Atl-Marcos

The best thing I ever did was get a large line with NFCU. I agree, I'd max my secured credit card to $50k and see what happens. My only concern would be would they be less likely to unsecure such a large line? I would get the secured line, and try to fix as much stuff as you can on your report and then see where you end up. Your next approvals should be much higher.

My last CLI was 4/11/17 and I'm still over 700 and no love at all. Just not enough experience, blah, blah, blah. I guess I should feel thankful I moved from 800 to 2,200 before they stopped giving any love.

I mean it's not a very complex problem, you're at best a couple of months away from defaulting on the whole lot of them unless you do something drastic now. The simple fact of the matter is that if your income doesn't exceed your expenses you will continue to go further into debt. But you've reached that limit. It has a lot less to do with your debt and more to do with your income. There's not much you can do to limit your debt, but you can increase your income. You're going to have to get a job that will allow you to catch up, anything less is going to end up with you defaulting on some or all of the debt. Obviously it's easier to say get a job, than it is to get said job.

I'm not very emotional about cars. They are just Point A to Point B facilitators. At the end of my long process, I was ready to go. And of course they had deceptively advertised the cash rebate. They had a price of $23,900 with a rebate of $3000 under the price. And they didn't disclose that the $3k was already calculated into the $23,900 price. So I walked out. And the finance director was so full of malarky- I just laughed at him. And then listening to them push around other people was amusing. Most people don't come in armed with our information.

We just got liability and workman's comp insurance for a business we acquired last month, and they never even asked the EIN of the company but my SSN. To be clear that was an acquisition where my primary company purchased an add-on company. However at least it was a soft pull not a hard pull. Perhaps that will change as we get larger.

I'm in the market right now for a new car, and I absolutely hate the entire process. I don't trust anything they say. It's sad that it has to be this way. And I sure as hell am not letting them pull my credit. They tried some Geronimo where they wanted to pull my credit until the check came from the credit union. I was like I think not. You can keep the car I'll pick it up when the check arrives.

That's probably the best explanation I've heard yet. Thank you. I really wasn't trying to be argumentative, I just didn't see why it made sense to do this. However, and here is my caveat: "you will start seeing loans and lines of credit based solely on your company credit and financials." I'm just not sure the evidence is there that this is the case. If your companies financials are strong, then you're getting the lines of credit because it makes sense for the bank/lender. I see the small accounts we chase as being an insignificant piece of the picture. If it were 50% of their decision, then yes it completely makes sense. But when you're getting those million dollar lines of credit, I just don't see having a Quill Net 30 account as mattering at all. I see business credit as completely opposite of personal credit. In personal credit, your credit score rules everything. A 480 score with a $200k income won't get you anything(ask me how I know this). However in business credit the opposite is true. A $200k net profit company with a million in revenues, with no significant business credit will get you most everything you could possibly get. Does that makes sense? However with that said, a major piece of profitability of a company is cashflow management. If I get my money faster, and pay it out slower it makes my company much more efficient. So in that sense I can appreciate the benefit of having as much of your expenses in delayed payments. No I'm not. I have said over and over again that you can get business credit cards that don't report on your personal report. In fact in the part you quoted I directly said that: "Whether you ever did any of this business credit building or not, you still have access to most business credit cards. They pull your personal credit once, you're PG'ing it, and yes it's a "hidden line". But Chase for instance could care less whether you have 50 accounts reporting on your business credit report. They will make the decision whether to give you a business credit card based on your personal score."

BUT.... and this is the big point here. Whether you ever did any of this business credit building or not, you still have access to most business credit cards. They pull your personal credit once, you're PG'ing it, and yes it's a "hidden line". But Chase for instance could care less whether you have 50 accounts reporting on your business credit report. They will make the decision whether to give you a business credit card based on your personal score. So that's my point. It seems like a lot of work, when you don't really need to do it anyway. If you have a 800+ credit score, then having a net 55 at NewEgg is going to have a much smaller impact than having decent income plus a good personal score. While I agree with what PoorB says, in the end I'm not sure I see that business credit building as discussed here brings much of value to the table. I've read BRBiz's post pretty much completely as well as others. And in the end, I don't see them getting a bunch of non-PG lines that are dependent SOLELY on the business credit. Here's a simple analogy. Let's say we have two mythical friends, Bob and Steve. Bob and Steve are entrepreneurs. Both start-up a company and do really well for themselves. Both are bringing in $500k gross, and $100k in profit, and they have the tax returns to prove it. Over those two years they approach their credit needs very differently. Bob focuses on his personal credit, he has an 800 credit score, with over $100k in lines, and isn't using any of the lines. Steve follows this forum's advice, and spends two years building up his business credit profile. He has 20 or so different business accounts on his various business credit reports. However, he's not so conscientious about his personal credit. His personal credit score is a 650, and he owes around 70% of his $30k in credit lines. Now Bob and Steve need to borrow $50k to fund some business expansion. Who is going to find credit easier? I'm going with Bob. Now if Steve also has the 800 credit score and the business credit built-up. I don't really believe that Steve has any significant advantage over Bob. It seems to me having a good personal score, plus good income is much more important than having a thick business credit file. What my original question was asking, was when does it pay off, and what does it look like? In the end if I mess up my personal credit and I'm sitting at a 480 fico, what does it matter if I have a 10 year thick business credit file, I'm not going to get extended much credit.

And see, there is the rub. I've not seen a valid case for why it's better to build the business credit over building the business itself. If the business has the sales then you can get the business credit you need. But it doesn't really work the other way except in small amounts. You can't build business credit enough to where if you have a $50k Gross company you're getting all the credit you need. You can probably fairly easily get $100k-200k of PG business credit based on your personal income and personal credit along with any business credit building. And further, I think you could get that $100k-200k of business credit without doing any of the business credit as discussed here. Minus perhaps a program or two you miss out on. But, you're not really moving into the non-PG world until you have a decent sized business. As far as the business line that my friend got. He got it at a small local credit union. But he also has average weekly deposits of around $400k. So the $1M wasn't a huge chunk of that.

I guess my point is, how is this any different than using your own personal credit. I'm trying to get a handle on what the end game is, what's the goal. My personal credit is good enough and I show enough W-2 income to get most everything I want/need, but obviously still growing that. Generally speaking other than a car lease and some non-PG credit cards, I don't see the point in building the business credit. If I need a loan for $500k let's say, it's still going to depend on my personal credit. It's not like I can do all these business credit building things, have a 580 personal credit score and get a loan for $500k regardless if I PG or not. I guess my point is, if I have a business that makes good money and I need a $5M loan then I really just don't think the business credit is going to matter at all. It's going to be on the financials of the business, and the personal credit of the applicant. One of my friends recently got a $1M credit line for his business, and he had done none of this. No DUNS number. No Experian credit score, nothing at all. Just a good business with good financials. This is seriously a serious question. I'm trying to figure out what the final goal is. I don't really care about a Quill account. I want credit lines for my business that will grow with it. Generally speaking the hard ones with a bank, where you need audited financials and everything are not making a decision based on your business credit profile but rather on the financials of the business, the credit profile of the owner/applicant and the banks tolerance for risk.

I get all the small net 30 accounts to get you started, then gas cards, then Amazon, then biz credit cards without a PG (more or less). What I'm not sure on is what is the end goal. So two years down the road I have a fairly thick file. I have some non-PG credit cards. I've been perfect on payments, etc. So then what? Maybe an auto lease with the biz? In the end the things that seem like real end game products are still going to require a PG. I'm not going to get a $5M SBA loan for an acquisition without a PG, no matter if I had a twenty year perfect file. I'm just trying to get a feel for the end game, what can someone who has a real business with real profits expect in a couple of years time. Sorry if this has been discussed elsewhere.

So each lender acts a little differently as far as CLI's. Personally I think the Slate card is pretty useless unless you're going to do a balance transfer. Chase is very difficult to talk into CLI's. The way to grow Chase is to combine cards. But of course you have the 5/24 rule which makes that fairly difficult. Discover seems to have drastically tightened down their CLI's. It's not really clear what the pattern is for CLI's as of yet. It used to be you could get a CLI every 30 days. Now some are on 90-120 days with no CLI's, with no idea what's next. https://creditboards.com/forums/index.php?showtopic=542057 Amex luckily is pretty simple. After your 2nd statement cuts. You can try to get a 3x CLI or $15k. There are tons of threads about it. Good luck and congrats.

I would check out Sofi. I just got a $50k unsecured loan from them after one of my friends got a $75k loan. My EXP was 715, although my income is fairly high($170k W-2). And I got 8.95% interest rate, no closing costs to originate. Took about a week. PM me if you want, as I have a code for a free $100(I get $300). My Util was right around 25% as I am acquiring an existing business right now.