0% APR Business Credit Stacking for New LLCs (20 Cards)

Summary

This video guides viewers through a strategy for stacking 0% interest business credit cards, unlocking up to $100,000 in funding even for new businesses. It highlights which banks offer favorable terms, such as no hard pulls or minimal documentation, and which ones to avoid due to high requirements or personal credit impact. The video also outlines a sample card stacking strategy with specific banks and approval processes, as well as key factors to consider like the duration of 0% APR offers, soft vs. hard pulls, and additional perks like cash transfers and online applications.

Takeaways

• 😀 Avoid F-tier business credit cards like Capital One, Discover, and TD Bank, as they report to personal credit bureaus and often don't offer 0% APR.
• 😀 D-tier cards may offer 0% APR, but they come with long waiting periods, excessive documentation, and outdated approval processes, making them less ideal for quick funding.
• 😀 C-tier cards are decent but have limitations like short 0% APR periods or lower limits. They can be useful in certain situations but are not the best options for credit stacking.
• 😀 B-tier banks like Bank of America, PNC, and Wells Fargo offer better 0% APR terms (up to 18 months), but often require strong relationships or come with paperwork demands.
• 😀 A-tier cards, including Citizens Bank and AMX, are soft pull friendly, have higher approval limits (up to $50K), and may offer 12-18 months of 0% APR, making them great for credit stacking.
• 😀 Chase Bank is the gold standard with 0% APR on purchases for up to 12 months and the potential to scale funding to $100K or more if you have a business relationship manager.
• 😀 Watch out for hidden fees in credit card offers, like whether the 0% APR applies to balance transfers, purchases, or both, and whether it includes direct transfers to a bank account.
• 😀 When stacking credit cards, aim for 0% APR periods of 12-18 months to maximize your time to use the funds without paying interest. Shorter periods are less useful.
• 😀 Pay attention to the required documents. Most cards under $25,000 don't need full documentation, but higher amounts may require tax returns, bank statements, or financial statements.
• 😀 To minimize hard inquiries and optimize credit stacking, look for cards that offer soft pulls or allow you to apply for multiple cards with a single hard pull.

Q & A

What is the main benefit of using business credit cards with 0% interest for entrepreneurs?

The main benefit is that entrepreneurs can fund their business expenses, such as hiring a team, launching products, or running ads, without paying interest on the borrowed amount, allowing them to keep more of their profits for the business.

What is the 'stacking' strategy mentioned in the video, and how does it work?

The stacking strategy involves applying for multiple business credit cards from different banks, allowing you to access a large amount of 0% APR funding without taking on multiple hard inquiries. It uses a combination of cards from different bureaus to spread the inquiries out and avoid hurting your credit score.

Which banks or credit cards should be avoided according to the speaker?

Banks like Capital One, Discover, and TD Bank should be avoided as they either report business activity to personal credit bureaus or offer unfavorable terms such as no 0% interest period or minimal benefits.

Why is the 0% interest period an essential factor to consider when choosing a business credit card?

The 0% interest period is crucial because it gives business owners time to repay borrowed amounts without accruing interest. A longer 0% period, ideally between 12 to 18 months, provides more flexibility and breathing room for managing business finances.

What are some of the hidden pitfalls that business owners should watch out for when applying for 0% interest cards?

Business owners should watch for whether the 0% interest applies to purchases or balance transfers, as well as the length of the 0% offer. Some cards may only offer 0% on certain transactions or may apply interest to new purchases after a short period.

What is the significance of soft pull versus hard pull when applying for business credit cards?

A soft pull does not affect your credit score, making it ideal for building momentum when applying for multiple cards. A hard pull, on the other hand, can temporarily lower your score and may increase the chances of rejection, especially if there are too many in a short period.

Why is it beneficial for some banks to allow multiple credit card approvals with a single hard pull?

This allows business owners to secure multiple credit products with just one credit inquiry, which saves them from multiple credit score hits and maximizes the amount of funding they can access for their business.

What factors should be considered when choosing whether to apply online or in-person for a business credit card?

Online applications are generally faster and more convenient, making them ideal for fast-moving entrepreneurs. In-person applications, on the other hand, may require more paperwork and time but could be useful for building a long-term banking relationship.

What is the advantage of having a business checking account with a bank when applying for a business credit card?

Having a business checking account with a bank can increase your chances of approval and may result in higher credit limits. Some banks also require a checking account to process the application.

How can business owners increase their chances of approval for a higher credit limit with banks like Chase or AMEX?

Building a relationship with the bank through a business checking account or establishing a strong credit history with them can help secure higher credit limits. Some banks like AMEX may even offer higher limits for existing customers.