If you don’t want to read it, you can watch this video.
There are some people on the internet talking about how some bank is going to give you a $20K or $30K in business credit. That isn’t true. Be sure to watch this video from the beginning to the end and I will be sure to school you on how to play this credit game.
The reason I call this tradeline trickeration is because there are many people out there saying, “Hey, I got unsecured business credit lines. This is true, but they aren’t telling you about the fine print. If you go to Staples and you get a Staples credit card and they don’t ask for your social security number, then you have unsecured credit with no personal guarantee. You have it. That’s the reality of it. But, the problem with that is they aren’t going deep into the details.
I’m going to walk you down the path of how things used to be and how it is today. A long, long time ago on the internet, there was this form and it walked you through the steps of how to get business credit. Number 1 – form an LLC. You were told to go out and get some credit from Uline, Grainger or Staples. Back then if you had $5K or $10K in a bank account, that counted as a tradeline.
So, you get those and you buy something, and wait until it reports and then, BAM! You’ve got a Paydex. Once you had a Paydex, you could go to Ford Fleet and with $2500 down you could get yourself a brand-new truck with no social security number. That was real. It blew my mind. Fast forward, we had the recession of all recessions. It was damn near close to a depression. Then we got the Patriot Act and there was a tightening of the rules.
Many of the banks decreased people’s credit limits. It became a totally different regulatory environment. A lot of the bank products were eliminated. The “no social security” products went away.
Keep hope alive. Some of it could come back. If you have no financial discipline, don’t get that credit. Don’t do it. Don’t even get the Staples card. Don’t do any of that stuff.
What you want to do is to get yourself higher income and more cash flow. Here’s the thing, personal credit is very important for business credit. I don’t care what anyone else tells you. It’s very important.
How you structure your LLC is also important to building business credit. No one’s telling you about that. Many of these flimsy LLCs, you go online and do your incorporation, there are no operating agreements in there or Articles of Organization.
Here’s what I want you to do tomorrow. Call up a CPA or an attorney and ask them how much it would cost for them to set up an LLC for you. Do that. Just do it. They will probably charge $600 to $25,000.
One of the things we’re doing in Hustle Camp is I’m going to teach you how to create your LLCs properly. I’m going to teach you how to fix your personal credit. I’m going to teach you how to develop proper unsecured lines of credit. It could take you six months to two years to do this depending upon your current credit situation. I’m going to teach you how to make more money.
One of the things you should do is monitor your credit. I constantly monitor my credit. I’m going to give you my morning routine. The first thing I do every morning is I got through all my accounts. Here’s something that a lot of folks won’t tell you. When you have big balances in your bank and you get robbed or there is some type of fraud, the bank is not going to do a credit of that money unless they were at fault.
Let’s say you have a bank balance of $2 million and someone robs you of $300,000. The bank will investigate and ask you questions like, ‘What kind of security did you have in place to prevent that?” They aren’t going to take a $300,000 hit. So, if you have large balances, you need to watch them closely. Every morning I go through my bank accounts and credit card accounts to see if anything weird happens.
It’s your money. It’s your credit. It’s up to you to protect it. I’m signed up with the Equifax service and nothing happened to my account.
Plus, here’s a quick tip for you about banking. Stop using your debit cards to shop. Get yourself a rewards card and use that and pay it off every week. This takes discipline.
For your business, you don’t want debit cards for your business. That’s insanity. You may actually want to have an ATM account where the only purpose is to draw money out. That way, if the card is ever compromised, the damage is very limited.
You should never have a debit card to your payroll account. You should never have a debit card to your merchant account. If you don’t have a debit account, your chances for fraud go down so low.
When people do silly shit like run their entire business through one checking account, they are asking for problems.
Everyone needs to get a credit monitoring service. You should monitor your stuff every day or at least once a week. If you are a person making money, you are a target. A lot of these identity thieves will go through your trash. That’s why you need a shredder in your house.
I’m going to give you some tips. Tip #1 – Do not do disputes online. Order a paper copy of your report. Send it in and follow the steps. By doing it online, when you agree to their terms of service, you actually leave some of your rights on the table. Disputing stuff online is one of the dumbest things you can do.
Everyone should create a budget. Get your budget together and find out what you can sell. Then the next stage is to find out what your net worth is. Then increase your income. Then build a business.
There is a lot of misinformation out there. You’re going to have to get your personal credit together to get into these unsecured larger business credit lines. I’m talking about a line of credit from a bank or a Visa or MasterCard or American Express. They’re going to look at your personal score.
Hustle Camp goes into depth on all of these subjects.
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