topic Re: Help me decide what 2 credit cards to get with the highest possible limits? in Business Credit

Help me decide what 2 credit cards to get with the highest possible limits?

Anonymous — Sat, 12 May 2018 15:56:31 GMT

I will be applying June 10th (once my other 2 cards are paid to under 10% usage and bureaus update)

My credit file:

Average age of accounts 57 months

0 negatives

$1k visa secured, 6 months old, never late

cpl paid off older items, paid off, never late

My Fico scores:

TU will be 799 on the 10th of June (currently showing 669 with high balance)

EQ will be about same on the 10th of June (same as above)

EX will be about the same on the 10th of June (same as above)

Income $75K a year no payments showing on report besides what i listed above.

Goal: # 1 Im 75% complete with a commercial building remodel to open a business, id like a high balance Menards card so i can knock out the remaining remodel quickly (without paying cash as ive done thus far)

Goal: #2 Apply at exact same time for the highest possible credit card I can get to use for stocking business materials, buy $4k worth on first and pay all or almost all toward end on month. Grow shop tooling when not buying stock for business, pay off same way.

Its been a tough road ( $180k spent in cash the last 2 years funding this without any loans, buying it all cash and doing without to keep it that way) but Im close enough now and more than ready to finish so I can open shop and watch the money roll in (or waddle in slowly, i'll take either!) .

I want high limits so if i buy a $2500 load of material i dont max a card and have an ugly credit score for a month till I pay it off! Id rather stay below 40% usage and keep things neat.

HELP!!! Please!

Re: Help me decide what 2 credit cards to get with the highest possible limits?

HeavenOhio — Sat, 12 May 2018 18:08:18 GMT

You might want business cards rather than personal cards. The inquiries will show up on your personal credit report, but the cards themselves won't.

Re: Help me decide what 2 credit cards to get with the highest possible limits?

Anonymous — Sat, 12 May 2018 18:45:30 GMT

Are you using score simulators to predict a 130 point bump after paying your cards (each with 1k CL) down to < 10%?

Re: Help me decide what 2 credit cards to get with the highest possible limits?

pipeguy — Sat, 12 May 2018 20:38:26 GMT

OP, given your limited current card portfolio (2 low-limit secured cards) and your current credit scores which won't go from 669 to 799 if/when you pay down your utility, I would suggest "high limit" credit cards are out of the question for the short term. Given the situation, you have laid out in this and your previous posts, I think you would be better off talking to a local bank or credit union about a business line of credit - I assume you have an ownership interest in the building you are refurbishing - this equity could secure your line of credit.

As far as the Menards card, it is a Capital One backed store card such as Kohls - these (store cards) generally don't start as high credit limits and typically carry higher interest rates. Capital One lending standards for their proprietary branded cards and those that are Cap-1 serviced like Kolhs are not the same. Capital One does offer "business" cards under their brand, but again I caution you about using a credit card for financing a business venture (a $10,000 balance at a modest 18% paid in full over 12 months would be payments of $923 and you'd pay almost $1100 in interest at 27% it would be payments of $966 and just under $1600 in interest).

Your best bet is to talk to a commercial bank about a business line of credit secured by the equity in the business/building.

Re: Help me decide what 2 credit cards to get with the highest possible limits?

Anonymous — Sat, 12 May 2018 20:06:55 GMT

So the simulator is not accurate? It shows, that my increase will be what I had typed previously...

Not sure if it will show up automatically but below is link to before after my payoff. I have $1900 of $2k used on 2 seperate cards.

https://imgur.com/a/z6GOeNz

Re: Help me decide what 2 credit cards to get with the highest possible limits?

Anonymous — Sat, 12 May 2018 20:10:03 GMT

Thanks Pipeguy! I also am considering having my wife open a home equity line of credit, i talked to a friend this morning about those (he has one for like $30 but said he hasnt used it much. This will be my first year showing any income with this business so I dont think Id be able to get any type of business credit line yet, in the next week Im due to sit down with a friend and apply for all the state/Federal #s.

Re: Help me decide what 2 credit cards to get with the highest possible limits?

AverageJoesCredit — Sat, 12 May 2018 23:23:34 GMT

Good advice here from people who understand business. As just an average joe, I'll just add even if by miracle you credit score jumped that much, which it wont, it would be the thinnest 799 and not even comparable to a thick profile with a 799 score. Being your cards are secured, unless you are able to join a CU like Navy who could give a huge limit off the best the odds are low for high limit cards. Best bet would maybe be Discover and Amex who seems to love thin files. Eventually a Lowes credit card might be great as you can get that card up to 35k quite easily with the right score and income. Best of luck on your new business

Re: Help me decide what 2 credit cards to get with the highest possible limits?

Anonymous — Sun, 13 May 2018 01:10:30 GMT

Im looking for a $5k limit minimum. Sad to hear that sim isnt dead on, with it being a myfico I figured it had the right calculations. Im looking to pay off each month and only run these cards temp in the begining, not use them long term or start to leave a balance on them. I just need something to fill in the blanks a cpl 3 weeks here and there.

And btw, Lowes is pretty much useless unless Menards closes its doors, which will never happen.

I did read about Amex on the board, It was the card i had planned to apply for along with Menards, unless you experienced folks suggested otherwise. Guess ill see what my actual score is on the 6th or so....

Any suggestions on how much i should leave on each card? 9% sound ok?

Re: Help me decide what 2 credit cards to get with the highest possible limits?

kshurika — Sun, 13 May 2018 02:32:28 GMT

I agree with everyone else that the likelihood of a 130 point jump in your TU approaches 0%. A few weeks ago, I got a 99 point TU jump in the span of about 8 days, but that was from the removal of a federal tax lien that reported only on TU. Last year, though, for reasons I still can't fathom, I got a 74 point boost in one flash on Experian. It enabled me to increase, with one phone call the 1K SL on a Chase FU that had been approved the day before (reconned from a denial) to 6K . So, miracles do happen.

You're obviously a hard worker, So, quite soon you will have cards with good limits. Best of luck with your business.

Re: Help me decide what 2 credit cards to get with the highest possible limits?

Anonymous — Sun, 13 May 2018 11:37:04 GMT

Thank Kshurika, i disputed a 7 year old closed account that carried a $121 balance, within 12 hours TU replied dispute closed, it was resolved and deleted. Also on the report ive purchased through Myfico my (2) $1k limit cards do not show as secured, would they show differently on a lender report? I may just have my wife add me to the 10 year old mortgage on our home to increase my AAoA.

Ive also read a dozen people saying the simulator was dead on or below the actual increase it predicted. If i see a 750 when my balances go down, i will be happy.

Re: Help me decide what 2 credit cards to get with the highest possible limits?

Anonymous — Sun, 13 May 2018 13:12:32 GMT

It seems like you are focusing in on that score which is fine but there are other factors that can dictate your starting limits. For example if you only have the 2 cards at 1K and they have shown recent high usage, that can be a red flag to other lenders as well.

As an aside, I'm no bussiness expert by any stretch of the imagination, but with my talks with my former employer it seems risky to tie your personal finances in with your bussiness finances. Best of luck with your fledgling bussiness.

Re: Help me decide what 2 credit cards to get with the highest possible limits?

Anonymous — Sun, 13 May 2018 13:29:06 GMT

Thanks. Im new to the credit thing and how it works, just been reading here as much as I can. Ive been at it for 8 years now, part time for the most part but actually kept us afloat while my wife successfuly attended nursing school. This year will be our first year with a store front on the main drag. I honestly dont need these cards or any credit, I can achieve the last little bit with cash, Im just getting antsy and ready to wrap up all the loose ends, focus on jobs at hand, relax and do my thing.

Re: Help me decide what 2 credit cards to get with the highest possible limits?

SouthJamaica — Sun, 13 May 2018 13:48:19 GMT

@Anonymous wrote:
I will be applying June 10th (once my other 2 cards are paid to under 10% usage and bureaus update)

My credit file:

Average age of accounts 57 months
0 negatives
$1k visa secured, 6 months old, never late
$1k visa secured, 6 months old, never late
cpl paid off older items, paid off, never late

My Fico scores:
TU will be 799 on the 10th of June (currently showing 669 with high balance)
EQ will be about same on the 10th of June (same as above)
EX will be about the same on the 10th of June (same as above)

Income $75K a year no payments showing on report besides what i listed above.

Goal: # 1 Im 75% complete with a commercial building remodel to open a business, id like a high balance Menards card so i can knock out the remaining remodel quickly (without paying cash as ive done thus far)

Goal: #2 Apply at exact same time for the highest possible credit card I can get to use for stocking business materials, buy $4k worth on first and pay all or almost all toward end on month. Grow shop tooling when not buying stock for business, pay off same way.

Its been a tough road ( $180k spent in cash the last 2 years funding this without any loans, buying it all cash and doing without to keep it that way) but Im close enough now and more than ready to finish so I can open shop and watch the money roll in (or waddle in slowly, i'll take either!) .

I want high limits so if i buy a $2500 load of material i dont max a card and have an ugly credit score for a month till I pay it off! Id rather stay below 40% usage and keep things neat.

HELP!!! Please!

1. You should only apply for business credit cards when you apply. Do not mix personal and business.

2. You should apply for the Capital One Spark card, as that is the easiest one to get. If you don't get it, then forget about credit applications for now. The downside of the Spark card is that it reports to personal credit.

3. If you have particular suppliers you are going to be using, apply for net 30 accounts with them. That may be the only credit you will get.

Re: Help me decide what 2 credit cards to get with the highest possible limits?

SouthJamaica — Sun, 13 May 2018 13:49:32 GMT

@Anonymous wrote:
Thanks. Im new to the credit thing and how it works, just been reading here as much as I can. Ive been at it for 8 years now, part time for the most part but actually kept us afloat while my wife successfuly attended nursing school. This year will be our first year with a store front on the main drag. I honestly dont need these cards or any credit, I can achieve the last little bit with cash, Im just getting antsy and ready to wrap up all the loose ends, focus on jobs at hand, relax and do my thing.

If you don't need the credit, do it without credit.

Re: Help me decide what 2 credit cards to get with the highest possible limits?

Anonymous — Sun, 13 May 2018 14:45:17 GMT

Thank you!! I will research the Spark card and net30. I also like your suggestion on skipping the credit all together, its kept me with zero payments thus far and forced me to find deals on equipment others would have just paid CC and later dealt with big monthly payments. A few more monthly sacrafices and i'll be where I need to be and debt free as well. Thanks again, i really appreciatte your time.

Re: Help me decide what 2 credit cards to get with the highest possible limits?

creditbroke — Wed, 16 May 2018 13:02:15 GMT

With almost 6 years AAoA, 2 open credit lines, 2 paid off/never late accounts, no negatives, probably a mid 750+ score this time next month, and your telling him "forget about applying for credit?" Seriously? He can probably pull $5k limits on 2 cards in less than a month!

Re: Help me decide what 2 credit cards to get with the highest possible limits?

Anonymous — Wed, 06 Jun 2018 18:10:28 GMT

You guys were right!!!!!!! The simulator isnt dead on! it was 26 points off!!!

So im just at a 773 TU, others have not updated the paid off balances nor the measely $121 7 year old paid/closed..FEELS GOOD, so good!

Thanks to all the Myfico posters, everyday something can be learned lurking these posts!

Ya Baby!

Re: Help me decide what 2 credit cards to get with the highest possible limits?

Anonymous — Wed, 06 Jun 2018 18:13:25 GMT

Another bureau just updated!! TU updates fastest for me, not sure why when others comment it seems slower.

ya bababbbby.jpg

Re: Help me decide what 2 credit cards to get with the highest possible limits?

Time2letgo — Wed, 06 Jun 2018 18:41:20 GMT

@Anonymous
Congratulations!!! That's a great starting limit, especially for Disco. All the best with the business.

Re: Help me decide what 2 credit cards to get with the highest possible limits?

Anonymous — Thu, 07 Jun 2018 17:42:44 GMT

Exp finally update...138 POINT JUMP!!!

138 points! Ya baby!