told on DDF, bec i used to pay off all my bills basically the same day i made the purchase (norder for the bills not to back up) but then i was told that my credit score dent reflect any usage bec i have a zero balance at the end of the month, even though i spent tons of money on it but i paid it off right away, what r ur thoughts, bec i am not sure what to do

    ReplyReply
  39. Dan Says:
    39

    @booyaa:
    See 24.

    @credit score:
    You should be able to push it through with a score above 700.

    @Samuel:
    Don’t have experience with that, sorry.

    @Smart brit:
    AMEX bonuses are more finicky than with Chase, so YMMV.
    But spending on it won’t be on your report.

    @yitz:
    Call reconsideration and exaplain why you want the card. I do it all the time.
    Just did it today in fact and now I have 13 Chase cards including all 4 Ink cards :D

    @Mendy:
    YMMV.

    @Rots5:
    Ideally? Pay it down before the bill closes, but leave over a few dollars to pay off after the bill closes.

    ReplyReply
  40. Mendy Says:
    40

    @Dan:
    “YMMV”
    So would waiting longer in between churns help? Also, if they say no to the bonus, what arguments do you make to get it again?

    ReplyReply
  41. Rots5 Says:
    41

    thank you so much dan! that is ideal then! :-) shabbat shalom!

    ReplyReply
  42. SoWhat Says:
    42

    So a credit line on a corporate card doesn’t count. So if I have an AMEX Biz Gold charge card, its irrelevant to my score and I can cancel it once the annual fee kicks in? How does a charge card work re a credit line/score?

    ReplyReply
  43. chasecards Says:
    43

    How do you make small business Saturday like Starwood into a money maker. can you plz explain ?

    ReplyReply
  44. mosh Says:
    44

    i just got approved for a personal cc with chase could i apply now for a buss. card?

    ReplyReply
  45. Dan Says:
    45

    @chasecards:
    By adding additional users.

    @mosh:
    I don’t see why not?

    ReplyReply
  46. mosh Says:
    46

    tanx dan
    could i shift credit from personal to a buss.?

    ReplyReply
  47. Dan Says:
    47

    @mosh:
    Yes.

    ReplyReply
  48. mosh Says:
    48

    tanx dan
    tanx to you for the 3 new cards. I got 1 personal freedom (lucky me I did it on the 10 at night an got a sm that I will be automatically enrolled in the 10 for 10) and 2 buss the buld and plus

    ReplyReply
  49. Joeruby Says:
    49

    @dan. I applied for the Chase ink plus, However a Chase representative told me that if I put my social with the business cards that It does get reported every bill cycle to the credit bureau my balance is that true??

    ReplyReply
  50. Rusty1 Says:
    50

    My wife & I have (each) applied for a Chase Southwest Credit Card that has a points earning value of 50,000 after a spend of $2,000 in the first three months – both cards were approved. We won’t have any problem with the spend, but wonder if it is wise to apply for another Chase card before the three months is over, even it the spend is completed in the first month? Will Chase likely disapprove based on the recent Southwest card applications?

    ReplyReply
  51. vic Says:
    51

    HI DAN, BOTTOM LINE WHATS THE BEST CARD TO OPEN ? WITH MY BEST RETURN ? I DO ENJOY FLYING TO ISRAEL. THANX. I’M OPENING A NEW BUSSINESS NOW …. NEED CREDIT CARD.

    ReplyReply
  52. TG Says:
    52

    @Dan
    can i transfer business earned ultimate rewards points to my personal account and then use my sapphire preferred to send it to my united miles account?

    ReplyReply
  53. JJV Says:
    53

    @ Dan, Hey Dan I have been very interested to start churning business cards, but I’m concerned about during filing taxes time. Would I have to file a separate tax form for this?

    ReplyReply
  54. Dan Says:
    54

    @Joeruby:
    Not true.

    @TG:
    Yes, but you can also send it directly from Bold/Plus.

    @JJV:
    Of course not.
    This won’t affect your taxes at all.

    ReplyReply
  55. Jim Says:
    55

    i applied by saying i got ebay, amazon biz but after one year all of them are gone

    ReplyReply
  56. doochi Says:
    56

    About spending that hurts your score, here’s my experience.
    After applying for credit cards you’re entitled to your report.
    I’ve called up experian after receiving the report, and asked the dates a specific bank reported my info.
    Its always once a month per bank.
    Now its usually within the same 2 days each month.
    They can tell you the exact date every month that bank reported.
    Now you just gotta make sure that day -plus minus one day-
    got a low balance.
    Ask the credit bereau for the dates the specific bank in question reported to them- if they already reported that month, they won’t report again during same month.
    If your really neurotic, you can find cards with 2 week intervals of reporting, and flip balances using amazon payments etc. in essence keeping thousands of $ on your cards and showing 0 on your report.
    And like the post said, the due date is worth squat.

    ReplyReply
  57. bubble347 Says:
    57

    hey Dan is changing from the ink bold to the ink plus considered an upgrade or downgrade? in other words can I do it without another hard pull?

    ReplyReply
  58. Dan Says:
    58

    @doochi:
    Or just use business cards when you can :D

    @bubble347:
    Why do you want to switch?
    Unless it’s a new application you won’t get the signup bonus or the 6 month 0% APR on the Ink Plus.

    ReplyReply
  59. bubble347 Says:
    59

    I just got approved for the bold but I prefer a credit card over a charge card that needs to be payed in full (I didn’t relize the difference when I applied). My question is if they would switch it for me just like that or they would recheck my credit (which I hope would not happen since I had to beg recon for this one to begin with)

    ReplyReply
  60. NAT Says:
    60

    How many times a year can i apply for a chase credit card and still receive the bonus for meeting the threshold? i was told by a chase rep that its only a one and done deal and if you apply for the same card you are not eligible for the bonus anymore after receiving it the first time

    ReplyReply
  61. Business 101 Says:
    61

    Very helpful post. The ink plus combined with vanilla refill and office supply stores is fantastic. Applied in December and it is going great! Keep up the great job Dan

    ReplyReply
  62. Tuck Says:
    62

    Got an Ink Plus card and moved my rolling balances onto it. Reduced my card utilization from 23% to 8%. Credit score (CreditKarma) is highest its been in my whole life. Thanks DD

    ReplyReply
  63. Dan Says:
    63

    @bubble347:
    I would spend the $5K before switching it to make sure you get the signup bonus.
    Then apply for the Plus and the worst case is they cancel your Bold card to approve the Plus card and you can get another 50K.

    @NAT:
    Depends on the card. For Ultimate Rewards cards there’s no limit.

    @Business 101:
    Thanks!

    @Tuck:
    Well done!
    Credit Karma isn’t FICO but it’s still a good simulation. If it’s much higher since switching to using business cards than so will your FICO score.

    ReplyReply
  64. bubble347 Says:
    64

    Thanks sounds like a good idea.

    ReplyReply
  65. NAT Says:
    65

    so in essence i can sign up for a new sapphire or ink card a few times a year a be eligible for the bonus?
    Thanks

    ReplyReply
  66. Jay Says:
    66

    Guys take advice from chief Dan. I had an 810
    Fico score but after letting 4 Amex consumer cards close
    With high balances I saw my score drop to 745. Besides
    For the FR I dealt with after and the ensuing spending limits.
    Dan is there any timeline on when my score can go up
    If I paid up all those balances. Thank you

    ReplyReply
  67. Sam Says:
    67

    @NAT:
    That and airline cards as long as you make a new mileage number and apply with that.

    ReplyReply
  68. chaim Says:
    68

    what other cards besides ink can earn united miles?
    how many miles do i need for Israel?

    ReplyReply
  69. Sam Says:
    69

    United Explorer (secure message match to 55K miles and $50 cashback)
    Sapphire Preferred 40K
    Freedom 10K
    United Explorer Business (secure message match to 50K miles and $50 cashback)
    Links here: http://forums.dansdeals.com/index.php?topic=8028.0

    Israel is 40K one-way in coach and 60K in business.

    ReplyReply
  70. YYK Says:
    70

    Dan, does it make a difference if the business card is a credit or a charge card? If yes, which one is better to put the spending on?

    ReplyReply
  71. Ben Says:
    71

    @ Dan i applied for the Southwest Card
    and then applied for the Southwest Business Card
    Chase Ink Chase Plus
    Chase gave me an option to choose so i took the Ink Bold cause it has a no pre set spending limit

    QUESTION: Can i transfer the 50,000 Bonus Points From The Ink Bold Card to SouthWest?? i should be able to get the Companion Pass Status??

    NOW With American Express
    I Had Applied For 2 Platinum Amex Cards
    To Get The 100,000 Bonus Points
    and I Also Applied For The Business Gold Card To Get The 75,000 Bonus Points

    I Paid $900 For The 2 Amex Platinum Cards
    I wanna Downgrade The Platinum Cards To Regular Gold Cards Now If I Do That Will I Loose The Bonus Points??
    Or I Must Take Out The Points Before I Downgrade The Cards??
    Does Amex Refund The $450 Fee??
    Thanks!

    ReplyReply
  72. YYK Says:
    72

    Does closing a charge card have a negative affect on your FICO score? Since a charge card doesn’t have a credit line I was thinking that it can’t raise your credit utilization ratio by closing it. Is that correct?

    ReplyReply
  73. Esti Says:
    73

    Hello Dan, does churn mean close the account after a few months?
    if you close – any negative effect on future approvals?
    if leave open, will be hit with AF.

    What is your opinion?

    ReplyReply
  74. IH Says:
    74

    I had 10 inquiries in the last 12 months with 7 new cards opened (2 were mortgage & 1 a car loan) & 2 cards closed to avoid the annual fee.

    Score went up 10 points! I don’t pay to much attention to amount of pulls when applying or business vs. consumer.

    Just open up a card every month or 2 depending on how great the offer is – pay off cards & the score will take care of itself.

    I had CSP MC & VISA versions & got the bonus for both.

    Are you saying that if I go for it again I will get the bonus again??

    ReplyReply
  75. IH Says:
    75

    @yyk – I downgraded to green & the points remained- THEY PRORATE BACK THE ANNUAL FEE DIFFERENCE BETWEEN THE 2 CARDS.

    remember though – YMMV

    ReplyReply
  76. az Says:
    76

    @ben
    transferring those 50,000 to southwest wony count towards your companikn pass

    ReplyReply
  77. sol Says:
    77

    @dan you said rather than closing a cc you can use it as leverage to open a new credit card. How do i do that?

    ReplyReply
  78. Dan Says:
    78

    @YYK:
    No difference.

    @Esti:
    Closing a business card shouldn’t affect you at all.

    @IH:
    Indeed.

    @sol:
    If I have a SW card I want to close I can apply for a BA card and have it approved by closing the SW card and moving over its credit line.

    ReplyReply
  79. Ben Says:
    79

    @ Dan Why Dont You Answer Me On #71??

    ReplyReply
  80. Dan Says:
    80

    @Ben:
    They don’t count for companion pass unless you funnel them via Hyatt at a loss:
    http://www.dansdeals.com/archives/28880

    You can downgrade to Gold without losing points.

    ReplyReply
  81. Ben Says:
    81

    @ Dan But Will They Refund Me The $450 Fee What I Paid?? Thanks

    ReplyReply
  82. Ben Says:
    82

    @ Please Answer Me On That I Paid $900.00
    For To Amex Platinum Cards Now When I Downgrade Will They Give Me A Full Refund??
    Thanks.

    ReplyReply
  83. dan's fan Says:
    83

    Dan,

    Your link above for Chase Ink Cash Credit Card is for $200 cash rewards, not 20,000 points. Can you provide link for same type of points card?

    ReplyReply
  84. Dan Says:
    84

    @Ben:
    You will get a pro-rated refund.
    Just call them.

    @dan’s fan:
    The $200 comes in the form of 20,000 points.
    You can transfer those points to a card like Sapphire, Bold, or Plus and then transfer them into miles.

    I have 4 Ink cards myself so I know this for a fact.

    ReplyReply
  85. Ben Says:
    85

    @ Dan What Means a Pro-rated Refund??

    ReplyReply
  86. Daniel Says:
    86

    Hi Dan,
    I am new to this site, and would like to thank you for all the deals you bring to our attention.

    I have 2 questions: In order to build a nest of many points, I imagine that you have to apply (or churn) for cc’s quite frequently. How many times a year can or should a person have his credit pulled? And does the # of previous pulls show up in front of the analyst reviewing your report or does it just slightly affect your score?

    Thank you for answeing our questions.

    ReplyReply
  87. Brian Says:
    87

    My score is up significantly since I started paying off my bills early and switched a lot of spending to chase ink plus.

    ReplyReply
  88. Jj Says:
    88

    I just opened a Amex platinum business 2 weeks ago and they just froze my acc until proof of income any help odont make income on books

    ReplyReply
  89. james Says:
    89

    after reading this post a few months ago i opened a BOA buisness credit card and i got approved and then they sent me a letter in the mail that they want to see some records from the state that i have a real business so i wrote them back that i don’t have any because my buisness is to small its only on amazon so they said i should contact my states buisness dept meanwhile i haven’t done it and they didn’t close my card yet as they said they would if i don’t provide the documents they required thanks dan this realy helped me i shifted all my spending on to this card

    ReplyReply
  90. chana Says:
    90

    Ben:
    Pro-rated: They charge you for the time that the card was a platinum. $450/12 is $37.50 for each month.
    Don’t forget to get your $200 airline incidental reimbursement per card before you downgrade them. For info: http://forums.dansdeals.com/index.php?topic=3802.0

    In general: Note there is a way to get the Amex platinum without an annual fee for the first year, but you get no sign up bonus points. through ameriprise
    http://forums.dansdeals.com/index.php?topic=9772.msg431751#msg431751

    ReplyReply
  91. Dan Says:
    91

    @Daniel:
    You’re not going to find a number like that. It’s a matter of trial and error.

    @Brian:
    Well done!

    @Jj:
    If you don’t make income you should close the card down before they do.

    @james:
    Sorry, don’t have experience with BOFA. Never heard of Chase doing that when you have the card already.

    ReplyReply
  92. Yoni Rappaport Says:
    92

    I am a mortgage broker and I deal with credit issues all the time. Although it is true that if you have a large payment when it’s being reported your score will go down, however when you need to use your credit score it can be easily rectified. You don’t need a good credit score all the time, only when you are looking for credit (mortgage, credit cards etc) when the creditor is pulling the report. I have plenty of people who come to me with a lower score because of high credit balance, and once it’s been paid off we notify the bureaus and the score jumps back up.
    For people that pay off their credit cards in full every month then it doesn’t really matter, because they can always notify the bureaus when needed. However those people that aren’t capable of paying off it full then the business card is a great idea for them.
    A low score is doesn’t mean the person has bad credit, what gives someone bad credit is bad history (lates, collection accounts, tax liens etc.) and for that you need to contact someone who fixes credit reports.

    ReplyReply
  93. Dan Says:
    93

    @Yoni Rappaport:
    Thanks for chiming in!

    For someone who’s into churning it’s good to keep your utilization low so that they don’t have to deal with waiting for their reports to be updated.
    Paying cards off early or using business cards helps a lot with that.

    ReplyReply
  94. DavieBoi Says:
    94

    Regarding the Platinum Amex…

    I received the card (in the mail) on 1/7, immediately utilized my $200 airline credit to buy AA gift cards, paid the $450 annual fee, met the minimum spend requirement(amaon payment) w/in a couple days to receive the 100k points, transferred the points to US Airways (through points.com), called and closed the account on 1/25 and was issued a full ($450) refund of the annual fee. It was a nice 2.5 weeks.

    But, I’m pretty sure you can get a full refund if card is cancelled w/in 60 days of it being issued to you. This has been the case with every other annual fee card I’ve cancelled.

    ReplyReply
  95. Sushi Says:
    95

    Hey Dan,

    “Prepaying a card before making a charge is not a good idea, especially with American Express.

    Why??

    Thanks!

    ReplyReply
  96. Dan Says:
    96

    @DavieBoi:
    Correct, 60 days for a full, afterward it will be pro-rated.

    @Sushi:
    It can (though won’t always) trigger a financial review.

    ReplyReply
  97. Mottelleim Says:
    97

    Dan:
    1) I recently got the amex gold business reward charge card for our new chabad house. Now, would having a CHARGE card affect at all (for the bad) my eligibility for another CDEDIT card?

    2) if the answer about e is “no” then: now we also need a CREDIT card, is there any way to apply to 2 different credit cards at the same time with out neither of.them realizing you are applying to the other one. Ie: getting approved by both? Ty!

    ReplyReply
  98. sol Says:
    98

    i have a bank of bank of america card with a 2500 credit limit and i want to transfer it to a chase freedom card. what number do i call? how do i do it?

    ReplyReply
  99. sol Says:
    99

    @dan i have a bank of bank of america card with a 2500 credit limit and i want to transfer it to a chase freedom card. what number do i call? how do i do it? (every time i call they want to do a hard credit pull on my credit)

    ReplyReply
  100. josh Says:
    100

    when i apply for credit cards how long back do they look on my credit utilization? can i have big debts on my credit card & 1 or 2 months before applying for new card ill bring down the debt? or do they look over longer course of time what my utilization was? thanks!

    ReplyReply
  101. nechama Says:
    101

    hi Dan,
    do u have any suggestion for repairing credit?

    ReplyReply
  102. David Says:
    102

    @Sol:of course Chase wants to pull your credit report. You cant transfer a credit limit from one bank to another.

    @Nechama:pay off your debts and dont get into more and your credit will slowly repair itself

    ReplyReply
  103. Ari Says:
    103

    HI Dan, Chase does not allow you to make a payment until the there is a “Current balance”… How do I pay before it becomes a balance statement?

    ReplyReply
  104. Ari Says:
    104

    Also in addition to 103. Chase does not allow you to make a Payment within 3 days, how do i make sure I will make the payment quick enough, that the statement will not yet be posted.

    ReplyReply
  105. aaron Says:
    105

    just got accepted last week for an ink plus wanted to know whether i would get accepted for the sapphire and united explorer if i applied now {my credit was in the 760 range before that pull}? thanx alot

    ReplyReply
  106. moishy Says:
    106

    @dan: I got my premier gold a mth ago. I spent the required 1K in a week. [Paid it up also] After the first billing cycle my points still didn’t post. When I called amex they told me there is a one mth lag before the points post. Is there a way to get the points ASAP?
    @DavieBoi
    Regarding the Platinum Amex…
    How did you get the points posted to your acct so fast?

    ReplyReply
  107. yanki Says:
    107

    Hi Dan. 2 weeks ago I did a 5 bm with chase. I got approved for the freedom and the ba cards. But was declined for the following. United visa signature business , chase world elite business. Chase sapphire visa signature. I have 1 old united personal card that I can give up. Which card should I call recon about to get approved?

    ReplyReply
  108. yanki Says:
    108

    @Ari: you can always walk into a branch and make. Payment with a teller

    ReplyReply
  109. a Says:
    109

    when i called amex to use starwood as leverage to get new delta gold card, via transefering whole credit line, they said they can’t transer the whole line. card was open for 11 months at the time. ??

    ReplyReply
  110. A Says:
    110

    @Aaron: Capital one secured card

    ReplyReply
  111. Barak Says:
    111

    Hay Dan
    I want to apply for business credit card ., I have
    An LLC with a partner ..
    I saw that u write that I can applay for business
    Credit card without an tax ID # .,
    My qustion is what’s better to do for
    Approve/ or get higher credit limit ?
    Apply with my LLC .,? Or with my s.s ?
    Thanks

    ReplyReply
  112. Josh Says:
    112

    @Yoni Rappaport: What you are neglecting to remember is that current creditors peak into your credit reports via AR’s periodically and can close cards, lower limits etc. if they don’t see what they like.

    ReplyReply
  113. ari Says:
    113

    will the current balance on the card at the time of the application show up (I assume not) and even if not will it affect the decision of the same bank (ie if you are applying for a chase card while carrying a large balance on a chase business card?)

    ReplyReply
  114. sruly Says:
    114

    Dan Thanks for this great post, and its so useful for me after i max out my Personal and business cards with %200-%300,. ouch

    Would like to ask, how does it work with the ink Bold? is it considered as a business (that it is) that i can max it out with %200 with no problem or not?

    And how can i qualify to push up my credit line on the bold?

    ReplyReply
  115. sruly Says:
    115

    @Ari yes, i had with chase, they didnt want to approve me cuz i have a big balance with Citi

    ReplyReply
  116. sruly Says:
    116

    @Yoni Rappaport:
    Thanks so much for the post, can you just tell me how i can notify them after paying in full my big balance to place my credit back up?

    ReplyReply
  117. Sima Says:
    117

    You wrote “With 100,000 United miles you can fly Newark-Israel-Newark and Newark-Hawaii-Newark with no fuel surcharges.”
    Can you explain please how to do it if not in one shot e.i. with stopover in New York for few month?

    ReplyReply
  118. Abe Says:
    118

    Hey Dan I have a quick question. Is there anything legally wrong with applying for a business card with no real business? Meaning can you get into trouble (sued, arrested) for doing such a thing? I don’t mind trying it if the worst they can do is deny me the card. Just wondering because they make you check off a box to confirm that this is a business. Thanks

    ReplyReply
  119. Avi Says:
    119

    Is there a difference in quality of cards to help improve a credit score? Does having a certain card build credit faster? My wife just got rejected from an SPG AmEx much to our dismay. I’d like to try to build up her credit. She has 1 or 2 cards in her name – what would be the best way to do that? (Other than keeping her utilization to the single digits.)
    -Increase credit line on existing cards?
    -Apply for any pre-screened cards that come in the mail – even if they are (gulp) Capital One?
    -Co-sign on a new card for her with my excellent credit?

    Any cards (on Dan’s top 10 list) you guys think would be easier to get with a FAKO score in the mid 600’s?

    ReplyReply
  120. ssandra128 Says:
    120

    Hello. My question(please answer before 6/1)is when I apply for a business cc, what do I put for revenue made being that I’m a startup company? I also see that it said “legal name of bus” and “type of business.” Type is easy b/c the dropdown has “sole prop.” But for “legal name” there is no dropdown. Do I put the same as well? Please answer as soon as possible.

    Thank You very Much

    ReplyReply
  121. Eliot Says:
    121

    Hi Dan,

    Applied for the Chase Ink Plus card, “Pending for 10 days”

    Called reconsideration, said it was declined & asked for EVERYTHING from my ebay to amazon account usernames to see if they match up to the numbers I put on the application.

    Is that normal? Just hung up.

    ReplyReply

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