New to forum, looking for high credit limits

[businessasusual]

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@navigatethis12 wrote:

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@businessasusual wrote:

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What kind of limits did you get? The lawyer hasn't set up the business structure yet, so I don't have an EIN or anything yet. That is why I was doing the personal.

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These business cards go off of your personal report anyway, so you can use your social security number and be fine. The employer identification number isn't really important.

I received 2000 for the Chase Ink the first time and was able to get that increased to 5000. One year later I received a mailer for another Ink card and got approved for 17,000.I already have a lot of credit with them, so don't want to push it.

American Express gave me 3000, and I leave it because I only charge shipping to it.

I received 3 preapprvoals for US Bank busienss cards and got 12,500 on each of them, wihth 15 months of no interest. When I applied on my own I got 12,000.

I got 10,000 on the first Bank of America business application and 5000 on the second one, but I already have 15,000 with them, so that's OK.

My history is only three years and all but two accounts were opened about 18 months ago, so if your file is similar or better, you should have no problem at all.

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Did you apply online for the US Bank and BOA? Also, did you do the 3 US Bank and 2 BOA at the same time?

[businessasusual]

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@dpechal wrote:

Also, if I had to pick 1 credit card for you that would give your biggest chance at a high CL it would be the NFCU Flagship Visa.  Im sure alot of members would agree, since you said you had excellent credit it really will be a no brainer.

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I just called NFCU, they do personal loans also up to $50k! 

[TheConductor]

I hate to rain on your parade, but while I would consider business credit essential to getting a new business off the ground, I would strongly advise against financing a business entirely from credit cards.

Consider that you are already leveraging a heavy amount of risk by investing your own time and labor into the business instead of into some other employment. Financing the venture at high credit-card interest rates only compounds the potential risk. If the business should fail, you are left with big balances at big interest rates and no gainful employment to pay them.

There are many lower-risk ways to finance a business.  If you've exhausted them all, I would be surprised.

Have you considered:

- Offering equity to friends & family for taking a stake in the company

- Applying for a small business loan

- Liquidating assets to get started (e.g. selling a second car)

- Crowdfunding sites such as Kickstarter

- Networking in your local community to find angel investors and/or business partners 

- Get paid to build the business. More than one business has started as a consulting gig in which the consultant retains the rights to resell and reuse whatever product they are building for client number one.  Would this work in your case?

I'm not completely advising you against getting some high-limit credit cards and using them as part of your overall funding solution. I'm just saying: diversify your funding sources so that if the business does fail it doesn't torpedo your personal finances completely. Most of the other methods above are harder work than filling out a credit card application, but the reward for that harder work is access to capital with less risk.

[navigatethis12]

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@businessasusual wrote:

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Did you apply online for the US Bank and BOA? Also, did you do the 3 US Bank and 2 BOA at the same time?

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I applied online for all of them. The US Bank ones were about one month apart from each other, since that is when I received the offers. The last two were about one week apart. THe two Bank of America cards were about three days apart.

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@TheConductor wrote:

Have you considered:

- Offering equity to friends & family for taking a stake in the company

- Applying for a small business loan

- Liquidating assets to get started (e.g. selling a second car)

- Crowdfunding sites such as Kickstarter

- Networking in your local community to find angel investors and/or business partners 

- Get paid to build the business. More than one business has started as a consulting gig in which the consultant retains the rights to resell and reuse whatever product they are building for client number one.  Would this work in your case?

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I see nothing wrong with using cards that have 0% interest periods to finance a new business. Loans start charging interest right away. I don't know about the others, but I have had no problems using cards to purchase inventory. Credit cards are very quick and have you with money in about one week.

[TheConductor]

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@navigatethis12 wrote:

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I see nothing wrong with using cards that have 0% interest periods to finance a new business. Loans start charging interest right away. I don't know about the others, but I have had no problems using cards to purchase inventory. Credit cards are very quick and have you with money in about one week.

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But with a loan, you know exactly what the capital is costing you.  The interest rate is fixed and the cost is known.

0% interest periods end, and when they do even the best ensuing interest rate is typically significantly worse than what you'd get from the average business loan.

What happens when your business fails beyond that 0% interest period?  Or when some of the cards you financed it on had no 0% period?

Again, I'm not saying credit shouldn't be used at all, merely that basing an entire business on it is going to be more reckless than diversifying the ways you source your capital.

[navigatethis12]

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@TheConductor wrote:

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But with a loan, you know exactly what the capital is costing you.  The interest rate is fixed and the cost is known.

0% interest periods end, and when they do even the best ensuing interest rate is typically significantly worse than what you'd get from the average business loan.

What happens when your business fails beyond that 0% interest period?  Or when some of the cards you financed it on had no 0% period?

Again, I'm not saying credit shouldn't be used at all, merely that basing an entire business on it is going to be more reckless than diversifying the ways you source your capital.

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Well it depends on how much we are talking. Even though I have 0%, I still won't buy something if I am not sure how fast I can sell it. I don't mean charge up 50,000 if you only have 5,000 on hand. However, theya re a qucik solution if you want to start now, instead of later. I've had two cards end with 0% and I just stopped using them and applied for more. If you are looking for a lot of money, then perhaps a loan is the best way.

[TheConductor]

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@navigatethis12 wrote:

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Well it depends on how much we are talking. Even though I have 0%, I still won't buy something if I am not sure how fast I can sell it. I don't mean charge up 50,000 if you only have 5,000 on hand. However, theya re a qucik solution if you want to start now, instead of later. I've had two cards end with 0% and I just stopped using them and applied for more. If you are looking for a lot of money, then perhaps a loan is the best way.

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Sounds like we are pretty much in agreement.  It just sounds to me like OP is indeed looking for a lot of money.

It would probably be easier to make specific recommendations if we knew more about the business OP is starting and the kind of startup costs and monthly operating costs being expected. 

[enharu]

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@navigatethis12 wrote:

 

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@TheConductor wrote:

Have you considered:

- Offering equity to friends & family for taking a stake in the company

- Applying for a small business loan

- Liquidating assets to get started (e.g. selling a second car)

- Crowdfunding sites such as Kickstarter

- Networking in your local community to find angel investors and/or business partners 

- Get paid to build the business. More than one business has started as a consulting gig in which the consultant retains the rights to resell and reuse whatever product they are building for client number one.  Would this work in your case?

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I see nothing wrong with using cards that have 0% interest periods to finance a new business. Loans start charging interest right away. I don't know about the others, but I have had no problems using cards to purchase inventory. Credit cards are very quick and have you with money in about one week.

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I think it depends on the nature of the business and how the company structure itself is set up.

Using personal cards to finance a business can be risky, even with a 0% interest period. In some cases, it is essentially shifting liability onto one's personal assets. If the business fails, the individual will get dragged down along with it. Then again, for businesses that are set up as sole proprietorship, or for people in certain states, this wouldn't even matter at all since they're full liable regardless.

That being said, I think navigate has provided some really good advice overall.

If high CLs is what OP is interested in, do check out the credit unions. They're usually far more generous than any of the banks are.