Business Credit
Reading time: 4 – 7 minutes
I know you’ve heard of Dun & Bradstreet and building up your credit by all kinds of BS but I’m not going to talk about scams. Dun & Bradstreet is unnecessary and it’s a scam that dummies pay because some other dummy told them to pay for it. Credit is credit and you having a D&B number is as important as you having a cow brand on your arm WORTHLESS! You WON”T get any more or any less credit having a D&B number. For Business Credit I’m talking about how to get and manage credit cards under your company name. I’ll show you what is needed to build credit the solid, no scams, no games and real way.
- Most likely the bank you set up your business bank account with will want you to sign up for a business credit card. This is the easiest one to get as the bank knows you and your business.
- Look for the best interest rate but don’t get a bank that you never heard of. Interest rates don’t matter a damn if you keep the credit card paid off.
- Don’t get any card that asks you for a annual payment because that’s a scam to take money from you. American Express whole hustle is getting you to pay for a annual fee.
- Don’t pick credit cards because of their rewards as all of them have them and they all offer the same basic coverage. When you do a lot of business this will come in handy but out the box you don’t need any perks.
- Don’t sign up for any services that your credit cards offer as it’s just another way to take money from you.
- Don’t believe they can give you a better deal on flights, cars or even copy paper as that’s a hustle. You call them up yourself and they’ll give you the deal anyway for less. Remember the cards are a business too and they want to take money off the top.
The angle with Credit Cards is to pay them back on time. How does a normal person build credit with you? By making sure he pays you back on time and even earlier will be better. For the Credit Cards they want you to pay them back but they make money by you paying late and then paying extra. The whole way to build credit is SIMPLY pay them off before the money is due. Make sure as soon as you get the bill from them you cut a check right back to them. Once you do this for 6 months you can ask for more credit and the guy on the other end will say WHY NOT! Simple ain’t it!
Building Credit 101
- The more transactions you do and payback on time the more credit they give you. Remember Transaction based business and flipping? They are heavy in this game on this angle.
- When you get your first card only ask for a 1000 credit limit. Tell the person on the other end you only want to get what you can afford to pay back. They will be happy to hear that.
- Every time you get gas for your car pay for it with the company credit card. This is a simple transaction that can be paid back easily by you and shows that you are using the card responsibly.
- Pay for all small business transactions with your credit card like a company phone bill. As you need to have transactions that show up on your card on a routine basis.
- After six months of setting that up and paying it off call back your credit card company and ask for the credit limit to go up to 5K. Say that the company is doing well and you might need it. They will give it to you.
- Don’t add any more transactions to the card just pay for gas and the phone bill with the card.
- In 6 months call back and say you need to go up to 7K
- Keep repeating steps 5 and 6 over and over.
- Ask for 2k increase 6 months later ask for 5k.
Now you have built your credit based off of transactions that are always paid off. You don’t need to get more credit than 10K per credit card you have. Start off with 1 credit card and once you get to 10K open another business card and do the same thing again transfering the gas and phone bill to the new card. In about a 18 months you should have two cards at 10K plus credit limit. You have shown them you pay consistently and you won’t need that much more.
Game Over! And, I didn’t talk about no BS Duns & Bradstreet number or signing up with Staples or some other angle. All the dummies who tell you to do that got a million other dummies doing it the same way so you don’t think the credit card already knows that hustle. Look all these credit card companies are trooped up with investigators keeping an eye on you trying to con them so why not just do it legit. Gas and the phone bills are real needs and expenses of any business so it’s easy to just pay them off with your credit card. You’ll have like 6 transactions or more per month and that’s good for building trustworthiness through repayment and that’s the name of the game.
Extra: Credit is tied into money so make money and you won’t need that much credit. People MISUSE credit by forgetting that’s it’s really money. So if you treat it like money then you will never play or extend yourself to failure.
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Excellent post! One question what if i had a business and the credit in my business is good,can i use the business credit to buy property? I may need to set up a Corporation for that right?
Freeman keep up the good work!
Usually when your buying property under a corporation it’s called a holding company. I’m not too familiar with purchasing property under a corporation.
Credit wise if they give you enough credit you can buy what you want. The problem is credit costs more than trying to get a loan from a bank or taking out a home equity line on your current property.
I would suggest you buy a cheap property and get it rented. Go to the bank and take a line of credit off the rental house and use that money to make your moves. It’s easier to buy a 10K house and rent it out using that equity than to try to build credit to use it. At least you can walk away from the rental house and let them foreclose while if you use your business credit it ruins the company for future credit.
Question: What are the requirements for getting business credit other than the bank where the business acct is? You dont use youre personel info for getting business credit correct?
Also I notice some business credit cards want to check personel credit.
Thanks Freeman for the info.
So you want us to do it the tried and true way? What about all those people who tell you to get a account at Staples? You got me with the D&B number because I thought that was about building credit too. So what’s up Freeman? I need more details!
@Eman – You don’t have to get your credit card from the bank you do business with it’s just easier and less requirements from them since they already have your information. They usually try to give you one as soon as you set up your business account with them.
When you set up a business credit account they want you to be a personal guarantee. So that means they will check your credit but they will still issue you the card. They might start off with 500 bucks but you can build it up with that amount.
Credit card companies do not like to issue credit without someone to take the fall so they will attach to you in one way or another. The more you get your personal credit in order the more everyone and their mother will give you credit.
You can’t go at this the scam way thinking I’ll get business credit to pay for my crappy personal credit. The whole game in business is paying people off and collecting money so why wouldn’t you be disciplined enough to pay people back. All these guys are connected and share information so they know who you are already so you might as well start off by getting all the debt on your personal books paid.
@Califormula – All those Staples and D&B crap is fake. In fact the more people inquiry about your credit the less others take a chance to give you credit. This holds true with you always signing up for Department store credit cards as they mess you up too.
See what cats mess up with is thinking credit means money! Money is money credit is owing other people. So take the simple steps and pay off your gas and the phones and it’ll build. You have to build a track record with something and you getting Staples is not going to do a damn.
Real talk you build credit through transactions on the card. The more you have and pay off the more they will extend more credit to you. If you buy a desk on that card instead of using a check, then immediately cut the check to the credit card company it looks better. It’s just a matter of cats saying I could pay cash for it but let me pay with this card and then when the statement comes in pay it off. They just want to see if you are trustworthy with the money.
In my company I pay everything off every 1st and 15th since I started the company. Now I can send copies of checks to vendors because they know I’m good for it. So the game is the same it’s just credit cards are not your vendors they are your devilish partners in business and if you don’t watch them they’ll charge you for conducting business.
Thanks Freeman I thought that ones personal credit is separate from business credit? Would applying for business credit would it hurt my credit scores or raise my intrest rates on my c cards?
Business credit is separate from personal but in business they usually tie everything to the owner. It won’t effect your personal credit score at all it’s just the business credit might determine how much money they want to give you based on your personal credit. So instead of starting out with 5G’s they’ll start you out with 500 but like I said do your gas and your phone bill on it and they’ll increase it.
It really is separate but they need to base if off something and usually it’s you. So Nope it won’t effect your interest rates at all.
Is okay with you Freeman I found a good site with lots of info credit for personal and business.
Hey whatever helps you to maneuver through life. Keep in mind that a lot of cats are talking scams when it comes to credit. So beware of all angles as this is a major come up right about now for just about everyone.
Thanks Freeman. I just thought the info i posted could be of some more help.
I don’t allow links on the website that’s all. Nothing personal.
Sorry about that no problem.
It’s alright it’s just I get a lot of spam and most of the time they are dropping links to dildo’s or something crazy. So if you want people to follow to a site just write it out without making a link like… riseandgrind.com Then it will be something people can grow on without people coming from my site to some east german viagra factory! LOL
man good info bro
My main man Marc – glad to be of service!