The Credit Card Dilemma

By: William Morales

Should you use it to invest in real estate? Tough question to ask someone! I applied for business credit cards in 2015; the best thing at the time was 0% interest for a year!!! Not bad right? Flash forward to 2016 and the interest of some of the cards I have (8 in all) has kicked in, and wow, one card in particular is 22%!!!
 
Oh oh…..A Problem

As you can see from above I have 8 cards in all, some have small amounts some larger, it’s a nightmare for me to keep tabs on 4 that I have used.  Plus when I applied for business credit, with a company that specializes in getting credit for business owners, I’m at the mercy of the company, let me explain.
 
I Live Where?

Out of the 8 cards I currently have, I used 4 to invest in education and real estate, the other 4 I decided to close the accounts, now the problem has started, one of the cards, M&T Bank has me living in Colorado, I wanted to close that card, but since I live in New York city I have to show the bank proof that I do live in NYC and never lived in Colorado, So when you used these institutions you don’t know what they are telling the credit card companies/banks about you, we need to be careful.
 
So What’s the Solution You Say?

We need to apply for business credit, not a business credit card!
A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.
However, some companies out there offer "business" credit cards. These companies will often ask for a personal guarantee which I did, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts – I AM!!

How Do We Apply for Business Credit?

There are a few books out there that can show you ways to get a line of business credit, like “Business Credit Decoded: Discover the Secrets and Power of Business credit” by Ty L. Crandall.
Also go to YouTube and enter getting business credit and you will find videos on the subject or google articles on the subject.

What Next?

There are many steps to follow in terms of getting business credit, and I think that’s better than getting Business credit cards from banks, believe me I’m paying for it.  So I will now work on getting my business line of credit ASAP, and follow the steps of some of my mentors who are helping me.
 
Thanks for reading & until next time,

Willie Morales
OneWill Properties, LLC