Tag Archive for: better credit score

#1 Mistake Made by Small Businesses and Real Estate Investors

What is the #1 mistake made by small business and real estate investors? The answer is not applying for and using business credit cards for business expenses. They are the most important thing and the simplest thing that all investors can do for both their business, as well as their personal lives. While personal credit cards are easy to use, it makes life more complicated as you get into investing.  It doesn’t matter if you are doing flips or rentals, you need to make the switch today!

We Want To Help You!

Our goal is to make it as simple as possible for business owners to succeed. Real estate investing is reliant on leverage or funding for growth and generational wealth. We just want to make the process easier for you. 

Stop Using Personal Credit Cards. 

70% to 80% of people we see are using personal credit cards for business expenses. By putting business charges on your personal credit, it drives down your credit score and makes everything harder. Personal credit cards are used to complete repairs, as well as to grow your business. However, using them on a regular basis will drive down your credit score quickly. This problem even affects investors who are applying for loans. They are either being denied, or required to put more money down because of their credit score.

Where Do You Start?

One of the easiest things to do is to stop using personal credit cards and instead get into simple business credit cards. The best part about business credit cards is that they don’t impact your credit scores. We are talking about the same credit cards you use now, the only difference is that they are in your business name. In making this simple switch, it then allows you to take your business expenses and transfer them onto your business credit card. This not only removes those charges from your credit report, but it also gives you peace of mind that your business expenses will no longer affect your DTI. In the end, the better the credit score, the better the funding you can get to create wealth.

Increase Your Credit Score Quickly.

Here at the Cash Flow Company, we provide a usage loan or 911 loan that will help get your credit score back on track. We use a private non-reporting loan to pay off or down your credit card balances.  With little or no balances showing up on your credit report the next time your credit card cycles, your score increases.  With usage counting for 30% of your score, this will have a huge impact on your new score. We receive calls daily from people who say that they need to increase their score 18 to 20 points. These investors are charged an additional 10% to 20% down, or even being denied loans because of their score. To be clear, this loan is for those who have high balances but don’t have late payments. Is a usage loan right for you? Give us a call today to find out more. 

Open A Business Credit Card Today!

Everyone has credit cards and uses them on a regular basis, so why not make the switch over to business credit cards? Unfortunately, investors ht a detour and go down the path of applying for corporate credit. This is a tiered system that can take months or even years to build. Business credit cards on the other hand can be applied for right away. If you have really good credit and you’re starting a business, then you can get a business credit card right now. Chase, American Express, for example, will give you somewhere to start, as long as you are set up and running like a real business. The more you use the business credit cards, the greater your available credit, and the more benefits you will receive. This includes Southwest, United, Marriott, and so much more. 

Make The Change Today And Succeed Tomorrow!

Both credit scores and leverage are important to create wealth. We want to make sure you do it right! If you have a real business and operate as a real business, then you need to apply for business credit cards today! Investors are hesitant when they are approved for a few thousand to get started. However, when lenders see that you’re using it and paying it down in chunks, they will quickly raise your limits.It may take 2 to 6 months to move everything over, it just depends on where you’re at. Making the change now will make your life so much easier as you grow your business.

Watch our most recent video to find out more about #1 Mistake Made by Small Businesses and Real Estate Investors

Do you have more questions about setting your business correctly? Do you need additional information about raising your credit scores? Contact us today!

How Your Credit Score is Robbing You

Credit Score 101: How Your Credit Score is Robbing You

In this session of Credit Score 101, we’d like to introduce you to Sally Payday and Joe Robber.

Sally Payday is a wonderful guest. When she shows up on your front doorstep, she brings a smile, hug, and a bag of cash with her.

Joe Robber, on the other hand, doesn’t knock. He strolls right inside and steals money out of your wallet. Then takes it and runs!

So, who can you expect a visit from? Sally? Or Joe?

Well, it all depends on what credit score Mr. FICO gives you.

Mr. FICO can be a tough cookie, especially if you:

  • Forget to pay your bills
  • Overuse your credit cards
  • Or don’t use enough credit…meaning, you don’t have enough or any

Believe it or not, having debt can be a good thing. Because when you don’t have any, Mr. FICO doesn’t know you exist. Therefore, he can’t give you a credit score—or he can only give you a low one.

And if you have a low score, then, unfortunately, you can expect a visit from Joe Robber. Because a low score means you pay higher interest rates on your house, car, and other loans.

And if you’re paying higher rates, then Joe gets to take more of your money.

Which makes him a very happy man.

He loves stealing all the cash you could be using to save up for a dream vacation, a healthier lifestyle, or a more comfortable retirement.

Meanwhile, Sally Payday takes a different approach.

She doesn’t like to take money. She likes to make sure it stays in your bank account. But she can only visit people who have good credit scores. Because a good credit score means you pay cheaper rates.

And cheaper rates mean lower bills. Which means you can pay for your trip, gym membership, retirement, or anything else that would make your life better.

Sally Payday and Joe Robber are not one-time visitors. They show up on your doorstep every month.

And every month, Sally brings cash, and Joe steals it.

Which one would you rather welcome into your life?

Because it’s really your choice.

Everyone can have a good credit score. Even if you don’t have one now, it’s within your reach. You don’t need to keep letting Joe in the house. And Sally’s just standing there on the sidewalk, ready to present you with a bag of cash.

Want to find out how you can raise your score? Check out some of our other videos on our Youtube channel.

You can also join our live series How to Invest in Real Estate. Every Thursday at 11 AM MST, real estate expert, Mike Bonn answers all of your questions and shares expert tips on improving your credit score, investing in real estate, and building a comfortable retirement.

Happy investing!