Advice needed...domino effect | I'm left with NO CCs

[SAIDFICOMUSTBEASCAMLOL]

Short Version actually it ended up being longer( domino effect)

Top of the Year:  2 accounts slashed ...so I've been "over the limit"

Recently: AMEX closed me because of new GE accounts ( $4100, Ray/Flan $3000 Lowes, $3000 Ebay, $1800 Amazon, $1500 Walmart,  $1000 Old Navy, 2 small accounts) They closed accounts I had since 2010 totalling about 12k in credit- on average 35/40% was being used.) My AOA ( I think that was it ) was only about 3 years and 7 months. My Amex was backdated to 2007 ( damn them!) 

I went from having over 100k in lines of credit to about 21k!!! This is with $210 as my current income ( no deductions yet) -$150k reported  on my 1040 ( 2012) and now double that because I took on another job in hospitality with A-listers. Before you say YEAH RIGHT. What's slowing my funds down is my "living situation", "helpers" and repaying the debts from my Corp that isn't generating much income right now. Oh and all of my student loans. My overall debt exceeds $300k and NO I do not have a mortgage reporting. I'm a City Slicker and a single mom with nothing more than my wits as support. I had a 5 year plan to pay off EVERY LAST DIME that I owe. It was 100% doable until my ccs got shut down! It takes money to make money.

 I need advice, what can I do? Do I call up GE and request them to remove the inquiries on the new 3 accounts they opened last week?

If I paid off all of my GE accounts ( which I can do, totals about 10k) am I still screwed because of those slashed accounts?

OR

Should I continue to carry balances on closed GE accounts and pay off the slash to fix my overall ratio? The problem here is I only have 10k to "spare." I would need 12k to 13k to bring the balances down to the new credit limit. 

I dunno... what I do know is I need  the cards to manage my cash flow until the lump sums of money came in.

 I may get 50k in one month and not see any more for $ for two months. I tried Kabbage ( declined...I think that app triggered AMEX) and another company. The second company would submit my paper work to the underwriter because I bill more than 30k per month via CC, but I use Stripe ( regular) and Balanced, and merchant statements are not available

Immaturity: I feel like I should of defaulted on all of my accounts. I'm paying out 5k/ 6k+ 5k on my personal amex, for what? Just for them to shut me down and put me in the poor house? I know I can't rely on anyone else in the world, but I felt like for once in my life I was being a normal person and following the "rules" of society. I thought I was going to be okay. Now I know why there are so many suicidal CEOS in the world. Thank  GOD, ALLAH, the Messiah, whoever I'm stronger than that.

BTW, I don't feel I was a risk. They could of gotten my bank statements that show 25k+ deposited every month into my PERSON b.a....plus a 4506T...plus paystubs from my job ( C-Corp rem?) Sometimes, I feel like I'm being punished for doing as well as I have. Even with my deposits and 750> scores, and owning a corp that generated more than 1MIl/yr,  I could not get a loan for $75k from my bank. Sometimes I think its my zipcode,  ghetto name my mom gave me (T/G its not NORTH WEST), and/or skintone.

Back Story ( Long Version)

My last post was about my AMEX card and requesting the removal of the hard limit. I swear sometimes I think "they're" tracking me because weird stuff happens to my accounts after I post on here and CB. Anyways, the next day AMEX cancelled my card via email. This comes after I made a $$$ payment.  I called up to ask about a refund (I had a Plat card- anni is in Jan.) Before I could do so an outsourced rep gave me a list of bogus reasons ( fav was violated terms.) When I asked about the fictitious reasons she asked if I would like to have my account reinstated for $25. I said sure. I was told 7 to 10 days. I thought everything was ok. Well the next day  I called up to see if my card number was going to change. Another outsourced rep said " you will be notified in 7 to 10 days on whether or not your request was approved." I said... "say what?!" No one said anything about being approved or declined. 

So, now I'm playing the waiting game. If they don't I will be demanding $225 back as a credit to my balance.  BTW nothing was "due" because I spent 3x my limit for the last 3 months.

Here is where is gets better. After Amex closed my account GE closed ALLLLLL of my accounts with them. Bad enough I have two credit slashed accounts $22k/10k and $5k/3k ruining my report, now I don't have a single credit card on my account! My FAKO ( TU) dropped about 20 points. I know my FICO was a 731 ( Walmart) with a matching FAKO of 650.

I'm at a lost because I need my credit to SURVIVE. Prior to all of this I tried to get a Secured CC with both BOA and Cap1. They declined me repeatedly ( for the last 2 years even when my FICO was 770 and I had 20k lines.) I'm trying to figure out how I am going deal with suppliers and vendors since I need a CC for most of the services.

These transactions aren't small because of  the status my clients.  I need as much working capital as possible and going to the bank is not an option, neither is mixing transactions with my other company (Biz 1 is a SP and Biz 2 is a Corp.)

I really needed my credit. 

[RandomCreditDude]

 A few questions come to mind:

You have a company that generates a million a year in revenue. However, how much profit do you make? Of course, you don't have to tell us details; it's enough to give a vague idea of how the company is doing.

$210 as current income vs $150k in 2012? Did you mean $210k, or do you really mean your income now is $200 (a week? month?). That kind of drop is hard to understand, so I'm betting there's a typo in there somewhere.

It's hard to understand from your post, but it seems like you have a cash flow sitation, rather than a credit situation. This is a fairly common thing for entreprenuers; managing cash flow can be complex, especially if you have large sums of money flowing in and out. Perhaps you should see a professional financial manager about this? 

For the bank loan, it sounds like you might be getting denied because your business plan may not be what they're expecting. Reading your post, it sounds like the simplest explanation; it's hard to understand precisely what your problem is.

Note that I'm not knocking you down; I've been involved with VC firms and angel investors, and getting money out of them is an art. It's all about presenting solid financial projections, and being able to clearly articulate your firm's value prop. Frankly, it's all about the presentation! Lots of people get funded with very shallow business plans, just because they had a kick ass presentation.

Coming back to your immediate problems: How come you don't have a business CC? You sound like you have consumer cards. Why not Amex Plum, Chase Ink, those kinds of cards? Those are designed for small businesses.

[dddewdrop]

  I would recommend not carrying balances on your cards at all for a while. It sounds like you can either afford to pay them down at your income level or you can restructure your business situation so you have business cards to carry some of your business debt. I think creditors got spooked by the dollar value of your total debt outstanding regardless of your debt as percent of available credit.  If possible pay down that debt and get it off your credit reports and you can move on from there with a clean slate.

[GatorGuy]

You certainly have one heck of a cash flow problem. Before you start paying down accounts try calling some of the backdoor numbers to the EO's and explain your situation. See if you can get your limits raised and express you willing to provide whatever support they would like.

You really need to open some business accounts and do it with a CU or someone who cares about your business. A few LARGE TL's are what you need rather than 20 small ones. I just opened an account with Navy Federal. They asked for minor documentation but were VERY generous on both my personal CC and a business CC. You will also have an easier time explaining your situation.

Work on getting your fixed payments down. See if you change your repayment options on your student loans. If they are over $30k, typically you can take them out to 25 years, not that you want to take that long to repay but just lower the payment so if you need to pay the minimum one month you can, and then make it up the next.

This is all assuming what you stated was correct and you aren't leaving anything else out like derog's on your reports, BK's, etc. Typically I haven't heard of accounts being closed unless you opened like 5 new accounts in one week. Especially if you have been paying on time.

[SAIDFICOMUSTBEASCAMLOL]

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@RandomCreditDude wrote:

 A few questions come to mind:

You have a company that generates a million a year in revenue. However, how much profit do you make? Of course, you don't have to tell us details; it's enough to give a vague idea of how the company is doing.

$210 as current income vs $150k in 2012? Did you mean $210k, or do you really mean your income now is $200 (a week? month?). That kind of drop is hard to understand, so I'm betting there's a typo in there somewhere.

It's hard to understand from your post, but it seems like you have a cash flow sitation, rather than a credit situation. This is a fairly common thing for entreprenuers; managing cash flow can be complex, especially if you have large sums of money flowing in and out. Perhaps you should see a professional financial manager about this? 

For the bank loan, it sounds like you might be getting denied because your business plan may not be what they're expecting. Reading your post, it sounds like the simplest explanation; it's hard to understand precisely what your problem is.

Note that I'm not knocking you down; I've been involved with VC firms and angel investors, and getting money out of them is an art. It's all about presenting solid financial projections, and being able to clearly articulate your firm's value prop. Frankly, it's all about the presentation! Lots of people get funded with very shallow business plans, just because they had a kick ass presentation.

Coming back to your immediate problems: How come you don't have a business CC? You sound like you have consumer cards. Why not Amex Plum, Chase Ink, those kinds of cards? Those are designed for small businesses.

---

TYPO: Yes its $210k vs $150k, not $250.00.

BANK LOAN: The bank just provides an application. I fill it out, and the banker takes the 1120s, and that's it. No presentation at all. Too bad I didn't get the case to name drop... The underwriters just say, " NOT ENOUGH [personal] ASSETS."  Isn't that strange? I own 100% of the Corp.  

99 PROBLEMS and Cash Flow is one: So what's the problem? Cash Flow. Why? My experience with past VCs didn't go so well. One VC offered  $100k for 30% equity in my biz. To me that sounds crazzzzzy. I looked into my local empowerment zone  for a loan. They wanted 3% equity for a $10k LOAN.  Everyone wants equity, something I can't give up right now. I've always been dollar signs to everyone but I never get compensated fairly. Even as an employee. I make money off my good ole noggin, but do not product any tangible goods. It's all IP.  ( That reminds me I had a very famous company electronic company steal from me. Maybe its time to go after those funds.)

Anywho... Maybe its because I'm young and have an A-Type personality, but I feel like the VC thing is pimping me. I work 20 hours a day...the monies being offered is not enough for an equity stake. In the end, that kind of deal won't save me or the company. I'm doing this to survive.  I give this up, then I'm finished. However, I do understand  that I will have to give to get, so I created replicas of my business model.

I was in the middle of lining everything up  for my SP biz. In exchange for some high profile clients, I was offering 10% of the revenues to my "affiliate."  That;s a huge leap for me. That is why I'm so worked up about my credit. I needed to convert my SP to another C-Corp. I was going to officially launch in about a week or two. There was a lot that needed be done weekend. I'm not going to have the "personal" cash to front until the end of August. My personal debts are about $6k per month and my biz Amex is at  60K with $40 due this week. Its just bad timing. By Dec all of my personal "credit card" debt could have been paid off  including the slashed lines with $22k and $5k. 

BIZ CC:  I can't get one to save my life! It has always taken a relative for me to get a biz CC for each Corp. Using relatives are such a headache. I have to keep checking their credit and paying off their bills ( that's part the living situation I previously mentioned) just to keep the cards from being closed. We have tried to get another ( Chase, BOA, etc.) but the apps all come back as no. Even when my relative have zero balances across the board, the banks refuse to give him the card. It could be 2 inquiries in the last 6 months, and we get the "too many inquiries" nonsense.  Another problem, they do not make anything near what I am making, so if we get F/R... definitely  screwed unless its AMEX. At least AMEX only wants to see a 1120 during a F/R.  AMEX won't approve us for a PLUM or anything else, but they will let us charge up to $60k on Corp 2 charge card. I think someone finally looked at the 4506 transcript because we could not even do 2k for a LONG time.  I know that sounds good, but that Corp 2 isn't the one making all the money. Now, I'm making all the money as an SP. When my AMEX Plat was active they declined every app. Could be due to my hard limit of $5k.

Additionally, I know I've already crossed the line saying, I'm using Corp 2 cc  as the SP biz  host /third party service. I use that CC on day 1, and when the funds get DD, I pay it back to Corp2 the very next day. With this new launch, that's not going to work. I now have other ppl in my pockets( will be hiring a CPA and affiliates.)  I need everything to be separate. Besides,  if I ever get audited,  the state will eat me alive for that "third-party" crap. In fact, they tried to get Corp2 for $75k in unemployment that wasn't owed at all- no employees! 

( If my post sounds a little off. Last month learned that "celiac" is causing dysphagia and dyslexic-like symptoms. Since I'm aware of this, I hire proofreaders  as needed.)

BTW, thanks for your insight. 

[RandomCreditDude]

Hey OP,

Sounds like you need to get in the professionals. Speak to a lawyer, a financial advisor etc. With the numbers you're talking about, you should have no problem getting some top quality people to help restructure your finances. 

Your problem is a bit more complex than the ones normally seen on these boards, and given that this is your livlihood we're talking about, you gotta sit down with someone who knows about these issues, and share your financials in great detail with them. 

Perhaps there are people on these boards who can help, but without knowing the ins and outs of your business, we can't help. Without seeing your cash flow statement, balance sheet, income statement, etc.. 

Good luck!

[SAIDFICOMUSTBEASCAMLOL]

---

@dddewdrop wrote:

  I would recommend not carrying balances on your cards at all for a while. It sounds like you can either afford to pay them down at your income level or you can restructure your business situation so you have business cards to carry some of your business debt. I think creditors got spooked by the dollar value of your total debt outstanding regardless of your debt as percent of available credit.  If possible pay down that debt and get it off your credit reports and you can move on from there with a clean slate.

---

Thank you for your reply. I agree with you. It's just bad timing. I was in the middle of launching a new service to some very important people. I don't come form a wealthy family, everyone who has succeed, had to fight for what some people just "get."  They got it, but they don't share anything other than finger pointing or 50 bucks here or there. It kills me because I've been fortunate to get the opportunities people would literally cut throats for, and it's just always something in my way, and I have to past them up. My family and friends declare, I'm going to be extremely successful one day. I see it, but at times don't  because I feel like I'm on the verge of having a stroke almost everyday.

That being said,  I cried, got mad, and now I'm just going have to get over it and make it happen another way.  Get rich or die trying.  ( Did I just quote 50 Cent? SMH I've officially lost it  

"I have learned that success is to be measured not so much by the position one has reached in life as by the obstacles he has overcome while trying to succeed. "
Booker T. Washington

[SAIDFICOMUSTBEASCAMLOL]

---

@RandomCreditDude wrote:

Hey OP,

Sounds like you need to get in the professionals. Speak to a lawyer, a financial advisor etc. With the numbers you're talking about, you should have no problem getting some top quality people to help restructure your finances. 

Your problem is a bit more complex than the ones normally seen on these boards, and given that this is your livlihood we're talking about, you gotta sit down with someone who knows about these issues, and share your financials in great detail with them. 

Perhaps there are people on these boards who can help, but without knowing the ins and outs of your business, we can't help. Without seeing your cash flow statement, balance sheet, income statement, etc.. 

Good luck!

---

Thank you. I appreciate your comment. Like the other posters, I definitely agree with you. I will seek out professional advisement this week. Living like this is driving me crazy. It's affecting my relationships with everyone, including my moody pre-teen. I know myFIco is a credit forum, but you all have made me feel so much better. Lately, I have not come across too many genuine people. Must folks  (unless I lie about my name) tend to see is dollar signs until I explain "overhead" to them.

Thanks again!

[SAIDFICOMUSTBEASCAMLOL]

---

@GatorGuy wrote:

You certainly have one heck of a cash flow problem. Before you start paying down accounts try calling some of the backdoor numbers to the EO's and explain your situation. See if you can get your limits raised and express you willing to provide whatever support they would like.

You really need to open some business accounts and do it with a CU or someone who cares about your business. A few LARGE TL's are what you need rather than 20 small ones. I just opened an account with Navy Federal. They asked for minor documentation but were VERY generous on both my personal CC and a business CC. You will also have an easier time explaining your situation.

Work on getting your fixed payments down. See if you change your repayment options on your student loans. If they are over $30k, typically you can take them out to 25 years, not that you want to take that long to repay but just lower the payment so if you need to pay the minimum one month you can, and then make it up the next.

This is all assuming what you stated was correct and you aren't leaving anything else out like derog's on your reports, BK's, etc. Typically I haven't heard of accounts being closed unless you opened like 5 new accounts in one week. Especially if you have been paying on time.

---

My problem... I have no credit cards to increase. Everyone has closed my accounts. I had accounts with Penfed and PSECU ( 20K suspended.) Once PF slahed and then closed me, everyone else followed. Yesterday, I called Discover to try to get an CLI on a $1k  card, and the guy looked at the CR and said he could not because of the wacky ratio on my PF accounts.  I said to myself, you have to be kidding me?! I had this account for over a year. Got it with a 750 score, 10k+ credit limitS on my other accountS...never paid late to anyone...have no collections or deg and I cant a $1500 increase? I don't want to think negatively, but I think he's going to close my account and my 8k IT (just got approved for.) He did say pay down the PF. I mean that was a given, but unless I'm ready to pay off about $15000 at once, it won't help.

If I can get my Amex Plat with at least a 5k limit back, I will be good to go. 

The truth: I applied for new credit because my ratio was horrible and no one was increasing.  I didn't realize Experian did not refreeze my report.  Two creditors ( forget which 2)  pulled that report along with TU/EQ. AMEX saw it.  They played it smooth. They waited for me to make my statement cut payment.  BAM. As soon as AMEX appeared as closed, GE closed all my accounts the next day. Sure the APRs were crazy, but I was using them for ultization. 

I just hope that I'm not blacklisted or something stupid like that. I had a Virgin Amer CC (2010/11.) My limit was 3k. I would use it and PIF and then one day after going to the pharm and spending 90 bucks, they closed me for no damn reason. The rep asked me on the phone "how can you afford to keep making $3000 payments." **bleep**? I said I have a JOB... I work. Ever since, all of my apps  to Barclay ( even with a good credit score - no balances and no more than 3 inqs) have been declined. That reminds me of the Capital One thing, I SUED THEM in court and won a few years ago. Now the Cap1 scenario I can understand. Good ole fashion beef. 

[SAIDFICOMUSTBEASCAMLOL]

Here's one to laugh about... 

TU FICO  ( Fako says 656 via Truecredit and MyPriv)

My TU FICO was 731 less than 7 days ago.