subject: Learn To Get Business Credit Cards Without Personal Guarantee [print this page] Learn To Get Business Credit Cards Without Personal Guarantee
The biggest question I get all the time is-
Do you have to personally guarantee business credit cards?
And the answer may surprise you- Absolutely not! Most business owners do not realize that your personal credit is and should be completely seperate from your business credit. The problem is, most people don't know how to build their business credit without using their personal credit. For example, when filling out a visa credit card application for their business, it will ask for a ss# and so they will put it down. What they do not realize is the moment they put their personal ss# down, they have merged their personal credit with their business credit. Why is that a big deal? Well because do you really want your personal assets dragged into your business dealings. Meaning, if things don't fair well for your business, do want your personal assetts exposed? Do you want your personal credit at risk as well? I would think not. This is also great news if your personal credit isn't all that good. When building business credit, bad personal credit isn't an obstacle!
My personal credit was far from great when I first started building my own business credit. In fact, I had filed a Chapter 13 BK. My personal FICO was somewhere around 630, which really isn't even close to being great. Yet, I was able to quickly build up my business credit to a Paydex score of 80. The Paydex score is to business credit scoring, what the FICO is to personal credit scoring, and an 80 paydex is about equal to a 750 FICO. As they say, Not to shabby. So just to reiterate what I've said in previous videos, your personal credit should have no bearing on your business credit, IF and that's a BIG IF, you said your business credit up properly. So if you personal credit is great, than good for you, but it won't really help you get to a great business credit rating any faster than if you have poor personal credit.
If you found this inside information helpful, I've put together a Free comprehensive 5 day eCourse on how to build perfect business credit without personal guarantees or credit. Just visit: http://www.buildbizcredit.com
