Ladies and gentlemen, you have the personal side and you have the business side where you can obtain credit cards for.
What that means to you is this…
I’m going to talk about the benefit of having a personal credit card and a business credit card and really the benefits of why you should have a mixture of both.
First, we need to talk about not putting the cart before the horse.
Now, you’ve guys heard that adage before where you don’t want to put the cart before the horse because then the cart doesn’t go anywhere.
We have a lot of clients. I have never talked about this topic, but we have a lot of clients that come to me and say, “Hey, I want business tradelines.”
Although that is a phenomenal decision for you guys to want to have a business to boost your business, we don’t want to put the cart before the horse and not have a personal guarantor because if you fix your business credit, the business is still going to require a personal guarantor.
For you guys that don’t know what a personal guarantor is, that is basically you are guaranteeing when you apply for a credit card through their business, you’re guaranteeing it by using your Social.
Now, if you put business tradelines, which we’re going to talk about in a second, on your business EIN, and your Social is at a 520, that would be a good indication of putting your cart before the horse.
What we want to make sure is that our Social is in a perfect place to get funding. Then we want to fix the business and start adding some positive history to your business EIN.
Now, the difference between business credit cards and your personal is one reports to EIN and the other reports to SSN, Social Security Number, and then your identification number is your business side of things, so we can’t put personal credit cards on your business EIN.
We can’t put those tradelines.
However, we do have business tradelines.
Now, let me talk about that for a second. I’m going to talk about the bureaus that are much different than the personal side.
On the personal side, we have your Equifax, TransUnion, Experian.
On the business side of things, you have your small business Equifax, you have the small business Experian, you have the SBFE, which is Small Business Financial Exchange, and you have the largest credit bureau, which is known as Dun & Brad, Dun & Bradstreet, so completely two different animals.
What I want you guys to focus on is this…
Let’s take a look at our personal SSN.
If we’re under 700, I really don’t even want to look at business opportunities far as getting funding through your business because most of the lenders, for any decent amount that you’re going to get, are going to require a 700-plus.
I mean, are there some exceptions where you can have a 680, of course, are, but let’s not overshoot it.
Let’s get something that is substantial on your Social first.
The first thing we want to look at is, is our Social in a good place? Of course. That’s our first thing.
Once our Social looks good, then we can start building up the business, and you’re going to start applying for business credit cards.
Now, how do I have 57 credit cards personally?
Because I’ve got probably 35 on the personal, and I’ve got about 20 on the business.
The cool thing about the business is the business credit cards do not report on the personal credit.
I’ve got over 20 credit cards for my business that if I pulled up a credit check total, I’m not even going to see those credit cards. They are reporting and building the business.
Now, let’s talk about a fast start to your business.
Just like the personal side, you can add tradelines. It’s like a shot of steroids to your… you can work out all the time, and then this analogy may or may not work for you guys, but it’s what it is.
It’s almost like the fast start, helping you guys out, getting you that extra boost to your business, so on the personal side we can add tradelines.
Well, we can do the same thing for business. You can add the business tradelines that report to EIN.
Now, the way to packages work here is you don’t sell them separately. They come in packages of five.
Credit limits vary depending on which package you want to go with.
If I’m talking to someone right now who has a 750 credit score, they got a couple of open accounts, and the business is making money, and you’re saying, “Look, I would like to add business tradelines to my business,” we can certainly help you with that.
If I’m talking to somebody who has a 550 score, and you guys are like, “Look, I got a business, and I eventually want to start to get business credit,” then we’ve gotta fix your personal side first. That’s kind of the way it works.
Also, know this: Startup businesses typically don’t do as well as businesses that have been in business for over two years.
The way lenders look on the business is they typically want to look back 24 months.
Personal, not as much, but when you’re applying for a credit card or a loan, and you’re looking for business credit, they’re going to look back to make sure the business has opened up for 24 months or longer in most cases.
That’s pretty much it as far as the business side of things, but I want to make sure that you guys know that a lot of people do call us about this.
They’re like, “I’m ready to build my business.” I’m like, “Look, it’s great that you want to build your business. How long have you been in business?” They’re like, “Well, six months.” I’m like, “Well, we gotta get a little bit of meat behind six months. “
First of all, does the business produce income?
Look at it from a lender standpoint.
We can put a package of five tradelines on your business.
I’ve got a small, medium and large, but what I want to share with you guys is this: Depending on the credit limits that we are adding, that would determine the different packages between small, medium, and large.
If I’m putting 100,000 in business credit, that’s going to be small.
$150,000 in credit, medium.
Quarter million dollars in business credit, large.
Really just depends on how much business credit you’re trying to add, but understand this: Most lenders are looking for a personal guarantor, meaning it’s not going to be on what they call a standalone.
A standalone is my business is… That’s 2014, guys.
Here in 2019, most of the lenders today will want a guarantor for the safety.
That’s why we had a big boom.
That’s why we had a collapse.
You guys know about that in 2008 where we had that. That’s because lenders were given out money to anybody who could breathe.
Today, they’re not going to do that. Today, even if your business is strong and producing income, you’ve got your business tradelines on, they’re going to look for some type of guarantor from the personal side.
That being said, let me know in comments below if you’ve got a business that is in great shape producing income over 24 months old, your personal credit looks really strong, and you’re looking to add business tradelines to your EIN number.
That is something that we can help you with.
If you don’t have a business or you have a brand new business, we want to like to see 24 months of history, so get that time going here.
Get that 24 months on, and then you can reach out, and we can help you out there.
But that’s pretty much it.
But the cool thing, again, is that it does not report to your personal, so a lot of people, “How do you have so many credit cards?”
Because I’ve got business and personal credit cards, so you can really double the number of credit cards that you get that one will report to your EIN and one report to your Social, and when you pull up your credit report for your personal, you’re not even going to see those.
It’s a really cool concept to leverage credit.
Besides this, and I’m going to leave you with this, businesses love businesses, meaning you’re going to get higher limits, better loans, and a lot more leverage through business than you would in personal.
Businesses will lend, banks will lend to businesses at a much greater value than the personal side of things.
Then they can attach it to the business. Businesses are more stable than a person just walking away from the debt.
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