| Jul. 24 2008 at 12:47 PM |
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So why not some recommendations?
Check out my blog at www.GreenCPA.blogspot.com
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| Jul. 24 2008 at 12:57 PM |
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I love my Advanta Platinum Business card. No fee, cash back rewards. www.advanta.com.
Good luck,
That Software Guy
That Software Guy - helping you increase sales and profits in your Zen Cart store!
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| Jul. 24 2008 at 1:11 PM |
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I have been with Advanta for over a year. I have never been late and have always made payments well beyond the minimum payments. Never any problems, received bill, paid bill.
In February my interest rate was 8%, March 17%, June 36%. I do not have credit issues. When I called them they said my credit score had dropped. I pulled my credit rating, it is 25 points higher than when I got the card.
I have not been late with any other accounts.
I ask to speak with a supervisor, it took a day before I had a return phone call. I mentioned what the other account manager told me was not true. He said he was sorry, they have recalculated their interest rates.
They will not change the interest rate. They have gone up on interest rates, final straw. I told him to close the account. I will pay it out very quickly. I think this is awful and should be illegal.
Had I had a late payment, was paying minimum payment, or had problems I would perhaps think they could go up. NEVER AGAIN!!
I work too hard for my money.
Edited by: SimplyBren - Jul. 24 2008 at 1:15 PM
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| Jul. 24 2008 at 2:24 PM |
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How do you find out if the credit card compnay reports to D&B and Experian? How do you know if they report on your personal credit report?
It seems to me that all credit card companies whther it is for a personal or business credit card base their decision on your personal credit score and ask for a persoanl gaurantee.
At what point in owning your business does this change? After having the card for 2 years or 5 years?
Lisa Douglas, Inklusion PR ---
public relations for a diverse world
www.inklusionpr.com
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| Jul. 24 2008 at 4:08 PM |
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SimplyBren wrote:
I have been with Advanta for over a year. I have never been late and have always made payments well beyond the minimum payments. Never any problems, received bill, paid bill.In February my interest rate was 8%, March 17%, June 36%. I do not have credit issues. When I called them they said my credit score had dropped. I pulled my credit rating, it is 25 points higher than when I got the card. I have not been late with any other accounts. I ask to speak with a supervisor, it took a day before I had a return phone call. I mentioned what the other account manager told me was not true. He said he was sorry, they have recalculated their interest rates. They will not change the interest rate. They have gone up on interest rates, final straw. I told him to close the account. I will pay it out very quickly. I think this is awful and should be illegal. Had I had a late payment, was paying minimum payment, or had problems I would perhaps think they could go up. NEVER AGAIN!! I work too hard for my money.
Unfortunately, with the current credit crunch, many banks are apparently going through their client base and 'readjusting' rates in order to minimize their risk. This is one of those situations where a few apples have ruined the whole bunch.
Edit: There seems to be some issues with this rich text editor causing some of the above quote to be bold on its own.
Edited by: JGarrido - Jul. 24 2008 at 4:14 PM
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| Jul. 31 2008 at 1:00 PM |
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I have been searching for a Visa or Mastercard that does NOT require a personal guarantee, and is not just a debit card, and so far, after calling many places, I have not found any. I cringe every time I hear the American Express Open card commercials on the radio, because they are a bald-faced-lie. They say something like "Amercian Express gave me credit 2 years before my bank did"....of course they did....because you wrote a personal guarantee for the debt. If the company goes bankrupt and you don't cover it the debt your personal credit is destroyed.
My last business was running for 5 years, had 70 employees, over 2 million in annual revenue, several lease lines from reputable banks, stellar credit rating, and still the corporate officers had to write personal guarantees for the purchasing cards. It was stupid.
Any suggestions?
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| Jul. 31 2008 at 5:03 PM |
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TedLarson wrote: ''' and still the corporate officers had to write personal guarantees for the purchasing cards. It was stupid.
You aren't looking for a loan, you are looking for an angel investor. Since most business startups fail in the first three years of operation, it sounds to me that the banks are simply being pragmatic. If you don't have enough confidence in your business plan to share the risks, then the banks won't think much of it either. Steve Mann
Internet Videographer
MannMade Digital Video
My Email
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| Aug. 12 2008 at 2:02 PM |
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TedLarson wrote:
I have been searching for a Visa or Mastercard that does NOT require a personal guarantee, and is not just a debit card, and so far, after calling many places, I have not found any. I cringe every time I hear the American Express Open card commercials on the radio, because they are a bald-faced-lie. They say something like "Amercian Express gave me credit 2 years before my bank did"....of course they did....because you wrote a personal guarantee for the debt. If the company goes bankrupt and you don't cover it the debt your personal credit is destroyed. My last business was running for 5 years, had 70 employees, over 2 million in annual revenue, several lease lines from reputable banks, stellar credit rating, and still the corporate officers had to write personal guarantees for the purchasing cards. It was stupid. Any suggestions?
Well you answered your own question, banks and credit card companies will require personal guarantees. Banks WANT you to be personally liable if you business fails. If you don't have faith in your business, why should they? Second with small business, your personal credit history is a good indicator of how you will conduct your business, so banks are going to want look at this, but can be more lenient in some areas. I have known people turned down of a particular credit card on the personal side, but were able to get approved for a business card.
While with good business credit history you can obtain trade credit lines and store cards without guaranteeing it personally, and sometimes things that collatoralize itself like equipment or vehicles, but if you want a bank loan or credit(like a credit card) for you business you will need to provide a personal guarantee or collateral of equivalent value no matter how big you business is (btw be aware 2m revenue is tiny in the eyes of a bank and you will fall far within small business underwriting guidelines). Banks aren't in the business of giving away free money no matter who you are, and would be out of business if they did otherwise. I know companies with revenue in the 100's of millions that still have to guarantee their bank credit, so get used to it.
Also be aware that TIME is a factor in small business credit underwriting as well, most will require 2 years of positive credit history, many 3 years, and some 5 years.
If you don't want to personally guarantee:
You should focus on:
- building trade credit, as with good biz credit you usually won't need to guarantee, this will help eliminate cash out and help you build a better cycle, so you have cash from sales by the time your trade line becomes due.
-finding an angel investor to invest in your business if you need capital or a partner/CFO if you have bad personal credit to do the personal guarantees
-having all goods or services paid up front through a merchant account, with good history, you can get the credit line based on future receivables, also getting paid upfront for services will allow you much more liquidity of funds for paying for goods costs or marketing/advertising (both of which you should be able to build lines of credit for)
Edited by: ouchthathurts - Aug. 12 2008 at 2:39 PM
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