Tag Archive for: business credit cards

Which Credit Card Is Right For You: Business vs Personal vs Corporate

Categories:

3 types of credit – and why business vs personal cards are the right option for real estate investors.

Your credit score is the driving force behind your financing. Credit score decides:

  • How many lenders will offer you money
  • Your loan-to-values
  • All terms and rates.

By raising your score, you get better financing. Better financing opens up more options for buying deals – you have more money available to you, plus more flexibility and speed in getting that money to buyers.

The business credit card is the simplest way to make that credit score jump for investors. But let’s compare it to two other major forms of credit.

Business and Corporate Credit

Business credit cards are not like corporate credit.

You can apply for a business credit card and have it back in close to a week. However, corporate credit cards are a bit harder. It involves building corporate credit and going through Dun and Bradstreet – which all takes months or years.

Business credit cards are easy, fast, and can be used every day. All you need is a business, and business name, a bank account, and a decent credit score. (Need to lower your usage to improve your score before you get a business card? Ask us about a usage loan.)

As soon as you get a business card, you can start using it to pay for contractors and supplies, which will free up your personal credit cards and raise your score.

Business Credit Card vs Personal Credit Card

One main difference between a business and personal credit card is that a personal one reports on your score and the (right) business one doesn’t.

For a personal card, you must keep your balance less than 30% of your limit. On a business card, you can max it out. In fact, credit card companies actually like when you use more of your business’s limit, and they’ll give you more credit for doing it.

Using a lot of credit is actually a benefit on the business side.

Read the full article here.

Watch the video here:

by

The Benefits of a Business Credit Card for Real Estate Investing

Categories:

The real estate investor’s credit score solution: the benefits of a business credit card.

Business credit cards are a no-brainer alternative to using your personal cards for your real estate investments.

Most real estate investors use a credit card to pay for the expenses involved in fixing up properties. Doing this, however, raises your balance, which increases your usage. Usage makes up 30% of your credit score, so keeping high balances on your personal card can significantly lower your score.

Weigh the Credit Benefits of a Business Card

It’s important to get all investing expenses off your credit. It not only impacts your business, but it impacts your personal life, too. When you need a personal mortgage, or a new car, or a boat… Your lender will check your credit, and they’ll see the bad score if your usage is out of whack from your business.

A business credit card solves your credit problems in two ways:

  • It helps your credit score. Moving these balances onto a business card takes them off your personal credit. Business credit won’t impact your personal score. This will allow you to get better outside funding.
  • It’s a form of fast, easy, cheap funding. It still allows you the convenience of a credit card – and sometimes at a better rate.

The “best” business credit card for a real estate investor is one that does not show up on your personal report.

Making Real Estate Investing Easier and More Profitable

Our primary focus is making investing easier on the funding side. There are many ways to fill your “money buckets,” whether it’s business credit cards, HELOCs, real people’s money, or loans.

We want to help you with all of it. Reach out at Info@TheCashFlowCompany.com for more step-by-step help on business credit cards and other valuable funding sources.

Read the full article here.

Watch the video here:

by

Business vs Corporate Credit: What Exactly Do You Need for Your Real Estate Investing Business?

Categories:

For your real estate investments, do you need credit? Does it matter between business vs corporate credit?

We highly recommend that real estate investors use a business credit card for their projects’ expenses.

They save your personal credit score, and you can get some types of cards for 0% interest rates for at least the first year. You can’t beat that low of a rate!

To be clear, however, we’re talking about business credit cards, not corporate credit. Why does that distinction matter?

How Corporate Credit Differs from Business Credit

Corporate credit is next-level and will take some time to obtain. But if you are interested, here is the link.

The major difference between corporate and business credit is how they decide you’re qualified.

  • Business credit is based on your personal credit score. It requires you to personally sign on the debt.
  • Corporate credit is based on your Dun & Bradstreet score. It does not require you to personally guarantee the debt.

Corporate debt takes time and typically does not start with (or get to the point of) issuing credit cards… Especially to us small companies.

Why You Should Use a Business Card in Real Estate Investing

If you use credit in investing, a business credit card is what you need. It accomplishes two big items for funding:

  1. It keeps business purchases from impacting your personal score. Then, your credit score doesn’t negatively impact your other funding.
  2. It won’t show up on your report for lenders to officially count it against you when calculating your debt ratio.

Business credit cards keep debt from impacting your personal funding options.

How Hard Is It to Get Business Credit vs Corporate?

Assuming you have everything you need to get a business card, including a high credit score, a business or sole proprietorship, and a good, non-real-estate related business name, getting a credit card is relatively straightforward. 

Go to a site like bankrate.com or Credit Karma to pick the card that’s best for you. You can also visit Nav’s list of business cards to compare different types.

If you keep balances, then you may want to look at cards with 0% intro rates. You can change them out every year and save a lot of money.

How to Get Business Credit

If you need to set up a business or improve your credit score, reach out to us at The Cash Flow Company. We have ways to help raise your credit score fast, and can guide you in setting up a business.

You can also check out Fund & Grow. Ask us about the discounts they gave us to pass on to you!

by