Tag Archive for: investor credit scores

80% of Real Estate Investors fail at taking this step:

A looming problem that 70%-80% of investors are facing today, is the effect that business expenses are having on their personal credit. How can you make things easier, faster and cheaper? The answer is applying for and using business credit cards! This is a simple step that every investor should be taking to alleviate future strain on personal credit scores. In having better credit scores, it then opens the door to endless possibilities that will create wealth. Let’s look closer at how business credit cards can make your life easier both on the personal side, as well as on the business side.

1. What impacts investors’ personal credit score?

High credit scores are important for investors because it creates the leverage and funding they need to grow their business. Almost every investor runs up their personal credit card balance, by putting too many business charges on them. Thus, jeopardizing their personal credit score due to their credit utilization rate. For personal credit cards, MyFico only allows for a 20% utilization rate before it impacts your credit score. However, business credit cards do not have the same restrictions. Instead, you are able to use the entire credit limit without having to worry. In having better credit scores, it opens the door to endless possibilities that will create wealth.

2. What are the benefits of getting a business credit card?

Business credit cards are the most important thing that investors can do to ensure success. They not only provide funding, but also the leverage required to create further growth. Many investors have heard of corporate credit and have taken the steps to get started down that path. Unfortunately, this option results in years of hard work and multiple steps before any progress can be made. Business credit cards on the other hand, are quick to set up, extremely flexible, and most importantly they will not impact your credit score. Eliminate the cash crunch by separating your personal credit from your business.

3. How do low credit scores impact acceptance?

One challenge that many investors have, is that their personal credit is too low to apply for a business credit card. In this case, they need to pay down their credit card balances by using their savings, or they can take out a personal loan. How can real estate investors repair their credit score and help grow their business? By applying for a usage loan, investors can pay off credit card debt quickly and easily. This in turn allows them to qualify for fix and flip loans, DSCR loans, or other bank loans that can get the business back on track. 

4. What steps do you need to take to set up your business correctly?

The fourth and most important step is setting up your business properly. If it’s not, fix it now! In having your business set up correctly it will make it easier to access more lending options and increase your profits. How can you get on track and set up your business correctly? We are here to help by providing a 1-10 checklist for you to follow. This includes links to the Secretary of State, EIN information, and much more to help get the ball rolling. Our goal is to make it as easy and profitable as possible.

By using personal credit cards for business expenses, you are jeopardizing your credit score and endangering the success of your business. Do not join the 80% of real estate investors who fail. We can help guide you through the entire process from setting up your business correctly, to researching credit cards, and can even provide usage loans to get you back on track.

Watch our most recent video to discover more about the importance of business credit cards and how we can help guide you to success.

3 Ways to Quickly Increase Your Credit Score

3 Ways to Quickly Increase Your Credit Score and Get Better Financing.

I don’t know of any other business that is more dependent on financing than real estate investing.

We create wealth by using leverage (aka, by borrowing most of the funds needed to purchase properties).

In today’s financial world, credit scores matter more than ever. The higher the credit score the better the lending options.

3 Ways to Quickly Increase Your Credit Score

Usage makes up 30% of your credit score. With investors tapping into their personal credit cards to keep their business growing, usage creates funding issues.

Here are 3 ways to lower your usage and increase your credit score in weeks, not months:

  1. Obtain a private non-reporting usage loan to pay off all or part of your credit card balances.
  2. Have friends, family members, or a service add you as an authorized user to one or several open credit card accounts. Make sure these accounts are in good standing, have low to no balances, and are at least a year old.
  3. Call your credit card companies and ask them to increase your available credit limit.

Any of these three options will help increase your score in 30 days or less (as long as you maintain all your other credit and keep your current balances and payment history in good standing).

Learn more with these videos from our Youtube Channel.

Next up: Once your score is up…How to fix your usage problem for the long run with business credit cards.