Chicken/Egg: New Startup, Need Credit Card


We're a new startup and need a credit card to make some online purchases. We're looking into options and all of them seem to want at least two years of business history, positive cash flow, etc. Worst case scenario, we can use our personal credit cards, but was hoping to establish some business credit early on by paying things off monthly. Any suggestions?

Finance Credit Cards Business

asked Apr 29 '11 at 11:20
212 points
Top digital marketing agency for SEO, content marketing, and PR: Demand Roll
  • why not use personal credit cards? – Tim J 13 years ago
  • It sounds like you want to enter a risky endeavor without taking any risk. That is not how the world works. If you are so concerned about the risk that you don't want to take it on, why should the credit card issuer? – Kenneth Vogt 13 years ago
  • @Kenneth Vogt - not sure I understand how you arrived at the judgement that I don't want to take any risk? My original question states that I would be paying things off monthly. How can a startup without positive cash flow pay things off monthly? Only two possibilities: investors or self-financing. For now, I'm self-financing. Putting my own money up is about as risky as it can get. I want to earn some credit for doing so... – Aj. 13 years ago
  • you have to differentiate your intention from a guarantee. Lots of folks intend to pay off their credit cards monthly but that's not always how it turns out. It's not a judgment, it's what happens in the real world. Credit card issuing banks are not the trusting sort. – Kenneth Vogt 13 years ago

3 Answers


Anybody who will give credit to a company with so little history will require one or more individuals with good personal credit to co-sign as guarantors in case the business flakes out.

There are lots of companies that lease capital equipment that way. Credit cards? I dunno. Look around; Chase keeps advertising their "Ink" cards on TV. You may find it less hassle just to use your personal cards.

answered Apr 29 '11 at 12:23
Bob Murphy
2,614 points
  • Ink cards (which is what we're using) are personally guaranteed cards. – Sean 13 years ago
  • that's exactly what I'm pursuing...there are some companies that will "play ball" if your personal credit is good. Good feedback, thanks. – Aj. 13 years ago


If you have a DBA certificate to open a small business checking account, you can sometimes get a credit card through that bank. It will have a very, very low limit like $200-$500, but it's a start. I did this when I opened a real estate business, but I did have good personal credit as well.

answered May 1 '11 at 14:31
Ho Wi Web
31 points


if you have cash flow and you don't need to use any overdraft why don't you just get a credit card without and overdraft / debit card?

answered Apr 30 '11 at 23:47
561 points

Your Answer

  • Bold
  • Italic
  • • Bullets
  • 1. Numbers
  • Quote
Not the answer you're looking for? Ask your own question or browse other questions in these topics:

Finance Credit Cards Business