Business Credit Cards vs. Personal Credit Cards: Which One Is
If you’re like most people, you probably don’t know much about credit. And that’s understandable. Credit can be confusing and complicated. But it doesn’t have to be. No fluff here in this guide, these are actionable steps you need to take NOW so we can get you prepared for high-limit funding.
Be sure to download our free Credit Guide PDF to get a better grasp on what it means to have STRONG CREDIT: ( Credit_Guide_Impruvu.pdf )
Let’s get started!
There are a few key things you can do to establish credit:
One is to get a credit card and use it responsibly by making sure you make your payments on time and maintain balances under 20% each month.
If you can pay your balances in full, then we recommend you do that, but if you MUST carry debt, a general rule of thumb is 20% utilization. If you’re seeking funding, you can get by with 30% but lower is better. You need at least 3-5 Primary Credit Card accounts reporting to your profile before proceeding with business funding.
Use your credit card for small purchases that you know you can pay off quickly. This could be things like groceries or gas. Make sure you at least carry a balance the first month so any new cards actually get reported to the credit bureaus. If you get approved for a new credit card, but there is no balance to report, it won’t report to the bureaus. So make sure you make a small purchase and carry the initial balance.
Make sure you make your payments on time every month. This will help you avoid late fees and it will also help improve your credit score. Anytime you get approved for a new card, you should ALWAYS set up automation minimum payments. Set it and forget it.
Soft Pull Credit Card Apps (If you apply and are denied, won’t incur hard inquiry)
Vendor/Merchant/Store Cards (These are also fairly easy to qualify for with a minimum 630 credit score)
DO NOT APPLY FOR A LOT OF THESE, ONE WILL DO
Another is to take out a small loan from a bank or credit union and repay it on time.
1 credit strong account. Build and save. (https://www.creditstrong.com/instal/)
Secured loan. After 3-4 months of positive payment history. Call and close the account. Will report under “Austin Capital Bank” The loan will then report as “Paid in Full”.
Call your personal bank and inquire about a pledge loan. If you can afford to do this, it’s highly recommended. Any amount will suffice but $250 minimum is a general rule of thumb.
Add Credit Builder Accounts ASAP!
You have to get your total accounts to get 10-12 minimum on your credit profile. Start Now! So that you could build your report without having to run your inquiries up (These are Non-Inquiries Accounts)
You can also become an authorized user on someone else’s credit card account (No hard inquiries)
You can get added to someone’s credit cards in good standing with high limits account(s) and you will acquire their credit history (think of it as piggybacking off their credit)
Their payment history and limits will report to you. This will lower your utilization (by increasing available credit), and add credit age and good payment history to your credit. The primary account holder is NOT affected at all by adding you.
For example, You get added to a 7-year-old perfect standing $30k limit line as an authorized user – that will add that perfect payment history, age, and high limit to your report. This is a great way to quickly beef up your credit profile.
KEEP THIS IN MIND! 70% of lenders are still taking tradelines into account when determining approvals. Tradelines are NOT the end-all solution to boost your credit, but they can help you in the funding process. Do not give yourself NO MORE than 3 tradelines.
https://tradelinesupply.com/ (only purchase tradelines prior to funding, as they only report open for 2-3 months)
Once you have signed up and completed all accounts, it will take 30-40 days for it to report on your credit. NOW YOUR PROFILE WILL BE NEAR COMPLETE AND READY FOR HIGH-LIMIT BUSINESS FUNDING!
Be sure to reach back out to your Funding Advisor and update him/her on your progress. If you plan on securing 0% interest business funding, it would be wise to go ahead and set up your LLC and open the recommended accounts while you are building out your credit profile.
Loan approval times can vary depending on the type of loan, the completeness of your application, and other factors. Generally, you can expect a decision within 1-5 business days after we receive all necessary documentation.
Usually, you’ll need proof of identity, proof of income, and financial statements. Depending on the type of loan, other documentation may be required. Please check our loan application page for detailed information.
Yes. We will walk you through how to properly setup a business, and then begin the business funding process.
Yes, but to secure higher limits and 0% interest terms, you will need to have a solid credit profile, 680+ to start.
Any amount you qualify for, Results may vary depending on the client profile. Impruvu does not guarantee an exact amount for the total amount funded. In most cases for startup funding, eligible clients receive between $50,000 and $150,000 in their first round of funding and up to $150,000 to $350,000 after additional rounds of funding. The amount of funding obtained is based on personal and business creditworthiness.
Absolutely. We use the latest encryption technology to ensure that all your personal and financial information is safe and secure.
A loan can have both positive and negative effects on your credit score. If you make regular, on-time payments, it can improve your score. However, late or missed payments, or carrying too much debt, can negatively affect your score.
Impruvu will be able to assist you in building your credit report to the highest levels possible to qualify for funding.
Loan eligibility is determined by a number of factors, including your credit score, income, employment status, and the amount of debt you currently have. We use these details to assess your ability to repay the loan.
Improving your credit score, maintaining steady employment, reducing other debts, and showing sufficient income can increase your chances of loan approval.
Business Credit Cards vs. Personal Credit Cards: Which One Is
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