First post / introduction

[WindyBinky]

Hey all! I've been lurking a little while and I'd like to start contributing & being active within the community. This post serves as a little introduction of how I started and where I am currently along with some of my next goals. I used a template to outline where I'm at. I tried to organize the info best as possible. 

* Current cards: (list cards, limits, opening date)

* Capital one venture one $6,000 limit, Jun 2019

* Apple Card $2,500 Limit, Aug 2020

* Credit one $400 Limit, Sep 2020

* Amex platinum $2,500 Limit (switches Back and forth to no PSSL depending on balance) Sep 14 2022

* Amex delta $5,587 Limit, Sep 14 2022 ( was $8/9k limit decreased)

* Amex BCE $1000 Limit, Sep 14 2022

* Chase Sapphire reserve (originally $15,000 SL but decreased recently to $5000 after I had to hold a balance for business expenses) Sep 29 2022

* Chase freedom unlimited $500 Sep 29, 2022

* Discover It $2000 Limit, Apr 2023

* FICO Score: 689 EXP, 717 TU, 716 Eqf

* Oldest account age: 5 years 4 months

* Chase 5/24 status:

As of today 10/8/24 it’s 6/24, on 10/29 it will be 1/24

* Income: $60,000

* Average monthly spend and categories:

   * dining $200 -/+

   * groceries: $440

   * gas: $880

   * travel: $0

   * other: $ NA - many other expenses unsure what to list

* Open to Business Cards: yes, my next card preferably

* What's the purpose of your next card?

My main objective for my next card is for a Balance transfer. as of April this year I started a new business and I have had to hold the balances on my personal cords. As I mentioned above, I’m primarily using my Chase sapphire card to hold the balances for the business. This has affected my personal credit and it has affected the limit of the card. At that time my credit was around 770 for all 3 Exp, Eqf & Tu.

I have more new business expenses coming up and I’ve been paying down the balance on the Chase SP card (28% interest rate). I would like to transfer the balance to a 0% Apr business card to make the debt the “businesses” responsibility so I can keep everything separate. 

The main reason I haven't made any moves yet is because i thought it would be best for my chase 5/24 to reset next month Incase I went for a chase card. 

* Do you have any cards you've been looking at?

* Chase ink business unlimited

* Chase ink business cash

* Chase ink business preferred( no longer 0% apr?)

* Amex blue business +

* Amex blue business cash

* BOFA business advantage cash & travel ( I have the longest standing relationship with this bank, but no credit cards from them yet)

* Are you OK with category spending or do you want a general spending card?

• General spending

If this info is relevant, I have LLC, EIN, business bank account, Dunn & brad #, listed business address, all set up btw. I’ve been working on establishing business credit through trade lines but still working on it, no paydex score yet but Experian business says 85/100

TLDR:

1st goal/question: Looking for a business card with 0% apr.

2nd goal: get my personal credit back up where it used to be. 

Any insight, recommendations, wisdom, guidance in the right direction is greatly appreciated. 🤝🏼 thanks for reading.

[JoeRockhead]

A couple of issues... Both Chase, and Amex have good business cards, the problem is you seem to have issues with both of them reducing your limits, which doesn't bode well for gaining new approvals, or approvals with useful SLs. Also, neither Chase, or Amex will allow you to transfer a balance from one of their own cards to another (Chase to Chase, Amex to Amex), and Amex BTs aren't always available for new accounts.

Whether or not the expenses are the "business's responsibility" or not, they are your personal responsibility in the end. What you might consider instead is looking into a low(er) interest personal, or unsecured loan from a local CU to reduce your personal reported balances. Stop using your personal cards for business expenses and better manage your reported personal utilization to get your scores up. At that point you can look at the Ink, and other business cards etc... which all generally have 0% for 12 months to better finance some of your business expenses if you feel the need to do so.

[Kforce]

First, welcome to the forum.     

As @JoeRockhead  said, you need to get your personal credit looking better and then

work at getting a business card to keep finances in separate bins.

I am confused as to why so many travel cards if travel is not a category.     

I feel that unless travel is expected to become a large expense in the near

future, you might be getting a set of cards that do not match your needs. 

Just an observation, do not know your future 3-4 year plan.

[WindyBinky]

Hey @JoeRockhead ! Thanks for taking the time to help. Also sorry for my late reply.  I wasn't aware about not being able to BT between Chase to chase & amex to amex. Ill take your advice and put my focus on looking for a personal BT card. Move the chase balance over and continue to pay it down. Do you think chase will return the card back to its original limit of 15K?

I think I have a good starting point here. A new personal BT will increase my overall total credit limit, transfer CSP balance to BT card and pay that down. Free up the balance and utilization on the CSP and *hopefully* it goes back up to its original SL, in turn increasing my overall credit limit further? I might have high hopes there. In combination with these things, I should be in a better spot score-wise in 2 months or so. 

I received a "you have been pre selected" mailer for a BOA BankAmericard 0% for 18 months. Should I look elsewhere or go ahead and go with this option? 

[WindyBinky]

@Kforce  Thanks for the welcome & thanks for taking the time to respond   
In your opinion, where should my personal scores be before i start to think about business cards? 

To answer your question about the travel cards i have, truthfully when i was younger just getting into working on my credit i wasnt looking at what each cards intended use was. I think looking back, my thought process was just to acqurie anything i could. I had little knowledge and i was just going for it. not the best approach i know lol.

I am alot wiser than i was but still learning none the less. 

[JoeRockhead]

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@WindyBinky wrote:

Hey @JoeRockhead ! Thanks for taking the time to help. Also sorry for my late reply.  I wasn't aware about not being able to BT between Chase to chase & amex to amex. Ill take your advice and put my focus on looking for a personal BT card. Move the chase balance over and continue to pay it down. Do you think chase will return the card back to its original limit of 15K?

I think I have a good starting point here. A new personal BT will increase my overall total credit limit, transfer CSP balance to BT card and pay that down. Free up the balance and utilization on the CSP and *hopefully* it goes back up to its original SL, in turn increasing my overall credit limit further? I might have high hopes there. In combination with these things, I should be in a better spot score-wise in 2 months or so. 

I received a "you have been pre selected" mailer for a BOA BankAmericard 0% for 18 months. Should I look elsewhere or go ahead and go with this option? 

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A very common problem with people seeking new credit to BT their way out of a sticky situation, is because of their sticky situation... they often run into the issue of being denied, or end up with an inadequate, useless SL. Not to mention the HPs and new account dings to their scores, as well as the fact that lenders like Chase and Amex keep regular tabs on what their customers are doing with their credit. Your strategy is one I think is going to leave you disappointed. 

Chase and Amex are essentially balance chasing you because they see cause for concern in your history with them, and/or your file. Outside of a low interest personal loan, or a traditional business line of credit, I would strategize on how you can pay down your existing debt, without going into further debt if at all possible. 

If you do get a personal loan to pay off your revolving debt, you'll also need to stop using your cards for anything more than what you can afford to PIF each month like they're debit cards. If not you're going to be in more trouble. 

The vast majority of pre-approved mailers sent out are usually done so by a third party where recipients are often selected because they meet a minimum threshold to be considered eligible to apply... I'd put no weight in their reliability to produce a useful approval.

[Kforce]

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As often the case, @JoeRockhead's answer was on the money.

With the debt tied to business stuff, it makes the issue, unstable.

I would not get a BT card or loan on the personal side of finances for a business.

At this time, interest rates would be very bad, and BT's limits to small to help if you could get either.

You need to attack the problem head on with budget and paying it down.

[titancylinder]

Going to be blunt here. 

Most business cards these days block balance transfers. Every now and again will see a balance transfer offer,  but it is exceedingly rare on the Business Cards, at least from the mainstream lenders. 

Amazing advise in this thread. But I'd go further and suggest you quit charging to your credit cards all together, lock them and sock drawer until you get your balances in check. Famously quoted, Finances over Fico. 

There are a few debit cards that offer cash back. But to stop the bleed you gotta get that utilization down. They may continue to balance chase you until they ultimately close the cards. Who knows what the computer and or analyst will do. 

I personally would start closing all high annual fee cards or try to get them product changed to lower fee products. Amex plat to Amex Green for example. CSR to CSP. 

If the business isn't providing enough net income to pay your debts down every month, then it's time to evaluate if it's a business or a hobby. Further, perhaps it's time to shelve the business and find another job. I get this is hard to take. I've owned a business since I was 17 years old. I totally understand how hard it is to build and get off the ground. 

Wish you the best of luck! Be sure to continue to share your journey for others to learn and follow.