Credit card

Zeldman

Zeldman

Touchdown! Greaser!
Joined
Jun 13, 2014
Messages
17,844
Location
high desert NM
Display Name
Display name:
Billy
The bank where I am applying for a business loan recommended that the company should get a American Express® Business Gold Card to improve credit for the business.

What I am looking for is opinions. Now I know no one here likes to share their opinion on anything, but all I am asking for is what does the fine folks here think about the American Express® Business Gold Card. Benefits are no interest on the first year. Then $295/yr.

Can anyone recommend a better business card?
 
I can’t comment on that card specifically, nor give any recommendations, but I will never have anything in my wallet that says American Express on it.

YMMV.
 
One you don't have to pay a fee for would be a better idea. I had one of those Amex cards and it was about the most useless things I ever did. I had a capital one spark card for a while which does give you a decent cash back. Unfortunately, their customer support is so egregioiusly awful, that I cancelled it as soon as the promotion period was over along with EVERY OTHER CapitalOne card I had.

Right now I have two corporate cards (different corporations) issued by the same bank that we have our bank accounts (Currently TRUIST). I also have Lowes (which is AMEX Branded) and Home Depot Pro card accouts.
 
Why does your business need a credit score?
 
I absolutely refuse to do any business with amex, as either merchant or customer.

Won't take the time to explain why, but I absolutely stay away.

That being said, I won't carry any card that has a yearly fee.
Lots of free cards out there, why pay any fee at all?
$295/year? Notachance
 
I had a platinum card for business for 20+ years. The only benefit I recognized was access to the Centurion Club in airports when I traveled, but the clubs weren't convenient to terminals I used so not a big benefit. When AMEX refused to pay damages on a rental car that burned in my driveway (They exclude SUVs. They said I should have read the fine print) I terminated my association. I haven't missed it.
 
Zeldman said:
The bank where I am applying for a business loan recommended that the company should get a American Express® Business Gold Card to improve credit for the business.

What I am looking for is opinions. Now I know no one here likes to share their opinion on anything, but all I am asking for is what does the fine folks here think about the American Express® Business Gold Card. Benefits are no interest on the first year. Then $295/yr.

Can anyone recommend a better business card?
Click to expand...
I dunno. But what business are you making? Will there be a POA Discount?
 
I personally have the Amex Gold and Amex Platinum (obviously with slight distinctions from business versions). If you can make use of the Membership Rewards points sufficient to offset the annual fee, it's a good deal. Otherwise, IMHO the Gold Card's other benefits do not justify the annual fee. I wonder why your bank selected the Amex Business Gold to recommend? Does it have something to do with it being a charge card instead of a credit card? (Although, that distinction is less true since, at least with the personal charge cards, one can now usually elect to carry a balance). Unless there are strong specific reasons for recommending Amex Business Gold to your business, I think I smell commission on your banker's breath and, if it were me, shop around for what makes the most sense for your business.

And FWIW, "improving credit for business" is counter to my experience assuming your business has been up and running for at least a little while. In my experience, commercial lenders may look at what your books say about the timely payment of vendors, and they'll typically looks at things like your audited financials, including your balance sheet, statement of shareholder's equity, EBITDA and certain other financial metrics/ratios. If the state of the business is sufficient to get a lender comfortable, they'll extend credit without looking for a backstop guaranty (in one form or another) from the equityholders. If not, then they do. The credit card thing is weird to me and, on balance, I think I actually do smell commission on your banker's breath. But I'm just some guy on the internet and YMMV.
 
FWIW, many years ago my company dropped AmEx and went with a USBank Visa. If it's good enough for Lockheed, it might work for you, but of course they have some negotiating clout for tailoring terms.
 
I carry Amex Blue for my (defunct) consulting business. No fee. Only pay interest if you can't pay off each month.
 
86Aviator said:
And FWIW, "improving credit for business" is counter to my experience assuming your business has been up and running for at least a little while. In my experience, commercial lenders may look at what your books say about the timely payment of vendors, and they'll typically looks at things like your audited financials, including your balance sheet, statement of shareholder's equity, EBITDA and certain other financial metrics/ratios. If the state of the business is sufficient to get a lender comfortable, they'll extend credit without looking for a backstop guaranty (in one form or another) from the equityholders. If not, then they do. The credit card thing is weird to me and, on balance, I think I actually do smell commission on your banker's breath. But I'm just some guy on the internet and YMMV.
Click to expand...

Brand new start up business, started 31 May and not yet operating. I am actually working with a loan broker right now, so you are probably correct on the commission thing. But it feels good to have lenders working to get my attention. And options.

So far everyone is echoing what my business owner friends are saying about AmEx. But for some reason lenders seem to like customers to have it, which furthers the thought that there is a kickback, er, I mean commission there.



Half Fast said:
FWIW, many years ago my company dropped AmEx and went with a USBank Visa. If it's good enough for Lockheed, it might work for you, but of course they have some negotiating clout for tailoring terms.
Click to expand...

Actually my plan today is to accept the AmEx, and drop it after the first year. Not sure what the plan will be tomorrow... I'll look into the USBank Visa.

luvflyin said:
But what business are you making? Will there be a POA Discount?
Click to expand...

I will be operating a chain of meth labs across the state. If there is enough interest, we'll talk about discounts later....
 
Stewartb said:
I had a platinum card for business for 20+ years. The only benefit I recognized was access to the Centurion Club in airports when I traveled, but the clubs weren't convenient to terminals I used so not a big benefit. When AMEX refused to pay damages on a rental car that burned in my driveway (They exclude SUVs. They said I should have read the fine print) I terminated my association. I haven't missed it.
Click to expand...
There are more clubs and in better locations than there were. It also gets you into the Delta lounges and the Priority Pass ones.
I never figured out what the gold card was supposed to do for my business though. I cancelled it before I owed the fee (I got a waiver the first year).
I used to get my platinum card for free because my advisor was Ameriprise, but I followed him when he jumped ship and became an independent.
 
I'm in the stupid, but I'll ask anyway. What does a "business card" get you that a personal card doesn't?

I'm used to company cards that are secured by the company. They are issued to trusted people that need to make purchases on behalf of the company so they don't need to use their personal cards. But a small company? If I were doing the same, I WANT my 3% back, 25K limit on my personal card.

I used to work for a large, international consulting firm that offered senior employees "company cards." The catch was that the holders had to guarantee them personally. There were few takers.
 
I refused to carry either the Government card I was offered or the Textron one. Both put me as being 100% responsible for paying it and didn't allow me any other use of it. I guess it was a good idea if you didn't have any cards of your own. Years ago I had a corporate card for one of the big Aerospace companies. I got the bill every month and initialed what the items were for and they paid it.

I only got the ones I have now because they offered me something for it. The company is a single member LLC, so it's pretty much a disregarded entity. It gets me a free donut from time to time at Home Depot.
 
MauleSkinner said:
I can’t comment on that card specifically, nor give any recommendations, but I will never have anything in my wallet that says American Express on it.

YMMV.
Click to expand...

Non Compos Mentis said:
I absolutely refuse to do any business with amex, as either merchant or customer.

Won't take the time to explain why, but I absolutely stay away.

That being said, I won't carry any card that has a yearly fee.
Lots of free cards out there, why pay any fee at all?
$295/year? Notachance
Click to expand...


So you DO leave home without it.

Karl Malden would disapprove. ;)
 
Cards with high annual fees have never made sense to me. YMMV

The costco visa gives me the most benefit in terms of cash back. 4% back on gas is adding up fast these days...even on 100LL.:thumbsup:
 
Van Johnston said:
I carry Amex Blue for my (defunct) consulting business. No fee. Only pay interest if you can't pay off each month.
Click to expand...
Same here....Of course I've had mine since the late 70s. Control Data (CDC) (may it rest in peace) was AMEX for those of us who traveled. When I left, I converted it to a personal card, then a few years ago (when Costco dropped Amex and went Visa) I converted it to Amex Blue merely for the "member since 76" embossed on the card. I use it every few months just to keep it active.
 
Charlie Golf said:
Cards with high annual fees have never made sense to me. YMMV

The costco visa gives me the most benefit in terms of cash back. 4% back on gas is adding up fast these days...even on 100LL.:thumbsup:
Click to expand...
My hangar rent alone works out to a free month's rent on the hangar.
 
Last edited:
Control Data, eh? My first real job was a Control Data subsidiary: Arbitron. Years later I bought out another company that (then) Ceridian had bought and abanodoned.

When I worked at BRL, we had the last Cyber 7600 ever built.
 
Sac Arrow said:
What does a "business card" get you that a personal card doesn't?
Click to expand...


Segregation of expenses with an auditable record.

We were required to use the company card for business travel (airline tickets, hotels, rental cars, etc.) among other legitimate business expenses, and prohibited from using it for personal purchases. This made bill payment simpler for the company and created a record that could be used in government audits.
 
If you are a Sole Proprietor or Partnership does not really matter...you are your business but can be a bookkeeping nightmare co-mingling cards.

If you a LLC or Corp you really need to keep business and personal expenses separate and should have company credit cards.

I had a Plat AMX for me and my business partner but we traveled a ton so was worth it and I still have more points than I know what to do with. Have not paid out of pocket for a personal trips travel or hotel expenses in a decade.

Personal or business, I live by the philosophy that if it can go on a CC and get points, it gets charge to a card. Points are $$ that you can use tax free for personal use unless you take a straight cash back option then it is supposed to count as taxable income.
 
Last edited:
You must log in or register to reply here.
Back
Top