Business Credit Cards - Five Hacks for Approval

Introduction

• Understand the difference between charge cards and revolving credit cards.
• Leverage personal and business credit for wealth building and investment.
• Importance of being financially literate and responsible.

Key Differences

Charge Card vs. Revolving Credit Card

• Revolving Credit Card: Pay minimum balance, e.g., Capital One with $5,000 limit, $1,000 charge requires a $75 payment.
• Charge Card: Full amount due monthly, e.g., American Express, full $1,000 is due if charged.
• Importance of understanding terms to avoid credit trouble.

Five Hacks for Business Credit Card Approval

Hack #1: Use Your Business Bank

• Apply for a business credit card with your business bank.
• Relationship leverage: Banks may offer credit cards upon account opening.
• Action: Schedule an appointment with a small business banker to discuss qualifications.

Hack #2: Leverage Existing Relationships

• Use existing personal credit card banks for business credit.
• Pull personal credit reports to see existing relations, e.g., Personal American Express to Business American Express.

Hack #3: Credit Unions and Regional Banks

• Utilize credit unions and smaller banks for business credit.
• Regional banks often have funds available for business owners.
• Reconsideration: If denied, call for reconsideration of your application.

Hack #4: Secured Business Credit Cards

• Start with secured cards if necessary (e.g., Wells Fargo).
• Helps establish trade lines and can transition to unsecured cards.

Hack #5: Fleet Cards and Vendor Accounts

• Use fleet cards like WEX and Murphy USA for revolving credit.
• Provides trade lines even for new businesses, aiding in future qualifications.

Additional Tips

• Be incorporated and have an EIN, business bank account.
• Separate phone numbers and addresses for business credibility.
• Secure a business website and professional email.

Importance of Personal Credit

• Aim for a personal credit score of 680+ to aid in business credit approval.
• Understand that being a Personal Guarantor (PG) is common and temporary.

Final Nugget

• "God's grace is sufficient."
• Reflect on the year, give yourself grace, and continue striving for improvement.
• Take small steps toward financial literacy and wealth building.

These notes are intended to guide you in understanding the process and strategies for obtaining business credit cards, using relationships, and incorporating yourself as a business to leverage credit opportunities.