Balancing Act - Weighing Options - Looking for the perfect storm

[eyesopen]

Hi All. Wasn't sure what forum to post this on as my questions run the gambit across multiple boards.

I want to start up a small business that requires approx $9000 for the equipment purchase. The market research is solid for my location and others in the field recoup the investment in 6-9 months avg. in the summer months. I have my business plan, domain is ready etc... Just need to purchase the equipment.

• Current TU score is 781. Not sure about Equifax.
• (3) open accounts, $3400 bal due (BoA 10k limit 0% interest, if PIF by 9/12 then 15.99%)
• (2) payments left on my auto loan (0% interest)
• a new mortgage 6/2009 balance is $225,000 
• no other debts

I want to apply for a new credit card, and need a $20k limit with 0% interest to create the perfect storm.

Timing is critical as the season begins in 4-6 weeks where I would be able to recover the investment. (e.g. waiting until the auto and card are paid off will blow the perfect storm scenario.)

Questions:

1. Do business cards get 0% interest offers?
2. A $20k limit with $10k balance (after I buy the equipment) will create 50% utilization and tank my score. (True/False)
3. Or will the utilization calculate from the total credit available? (Adding in $15,000 + from other non-active revolving accounts.)
4. The car loan will be paid off in 2 mths. Then the total credit avail ($21k from the auto loan) will disappear making the % utilization even worse. (True/False)
5. The current BoA card with $10k limit is new as of 10/2011. Should I even bother to ask?
6.  I'll probably get denied and take an inquiry hit on my score for another 2 years. (True/False)
7. Should I find a 0% interest offer for a personal card take what ever limit they offer and split the equipment purchase between cards?
8. Or...should I apply for a loan at one of the Peer to Peer lending sites like Lending Club or Prosper and pay the higher interest (if approved.)

Your advise is greatly valued and appreciated.

Thank you in advance.

[RobertEG]

You might want to look into a business card.

I have, for example, two Chase cards.  The personal account reports to the CRAs, but the business card does not.  Thus, it is excluded from FICO scoring.

The business card thus does not affect my FICO % util, and did not cause a hit on my AAoA when opened.

[eyesopen]

Thanks. What kind of rates do you pay on the business account?

[HoldingOntoHope]

You are probably going to have a difficult time getting that high of a limit on an account for a brand new business even with a personal guarantee. And your BofA account is still relatively new so you don't show a seasoned history of unsecured tradelines. Your mortgage and car loan help a lot but those are secured lines.

I am not going to try and answer all the questions you posed however I think your best options are another personal card and split the expense or the peer to peer. If you are going to be able to recoup your investment in the time frame you suggest you could always pay off either one fairly quickly.

I used Prosper for a peer-peer loan. They were very upfront about what the terms would be before I put the loan up to be funded. My interest rate is only 8% and my credit profile was similar to yours when I opened the loan last year. You may want to look into that avenue. Even if you choose a 3 or 5 year term you can pay it off or add payments early.

[eyesopen]

Thanks for the insightful response. You confirmed what I was thinking too.

Just wanted to put the question out there in the forum before I made the decision.

Thanks again for your time.