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Written by : Glen Kustes |
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- Glen Kustes, Staff Member
how to get business credit with bad personal credit I know I know everybody tells you it cannot be done well I'm here to tell you it actually can be done and I'm gonna tell you how to get it done let's go okay I'm gonna give you the cheat code so that you can get ten thousand dollars in just a matter of months I'm gonna share with you all of my dirty little secrets so that you can get business credit fast and I'm gonna tell you my actual story so you can see exactly what I did right and I'm gonna also tell you a couple of things that I did wrong so you don't make those same mistakes let's first talk about business credit versus personal credit because obviously there is a big difference and I need you to understand the two before I can tell you actually how to get the business credit so first let me tell you personal credits many of you are familiar with FICO scores and you're familiar with TransUnion and Experian and Equifax those are the three credit bureau agencies that report your credit and they really have absolutely nothing to do with business credit because there are two separate entities in fact there's actually entire business credit agency that does not exist in the world of personal credit and that agency is called dun & bradstreet okay so again on the personal side you have Equifax TransUnion and Experian those are the three credit bureaus that report for your personal credit but on the business side you also have Experian and Equifax but the big big company that most people use and that really gets used and they've been around for hundreds of years it's done in Bradstreet and there is a big difference between your personal credit and your business credit again with your personal credit they are looking at your trade lines and they are looking really big at how you use your credit cards and things like that especially your credit cards so I'll give you a really major difference between personal credit and business credit and this is so important as so many people do not understand this in the business credit model like just say a credit card a personal credit card versus a business credit card a personal credit card if you have like a thousand dollar limit and you spend a thousand dollars on that credit card even if you make all of the monthly payments and you are doing really well paying the payments your credit score is going to go to crap because you have used most of the utilization on that card your your credit utilization is a hundred percent so if you have a thousand dollars on the credit card and you use a thousand dollars you used a hundred percent of that credit line and your credit score will tank they just penalize you on the personal credit side for doing things like that but on the business credit side is a business credit card say you get one four thousand dollars which is another big difference that is a really small line on the business side on you know personal credit that's fine but on the business side they usually give you more they give you higher limits usually that's the first big thing but then when you use the credit card they do not penalize you for maxing it out the same way that they do with personal credit so say you get a credit card and it's a thousand dollars we'll use that exam example and you charge a thousand dollars on the business side when they report it as long as you are making the payments they are gonna be like yay good job business you are able to pay your debts they care about how you manage your debts but on the personal side they care that you are not really using your debt they really want you to be very careful they care about things about debt ratio just just a totally different world and some of the things that you do on the personal side you're literally rewarded for on the business side so the business side has so much more to offer so again if you feel bad cuz you have bad personal credit I'm here to tell you do not feel bad we have a solution for you now that you understand the difference between personal credit and business credit let's get into how you build your business credit because again if you have bad personal credit we're not even gonna worry about that we are just gonna ignore that and we're gonna just start talking about how to get some good business credit bills so you don't even care about your bad personal credit well not for right now anyway so let's talk about what you need these are the must-haves in order to really start building your business credit you have to have your business registered with whatever state you're in okay so if you don't have an LLC or you don't have your S corp or your C Corp or your DBA or whatever you don't have you don't have your business registered then you need to have your business register that is clear-cut step one okay name your business and then get a business right get your business registered the next thing once you do that the next steps are super easy most of them are free you want to get an EIN number with IRS gov you want to go ahead and get an email you want to get a phone number you want to get a business website again make your whole business and the funny part about it is it really does not take very long I have students that are able to put their whole business together in a matter of days okay and in some cases it's not even days as hours depending on what state you're in because there are certain states where you can just go online and fill out all the paper to register your business and some states there's a delay you have to wait a few days so if you are in certain states you can get all of this done in a matter of hours and you can have an established business already set up that you can get credit to and the great thing about it is when you do this the business becomes its own entity okay you as a person with your social security number you're an entity you recognize as a thing but if you create a business like I have my business is in its own entity it's almost like it's a separate person it can borrow money it can pay debts and again it can even die so the great thing about it is you this is something that you can duplicate over and over again once you have one Social Security number it's kind of illegal to get another one but if you have a business and you set it up and you get business credit you can repeat that step and I literally have students that have two or three businesses and they have millions of dollars in funding just by repeating what I'm teaching you you just do it one time and they duplicate the process let's get to the next step the next step it's so easy because this is how you can actually get business credit this is some people that will literally lend you money you with bad credit they will lend you money they will lend your business money and some of those companies right now are PayPal Square and cabbage and that's cabbage with a K those three companies right now are what we call subprime lenders in a sense because they are lending startup companies companies that are not two years old companies where the owner of the business does not have great personal credit they ar
Thanks mackino7A your participation is very much appreciated
- Glen Kustes
About the author
I've studied bioinformatics at University of Minnesota-Twin Cities in Minneapolis and I am an expert in biotechnology (outline). I usually feel cold. My previous job was child life specialist I held this position for 20 years, I love talking about climbing and nail art. Huge fan of Steve Irwin I practice rugby league and collect ephemera.
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