Guest post  by Mike from Credit Card Forum

I know how challenging it is to own and operate a small business. In fact, most of my working life that is exactly what I’ve been doing!

Whatever type of business you have or industry you’re in, building credit for your company is never an easy task. A lot of people apply for a business credit card to do so, but more often than not doing that won’t help. The reason? Most of them do report to Dunn & Bradsteet, which is the leading bureau for business credit. Even more shocking, most of them are not even reported to your personal credit file either!

However, this doesn’t mean you get off scott-free if you flake on paying your bill. If you have a business credit card and it gets charged off, that will be reported to your personal credit file! But as long as your account is in good standing, it won’t be reported.

So how can you build your business credit using credit cards? Here are three different options:

Option A: Use Store & Gas Credit Cards
Most gas station chains offer credit cards for businesses. At first glance, these cards aren’t very attractive. They have high rates, limited benefits, no rewards, and can only be used to buy gas. The silver lining though is that many of them report to Dunn & Bradstreet. In addition, they will be relatively easy to qualify for if your business has a limited credit history. The same holds true for some store credit cards. For example, office supply stores like Staples, Office Depot, and others offer cards for businesses.

Option B: Find a Bank Card That Reports To D&B
My site advertises credit cards from American Express, Chase, and many other major issuers so I know their cards quite well. My findings? Most business credit cards do not report. In fact the only one that reports to D&B that I know of is the Chase Ink (which I discuss in my Chase Ink card review).

Option C: Obtain a Corporate Credit Card
Many people assume the phrase “business credit cards” applies to any card used by a business. Technically that’s not correct. Under the most industry definition, a business credit card is one that is applied for using your Social Security alone, or in combination with your D&B number. The definition of a corporate card is one that is applied for using a D&B number alone and those typically will report account history. However in order to obtain one of these, your business first must have an established credit history and meet whatever other requirements the bank has (i.e. revenue, years in business, etc). This is why it’s next to impossible for a new business to obtain a corporate card.

Conclusion?
Not all credit cards will benefit your credit building, but some will. If your company has no credit history at all, my advice is to first get a Dunn & Bradstreet number. Then use that to apply for gas/store credit cards and/or a business credit card that will report to D&B like the Chase Ink.

About The Author

Mike runs Credit Card Forum, which is a site for reviews and discussion. His favorite thing to write about are reviews of the best business credit cards, since he knows firsthand the financial struggles business owners face.