Credit Tips: Starting a Business with a Credit Card

Posted On: January 1, 2006

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Posted: Thu Sep 23, 2004 11:19 pm
Post subject: Starting a Business with a Credit Card
Paul
Date: 3/4/2001 7:32 pm CDT

I have good credit and employment and would like to finance a side business with credit card debt. Currently I have one card with a $15,000 limit and would like to get an additional $20-40K of credit lined up. Is the best strategy to draw down my first card and then start applying for additional cards or to apply with a bunch of companies and get my financing in place before I start drawing down on my existing cards?

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Posted: Thu Sep 23, 2004 11:20 pm
Post subject: Starting a Business with a Credit Card

Board Monitor - AD
Date: 3/6/2001 11:36 am CDT

Dear Paul,

Credit cards can prove as a great tool for those who need the funds for a business. However, they can also become your worst enemy if not properly managed. If you know you will need the funds within a few months, it may be ideal to start getting the finances in order beforehand.

Here are some tips:

1) One should not apply for too many cards at any one time, one or two at a time, should do.

2) One should consider those pre-approved offers, and if possible, only apply for the high status cards (for the higher credit limits).

3) When running a business, it’s ideal to have a variety of credit cards (if being used to finance the business), this allows for more flexibility in transferring balances and receiving additional low promotional rates.

Sincerely,
Alex Daskaloff
http://www.creditcardfreedom.com

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Posted: Thu Sep 23, 2004 11:20 pm
Post subject: Starting a Business with a Credit Card

tim
Date: 3/6/2001 1:30 pm CDT

Also consider taking a personal loan out on secured property like your car or house. Applying to one or two finance companies will keep those inquiries to a minimum and you will then only have to worry about compensating one source.

I would steer clear of the credit cards because of their ever changing rates and stipulations.

Also simply call your current creditor and tell them that your financial needs have changed and you need an increase or a different type of card.

I know that American Express has several business cards which are great for business expenditures.