OfflineDid you know?
One of the easiest ways to improve your personal
financial statement and increase your credit score
is by using business credit.
Business lines of credit will prevent you from doing
harm to your personal credit score because when
you use this type of credit it does not show up on
your personal credit report.
Business loans, lines of credit, and cash advances to
your business are some of the best tools you have to
increase your personal FICO score.
Business credit also improves your personal financial
statement in all these ways:
1. Any asset you purchase with business credit can be
listed on your personal balance sheet.
2. Business debts do not always have to be listed on
your personal balance sheet.
3. Cash advances from your business credit lines can
be held and seasoned in your personal accounts.
Everytime you are approved for a business line of credit
you can immediately transfer balances from your personal
credit cards to your business credit cards. Your credit score
will rise each time you do one of these transfers because
you have eliminated that personal debt from your personal
credit report.
Also, business loans have much lower rates than personal loans.
All your business activity and investments
should be made in the name of a registered
business that you own and control.
If you make investments, like buying real estate
in your personal name, or run a business without
registering a legal business entity you are risking
these consequences.
- Lack of credibility.
- Lawsuits against you personally.
- Loss of your personal assets or home.
- Denial of legitimate tax deductions.
- Poor financing terms.
- Damaging your personal credit.
- Severe limits on how much business funding you can get.
And operating a business as just a Sole-proprietor
is NOT GOOD ENOUGH. You need to separate your
personal activity from your business activity with a
business entity like a Corporation or a LLC.
When you take the time to create a business and you
start to use that business name to get funding or
make investments, you enjoy all these benefits.
- Great credibility in the community.
- Personal liability protection.
- Never risking your personal saving, home or assets.
- The best tax deductions and depreciation.
- Potential home office tax credit.
- Excellent financing terms and low rates.
- Protection for your personal credit.
- Almost no limit on how much business credit you can get.
Elena
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
good to know.......thanks. I could transfer all my personal cc debt to my business cc's. Instant personal fico score increase!
Nice....thanks El
Don't Wish the Past, Create the Future! - DH
Always glad to help you out, you've been so helpful to me, fer sure!
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
How do you get a business credit card, and is it the same as a personal card? It sounds like a good idea to me,but do you need excellent credit. GC JOHN
No, you don't need good credit to get a personal credit card, go to a bank or credit union that you have an account with or open one and put $500 in it. Then ask if you can get a card secured on the money it the account. This will build your credit. Business credit card is totally different, it's scored differently and you need a business entity set up to get it.
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."