If you are able to meet the requirements below you are ready to PG Business Credit Cards:
680+ Personal Score
(2) Accounts Minimum
$5,000 total credit limit Minimum
Less than 3 inquiries in 12 months
2 Year minimum Credit Age
50% Utilization or less per account
No Derogatory Marks
Late payments are ok if older than 6 months.
We are ready to apply for Business Credit Cards!
If you want to increase your funding capability, having one personal account of $10k+ will do it (Navy Fed offers high limit personal cards)
Also establishing a Bank Rating will influence the amount approved for.
Funding E Book
**KEEP IN MIND**
This mini guide has an example of a funding sequence. You do not have to apply for these exact cards. Its recommended you apply for (3) National lenders (Chase, AMEX, Bank of America, Wells Fargo etc.) and 3 Local Lenders in your City / State In that order.
Set Up Credit Monitoring
Make list of lenders and where they pull (See Below)
Freeze the other 2 bureaus when applying for one bureau.
Apply for (2) Cards per Bureau!
** KEEP IN MIND **
FREEZING THE BUREAUS WHILE APPLYING IS NOT REQUIRED. WE TYPICALLY ONLY FREEZE A BUREAU WITH A NEGATIVE ITEM LIKE A CHARGE OFF, COLLECTION, LATE OR REPO TO MAKE SURE THE LENDER DOESN’T SEE IT.
Business Credit Cards are my FAVORITE form of financing for MULTIPLE reasons.
1. Only Financing you can get at 0% interest.
2. You can acquire unlimited financing through business credit cards and get high limits on a brand new business with no revenue, or tax returns.
Some of the local credit unions do “in house underwriting” meaning they do their own applications and don’t use the same underwriting companies that 90% of banks use, Elan. This essentially means you can get approved again and again and again and acquire hundreds of unsecured business credit cards with 0% interest from all banks across the nation. You’ll learn more about this in the video in the next lesson.
Get a Credit Monitoring Service so you know which bureau the inquiry lands on in real time. You can get IDIQ for $1 trial here for 7 days and cancel after if you like.
The idea here is to sequence (6) credit card applications to get (2) Approvals per bureau, Equifax, Experian and Transunion. When you apply for a card you will know which bureau they pull from because you’ll get a credit monitoring alert or you have the data points from the list or from speaking with the bank themselves.
Most cards only pull from (1) Bureau but keep in mind some creditors(Chase in some states) pull the bureau based off your STATE you live in.
You can find out which cards pull from which bureaus at the website below.
Choose 2 or 3 Business Credit Cards from different banks per Bureau.
Its in your BEST INTEREST to do 0% interest Credit Cards. I recommend local community banks that don’t use Elan, Chase and Amex for Experian Pulls, Citi and local banks for Equifax, Barclays, Navy Fed and Local Banks for Transunion
WHAT TO PUT ON APPLICATION:
Its very important to note on the applications when they ask revenue, if you are a new business its a projection. Its recommended to put somewhere around $250k. Its not lieing, its just a projection. Also recommended to put more than 2-3 years in business, again, You can say you were officially a business on “X Date” but you’ve been operating as a sole proprietor prior to formation.
Lastly, Ensure all information (Legal Business Name, Address, Phone #) Is CONGRUENT Across, EIN Letter, Articles of Formation, and your Application. If it isn’t the computer can raise a red flag for review and you won’t be auto-approved and will be subject to underwriting when doing online applications with major banks(Chase, Amex)
IF YOU GET DENIED OR APPROVED FOR LOW LIMIT
If you get approved for under $15,000 you need to call and ask for an increase. Tell them your business monthly expenses are more than the limit approved for and you can pay it down in full each month.
If you get denied ALWAYS call reconsideration line, you can negotiate and get approved. Chase has been known to not approve right away, call in and most of the time they just need your EIN Letter and Articles of formation.
If you get denied for any other reason, call the bureaus and wipe the inquiries, fix the issue and re apply to a different lender or the same lender.
=Also: IF POSSIBLE ALWAYS Get pre-approved first. Chase, AMEX and Bank Of America has SOFT CREDIT PULL Pre-Approvals.