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Strategic Credit Moves: Seeking Advice to Maximize 0% Business Credit

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creditscaling
New Visitor

Strategic Credit Moves: Seeking Advice to Maximize 0% Business Credit

Hey everyone - first-time poster here.

 

I’m at a point where I need to be very strategic about my next steps to leverage improvements in my personal credit for maximizing 0% business credit for a new business opportunity.

 

Here’s where I currently stand:

 

Personal Credit Cards: 11 open accounts with a total limit of $18,650.

Cards: Aspire, Bread Amex, Discover, Best Egg, Capital One, Upgrade, Mercury, Merrick, Ally, Mission Lane, Apple-GS

Utilization Rate: 3.75%

Credit Scores (as of today):

• Experian: 719

• TransUnion: 725

• Equifax: 598 (delayed reporting of paid-off balances)

Account Details:

• Average Age: 4 years, 9 months

• Oldest Account: 15 years, 2 months

 

I have two hard inquiries for personal loans from local credit unions, dated six months ago (4/29/24). These were denied due to high utilization at the time. I haven’t opened any new personal cards since 2022.

 

Business Background:

Primary LLC: Active since 2018 with a monthly cash flow of $5-10k, managed through a PNC account (some established business banking history).

Other LLCs: Three LLCs opened in 2022, no banking activity or cash flow yet.

 

I’m aiming to build relationships with large national banks like Chase, U.S. Bank, Wells Fargo, and B of A. Should I include PNC? Notably, I previously had a Chase card go to collections in 2018, which was settled in 2021 (doesn’t appear on my personal credit report).

 

My Questions:

 

1. Does my prior Chase collection history (even though settled and not showing on my credit report) impact my chances of approval for new personal or business cards with them?

2. Should I consider opening 1-2 new personal cards before applying for business credit, or just proceed with business credit applications directly?

3. What’s the best approach to maximize my chances of securing the highest amount of 0% business credit upfront?

4. What action plan would you recommend to increase my likelihood of success?

5. Are there any factors I might be overlooking?

 

Any insights or advice would be greatly appreciated!

 

Thanks in advance!

3 REPLIES 3
SouthJamaica
Mega Contributor

Re: Strategic Credit Moves: Seeking Advice to Maximize 0% Business Credit


@creditscaling wrote:

Hey everyone - first-time poster here.

 

I’m at a point where I need to be very strategic about my next steps to leverage improvements in my personal credit for maximizing 0% business credit for a new business opportunity.

 

Here’s where I currently stand:

 

Personal Credit Cards: 11 open accounts with a total limit of $18,650.

Cards: Aspire, Bread Amex, Discover, Best Egg, Capital One, Upgrade, Mercury, Merrick, Ally, Mission Lane, Apple-GS

Utilization Rate: 3.75%

Credit Scores (as of today):

• Experian: 719

• TransUnion: 725

• Equifax: 598 (delayed reporting of paid-off balances)

Account Details:

• Average Age: 4 years, 9 months

• Oldest Account: 15 years, 2 months

 

I have two hard inquiries for personal loans from local credit unions, dated six months ago (4/29/24). These were denied due to high utilization at the time. I haven’t opened any new personal cards since 2022.

 

Business Background:

Primary LLC: Active since 2018 with a monthly cash flow of $5-10k, managed through a PNC account (some established business banking history).

Other LLCs: Three LLCs opened in 2022, no banking activity or cash flow yet.

 

I’m aiming to build relationships with large national banks like Chase, U.S. Bank, Wells Fargo, and B of A. Should I include PNC? Notably, I previously had a Chase card go to collections in 2018, which was settled in 2021 (doesn’t appear on my personal credit report).

 

My Questions:

 

1. Does my prior Chase collection history (even though settled and not showing on my credit report) impact my chances of approval for new personal or business cards with them?

Yes

2. Should I consider opening 1-2 new personal cards before applying for business credit, or just proceed with business credit applications directly?

No, you should just proceed with a business credit card application (once EQ has reported)

3. What’s the best approach to maximize my chances of securing the highest amount of 0% business credit upfront?

You should not expect a lot up front. Amex is the most user friendly in terms of getting periodic credit limit increases.

4. What action plan would you recommend to increase my likelihood of success?

Applying for an Amex Business Cash card.

5. Are there any factors I might be overlooking?

Before applying, try for soft pull CLI's with Discover and Capital One. I don't know if your other lenders have soft pull CLI's but if they do, try with them as well.

 

Any insights or advice would be greatly appreciated!

 

Thanks in advance!


 


Total revolving limits 581520 (516320 reporting) FICO 8: EQ 710 TU 711 EX 718

Message 2 of 4
creditscaling
New Visitor

Re: Strategic Credit Moves: Seeking Advice to Maximize 0% Business Credit

@SouthJamaica - Thank you for the response!


@SouthJamaica wrote:

@creditscaling wrote:

Hey everyone - first-time poster here.

 

I’m at a point where I need to be very strategic about my next steps to leverage improvements in my personal credit for maximizing 0% business credit for a new business opportunity.

 

Here’s where I currently stand:

 

Personal Credit Cards: 11 open accounts with a total limit of $18,650.

Cards: Aspire, Bread Amex, Discover, Best Egg, Capital One, Upgrade, Mercury, Merrick, Ally, Mission Lane, Apple-GS

Utilization Rate: 3.75%

Credit Scores (as of today):

• Experian: 719

• TransUnion: 725

• Equifax: 598 (delayed reporting of paid-off balances)

Account Details:

• Average Age: 4 years, 9 months

• Oldest Account: 15 years, 2 months

 

I have two hard inquiries for personal loans from local credit unions, dated six months ago (4/29/24). These were denied due to high utilization at the time. I haven’t opened any new personal cards since 2022.

 

Business Background:

Primary LLC: Active since 2018 with a monthly cash flow of $5-10k, managed through a PNC account (some established business banking history).

Other LLCs: Three LLCs opened in 2022, no banking activity or cash flow yet.

 

I’m aiming to build relationships with large national banks like Chase, U.S. Bank, Wells Fargo, and B of A. Should I include PNC? Notably, I previously had a Chase card go to collections in 2018, which was settled in 2021 (doesn’t appear on my personal credit report).

 

My Questions:

 

1. Does my prior Chase collection history (even though settled and not showing on my credit report) impact my chances of approval for new personal or business cards with them?

Yes

2. Should I consider opening 1-2 new personal cards before applying for business credit, or just proceed with business credit applications directly?

No, you should just proceed with a business credit card application (once EQ has reported)

3. What’s the best approach to maximize my chances of securing the highest amount of 0% business credit upfront?

You should not expect a lot up front. Amex is the most user friendly in terms of getting periodic credit limit increases.

4. What action plan would you recommend to increase my likelihood of success?

Applying for an Amex Business Cash card.

5. Are there any factors I might be overlooking?

Before applying, try for soft pull CLI's with Discover and Capital One. I don't know if your other lenders have soft pull CLI's but if they do, try with them as well.

 

Any insights or advice would be greatly appreciated!

 

Thanks in advance!


 


Thank you for the response!

Message 3 of 4
creditscaling
New Visitor

Re: Strategic Credit Moves: Seeking Advice to Maximize 0% Business Credit


@SouthJamaica wrote:

@creditscaling wrote:

Hey everyone - first-time poster here.

 

I’m at a point where I need to be very strategic about my next steps to leverage improvements in my personal credit for maximizing 0% business credit for a new business opportunity.

 

Here’s where I currently stand:

 

Personal Credit Cards: 11 open accounts with a total limit of $18,650.

Cards: Aspire, Bread Amex, Discover, Best Egg, Capital One, Upgrade, Mercury, Merrick, Ally, Mission Lane, Apple-GS

Utilization Rate: 3.75%

Credit Scores (as of today):

• Experian: 719

• TransUnion: 725

• Equifax: 598 (delayed reporting of paid-off balances)

Account Details:

• Average Age: 4 years, 9 months

• Oldest Account: 15 years, 2 months

 

I have two hard inquiries for personal loans from local credit unions, dated six months ago (4/29/24). These were denied due to high utilization at the time. I haven’t opened any new personal cards since 2022.

 

Business Background:

Primary LLC: Active since 2018 with a monthly cash flow of $5-10k, managed through a PNC account (some established business banking history).

Other LLCs: Three LLCs opened in 2022, no banking activity or cash flow yet.

 

I’m aiming to build relationships with large national banks like Chase, U.S. Bank, Wells Fargo, and B of A. Should I include PNC? Notably, I previously had a Chase card go to collections in 2018, which was settled in 2021 (doesn’t appear on my personal credit report).

 

My Questions:

 

1. Does my prior Chase collection history (even though settled and not showing on my credit report) impact my chances of approval for new personal or business cards with them?

Yes

2. Should I consider opening 1-2 new personal cards before applying for business credit, or just proceed with business credit applications directly?

No, you should just proceed with a business credit card application (once EQ has reported)

3. What’s the best approach to maximize my chances of securing the highest amount of 0% business credit upfront?

You should not expect a lot up front. Amex is the most user friendly in terms of getting periodic credit limit increases.

4. What action plan would you recommend to increase my likelihood of success?

Applying for an Amex Business Cash card.

5. Are there any factors I might be overlooking?

Before applying, try for soft pull CLI's with Discover and Capital One. I don't know if your other lenders have soft pull CLI's but if they do, try with them as well.

 

Any insights or advice would be greatly appreciated!

 

Thanks in advance!


Thank you for the insights!


 

Message 4 of 4
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