Do you ever wonder about the underutilized financial strategies that could help you increase your personal and business credit?
Finding creative ways to grow your credit can be a challenge, but have you ever considered gas credit cards as a tool for improvement?
Should you focus solely on business credit, or should you steer your attention towards generating revenue and improving both personal and business credit simultaneously?
It’s time to shed more light on these issues and provide you with an effective strategy to grow your credit ratings effectively.
In the labyrinth of finance, it’s easy to overlook nontraditional ways to improve one’s financial health, such as gas credit cards. While this may seem like an unconventional approach, it’s a particularly strategic move for specific scenarios.
Let’s dive deeper into this new paradigm, analyze your current situation, and position you ideally in the financial ecosystem.
What Does “$150,000 in Business Credit” Actually Mean?
You may often hear phrases along the lines of “Get $150,000 in business credit“. While such statements might sound alluring, it’s crucial to clarify what they mean.
Most of the time, when they talk about this kind of credit, they’re referring to store and gas cards, not traditional business funding as in Visa, Mastercard, Amex or business lines of credit.
Unlike store credit or gas cards, these lines of credit provide real financial assets that can be transferred to your bank account and used as needed.
How to Decode These Misunderstandings
Interpreting such misleading slogans often raises more questions than it answers.
The ambiguity stems from the fact that people often refer to their credit as being associated with stores like Office Depot, gas stations, and other similar point-based credits that don’t translate to direct monetary benefits.
How Do We Start Building Such Business Credit?
The solution lies in a perhaps unexpected strategy: instead of investing between $500 to $1000 in net 30 payments for unnecessary supplies, why not invest that same money in a secured credit card with Citibank?
Don’t worry; there’s logic to this approach. Shell and ExxonMobil, two of the biggest gas companies, are intimately linked with Citibank, making the bank the ideal credit institution for this strategy.
Why Choose a Secured Credit Card from Citibank?
A secured credit card from Citibank can be accessible even if your credit score is as low as 450-480. This is because, for such cards, the bank will be laxer since you are backing the card with your money.
Once you have established a relationship with Citibank, your next move will be to apply for the Shell regular gas card. This step will further solidify your standing with the bank, as you’ll already be in their database.
So, Where Does Costco Come Into The Picture?
Costco is the crucial link in this strategy owing to its affiliation with Citibank. As a result of this partnership, Citibank receives constant updates from your Costco transactions, each one of them contributing to their evaluation of your eligibility for a Citibank credit card or business account.
To benefit from this arrangement, it would be wise to apply for a Costco Executive card under your business name. This step will not only secure a place for you in their database but will also help build your business credit.
What if Operating with a 640 Credit Score?
Operating with a 640 business credit score? In this scenario, you can confidently apply for Shell and ExxonMobil business credit cards.
This step not only bypasses the need for store cards or net 30s, but it also reduces dependency on the Dun and Bradstreet rating system, putting you in a more favourable position.
A Win for Personal and Business Credit
With this step-by-step approach, you’re bound to save money, time and elevate both your business and personal credit.
The relationship you build with the bank through this process will be beneficial in the future, and getting a Shell or ExxonMobil business credit card will also significantly improve your business credit capabilities.
Even if your business doesn’t qualify for these cards right off the bat, you can start on a smaller scale by acquiring a personal gas card from Shell – not only will this enhance your credit rating, but it will also put you on the path to a business credit card in the future.
An Established Corporation? Build further
Further, if you already have an established corporation set-up, possessing a corporate email becomes crucial to your success.
Applications can be denied due to the lack of a corporate email, underlining the importance of setting up a professional corporation identity.
In conclusion, the approach to building your business credit doesn’t have to be complicated or restrictive.
It can be as freeing as leveraging your relationship with a bank and getting a gas card – a sure-shot strategy to heighten both your personal and business credit scores. So, why not give it a chance?
You might find yourself reaping the benefits of solid credit ratings and expanding business prospects in no time!