Business Credit Building Step 4: Getting Revolving Credit
After 5 trade lines are established using vendor accounts, obtaining revolving accounts is the next step. Revolving accounts are cards a business owner can use and not be required to pay the full balance owed each month. Revolving account approvals will begin coming from stores. Store revolving credit must be obtained before the business owner starts getting Visa, MC, Amex, type cards. Most stores will NOT approve a business owner for business credit unless the owner has an established credit profile and score, just like in the consumer world. Vendor accounts must be used first to establish a profile and score, then store credit can be obtained. It usually takes only 90 days or less to establish a score and profile with trade lines. Most major retail stores offer business credit accounts, although they don’t promote that they do. Major retailers including Walmart, Target, Best Buy, Amazon, Sam’s Club, Costco, Staples, Office Depot, Lowes, Home Depot, BP, Chevron, and most other retailers all offer business credit. And most of these retailers will approve you for new credit once you have a credit profile established, have a good business credit score that results from you paying your bills as agreed, and once you have 5 payment experiences or more established on your business credit profile. Once 10 total accounts are on the credit, an owner can then start applying for Visa, MC, Amex type credit. Approval amounts will be equivalent to the highest credit limit account on the business report. Try to have 10 accounts with at least one of them having a 10k high limit. It is essential to keep using the credit, keep applying for more, and talk with credit providers to raise credit limits. If you do this, business credit will keep growing until higher limit credit lines are obtained, within 6-12 months.
Building business credit is truly as easy as building consumer credit once you know the proper steps to take. Now you know the 4 essential steps to take to build business credit that’s linked to your EIN and not your SSN. Now the next step is to take action on the first step and make sure your business is set up credibly. As you are doing this get your business credit report access established. Then you can start building your vendor credit to establish your credit profile and score so you can start securing revolving credit accounts. Good luck with building your business credit!
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Shield Advisory Group www.shieldadvisorygroup.com [email protected]
Ph. 321-430-6828 Fax. 888-281-3146