Business credit cards make investing easier and more profitable

It is important as a real estate investor that you discover ways to make investing easier and more profitable. Real estate investing, as opposed to other businesses, relies heavily on financing. To obtain the best real estate financing, you need to have good personal credit scores. As a result, the higher the scores, the better the rates, and most importantly greater leverage. This in turn equals more deals and a faster track to generational wealth. Let’s take a deeper look on how you can make the switch to business credit cards and why they are important to your future success. 

First, the impact business expenses have on personal credit.

The easiest way to raise your personal credit scores is to stop using personal credit for business expenses. This includes personal credit cards, personal lines of credit, and personal loans. Your credit score is greatly impacted by the utilization rate, which is the amount that you use within your credit limit. The higher the utilization rate, the lower your credit score will be. By keeping your utilization rate below 20%, your credit score will increase dramatically. Therefore, moving business expenses off of your personal credit cards will provide not only a better credit score, but it will also open the doors to more lending options.   

Second, make the switch to business credit cards today!

Make the easy jump to business credit cards today and create the financial flexibility you need to achieve your business goals. The right business cards allow you to run and grow your business by keeping charges off of your personal credit report. As long as you pay the cards as agreed, you will be able to create a separation between personal and business expenses. Another benefit to using business credit cards is that the more you use them, the more likely credit card companies will be to increase your limits. Unlike personal credit cards, there is not a utilization rate penalty. Investors are able to spend up to their maximum credit limit. As a result to separating business from personal, it makes investing easier and more profitable.

Third, what do you need for a business credit card?

Business credit cards are the same type of cards that you use now in your personal life, only now they are in your business name. These cards can be obtained in a few hours with the right credit score and set up. What do you need for a business credit card within this lending environment? 

1. A good to great credit score
2. A business that looks and acts like a real business
3. A steady income or proof of a potential income 
4. Finding and working with the right banks for your investment needs

To be clear, we are not talking about building corporate credit, which can take years to acquire. Instead, business credit cards are the fast and easy way to get your personal credit back on track. Here are just a few of the benefits to making the switch to business credit cards.

1. You can use them like cash for down payments or earnest deposits
2. Can be used to pay contractors, even when they don’t accept credit cards
3. Moving business charges to the business credit cards will increase your credit score
4. They will decrease your personal DTI (debt to income)
5. You can benefit from 0% offers

Bonus Pro Tip!

Fund your growth with 0% interest for up to 18 months with many of these business credit cards. By working with large national and super regional banks for both credit cards and unsecured lines of credit, you will in turn have more lending options available. It is important to look for small local banks in order to build relationships and meet your mortgage needs.

Watch our most recent video to find out more about how business credit cards can help you to invest easier and more profitable.

Don’t want to work on your personal score right now? That’s ok! We can help you look into other lending options including OPM (other people’s money). Options like these can provide the money that you need for any deal on any day at the best rates. Contact us today to find out more!