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Building Business Credit with EIN Only

Oct 31, 2024

Building Business Credit Using EIN Only

Overview

  • Focus on building business credit scores using EIN only, without personal credit score considerations.
  • Discussed top three business credit cards for businesses using EIN.
  • Bonus information on additional business credit cards.

Steps to Building Business Credit

1. Establish Business Structure

  • Legal formation with Secretary of State is necessary.
  • Options include LLC, S-Corp, etc.
  • Suggested resource: Tutorial video on setting up LLC, EIN, and DUNS number.

2. Obtain an EIN

  • EIN (Employer Identification Number) is required.
  • Can be obtained for free from the IRS online, same day.

3. Acquire a DUNS Number

  • DUNS number from Dun & Bradstreet required for business credit building.
  • Can take 7-10 days to receive.
  • Acts as a business's social security number for credit building.

Building Business Credit

Similar to Personal Credit

  • Add trade lines/accounts in the business's name.
  • Two main scores: Experian and PAYDEX score with Dun & Bradstreet.

Requirements

  • At least three business trade lines required to generate a PAYDEX score.
  • Trade lines must report for 60-90 days before a score is generated.

Recommended Business Credit Builders

  1. Nav Prime

    • Provides two business trade lines.
    • $49.99/month.
    • No minimum credit score, offers secured business credit card.
    • Provides monitoring and financing options.

  2. eCredable

    • $19.95/month.
    • Links personal utility payments to generate business credit trade lines.
    • Ability to link multiple utilities for additional trade lines.

  3. Crown Office Supply

    • Net 30 account to help build credit.
    • Offers another trade line option.

Top Business Credit Cards Using EIN

1. Sam's Club

  • Requires opening a business account at least 31 days before application.
  • Offers a credit line up to $20,000; EIN only.
  • Membership options: $50 or $110.

2. Costco

  • Requires a $120 business membership.
  • Offers 2% cashback, a Visa card usable anywhere.
  • Allows adding authorized users.

3. Amazon Business Credit Card

  • Credit line up to $30,000.
  • Application through EIN only.
  • Usable on Amazon and elsewhere.

Bonus Business Credit Cards

Lowe’s and Home Depot

  • EIN only applications.
  • Good for businesses needing construction materials.

Additional Resources

  • Offers business consultations for building credit or getting funding.
  • Business funding options available with Rock Financial for businesses earning $10,000/month.
  • Approval up to $300,000, no minimal credit score.

Conclusion

  • Encouragement to subscribe, seek consultations, and further resources provided.
  • Open invitation for questions and interactions in the comments.

Full transcript