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Business/Personal Credit Card - $50-75k

New Member

Business/Personal Credit Card - $50-75k

I'm starting a small software business and need to get some credit.  Unfortunately, first thing I need to do is build the software before any revenue, so loans are an issue.  I've got $100k equity in my house, so I can only get $20k with 20% of loan value.  So - with such a small amount to begin with, I was going to look at a credit card.  I need $50-75k - smaller for a loan but big for a credit card.  Money would be spent over the next year with a one-time sale covering the total amount spent.

 

Currently, I've got the following personal cards (limits and current balances):

Chase Visa - 23k out of 40k

Chase Visa - 8k out of 11k

Discover - 5k out of 8k

Best Buy Visa - 800 out of 8k

 

Credit score with Equifax is 742.

 

I know I can get a new credit card - but the question is for how much?  There are all kinds of calculators to tell you what card to get - none of them talk about credit limits.  My fear is hard enquiries that kill my credit because I asked too much.

 

BTW - if anyone has a better path than personal credit cards for this...please let me know.

 

Dude95

Message 1 of 14
13 REPLIES
Established Contributor

Re: Business/Personal Credit Card - $50-75k

As a start up company I'm not sure going into credit card debt $50K-$75K is the best decision. I understand you will have up front cost immediately but with any start up/business opportunity it sounds like you need to work on getting investors. I would spend some time putting together a business plan (assuming you don't have one) and setting appointments/meeting with business leaders/developers in your space to look at investment opportunities. Or at the very least a loan that gives you an extension to start paying on it.

 

Seeing you're already in substantial debt (I don't know you personal finances) so these balances may not be an issue for you but I would say building any further CC debt is not something I would entertain. Good luck to you and the business, ohh and welcome!

Message 2 of 14
Valued Contributor

Re: Business/Personal Credit Card - $50-75k

+1 above...but again, you will do what you think is best for you.

 

I personally would (like above) get a business plan and try to talk to family, friends or potential investors.  Investors LOVE to see that you will make money to pay them back.  A great plan to present will be the key.  If that was not an option, why not take a personal loan with a local CU? Do you REALLY need $75k, not sure local CU would give you that much.

 

Good luck Smiley Wink




FICO 8 Scores EQ 704 / Goal 750, EX 706 / Goal 750, TU 724 / Goal 750

FICO 9 Scores EQ 726 / Goal 750, EX 683 / Goal 750, TU 726 / Goal 750
Message 3 of 14
Moderator

Re: Business/Personal Credit Card - $50-75k

IMO with your current balances and utilization you would be hard pressed to get any credit card with a decent limit as your utilization is high on several cards > 50%.  Also not one bank every if good utilization would approve you initially for 50k unless your income is extremely high and your other CL's warrant it along with your credit profile.  CU would be your best bet, but I certainly wouldn't do a CC for the amount you want to do for this venture even if you were able to get get several cards that would give you what you needed.  Others I am sure will chime in with there advise on how to get this venture off the ground w/regards to financing.

Chase | Citibank | Amex | BofA | PenFed | NFCU | Discover | Barclay's | US Bank | Fifth Third Bank | FNBO | BB&T
Message 4 of 14
Valued Contributor

Re: Business/Personal Credit Card - $50-75k

OP, have you looked into the government programs? Not sure what state you're in, but here in California, we have them.  You will get financial help to get your business off the ground.




FICO 8 Scores EQ 704 / Goal 750, EX 706 / Goal 750, TU 724 / Goal 750

FICO 9 Scores EQ 726 / Goal 750, EX 683 / Goal 750, TU 726 / Goal 750
Message 5 of 14
Community Leader
Super Contributor

Re: Business/Personal Credit Card - $50-75k

Welcome to the board.  Based on the high balances you have now, it isn't a good idea to apply for new credit and even if you were approved, it won't be at the limit you are looking for it to be at.

 

Instead, look into state and federal programs for your business.  Depending on how long you have been in business, you can also try for an SBA loan also.

Message 6 of 14
Valued Contributor

Re: Business/Personal Credit Card - $50-75k

But I always thought SBA wanted personal assets  like house  to secure the deal. I never had an SBA loan. 

Message 7 of 14
Community Leader
Super Contributor

Re: Business/Personal Credit Card - $50-75k


Backwoods wrote:

But I always thought SBA wanted personal assets  like house  to secure the deal. I never had an SBA loan. 


No, you don't need assets like a house to secure the deal..

Message 8 of 14
Valued Contributor

Re: Business/Personal Credit Card - $50-75k

Learn something new everyday

Message 9 of 14
Regular Contributor

Re: Business/Personal Credit Card - $50-75k

OP, if you let me know what state you're in I may or may not know groups of angel investors. I'd have to screen the concept through PM or email to see if it is something they would want to see.

 

Happy to help if I can.


Gardening from 10/1/2017 to 4/1/2018.
Message 10 of 14