Businesses require funding through whichever means they can get it. Credit stacking allows them to have hundreds and millions of dollars as funding without making much of an impact on their personal credit. Yes, you read it right.
Credit stacking is a new approach for businesses to get funding for their ventures. It enables them to apply for multiple credit cards at once to obtain a line of credit. With this method, you can easily get funding for your business by having a line of credit separate from your personal credit.
How it Works
If you find a company that claims to help businesses find unsecured loans, they are most likely credit card stacking companies. Here’s how these companies work.
- They review your credit scores and identify which credit cards are relevant to you. In order to be eligible for most credit cards, you should have a credit score of at least 680 or above. It is also important to remember that the approval is not guaranteed.
- Their workers guide you about the credit card and also help you apply for 5-15 credit cards at once.
- They also focus on credit cards with low APR % for the next six to eighteen months.
- They also target business credit cards more than personal credit cards because the record of business cards doesn’t show up on your personal credit history as long as the payments are made on time. This way, they protect your personal credit score from getting affected by the stacking.
- Once the process is done, you can start using your credit cards, and if you want to get cash out of your cards, they will also teach you how to do that without the cash advance fees.
Downsides of Credit Card Stacking
Credit card stacking is a popular way of funding your business nowadays, but it comes with its fair share of risks. You need to know a lot before getting into this rabbit hole. Everything about credit card stacking sounds great, but you should also know that the stacker’s fees can be very high. Businesses have to pay at least 9%-11% of an approved amount to the stacking companies. It depends on the company and how they take it; it usually is a small business loan variable or fixed rate for them, so you need to ensure that you can bear the fee.
Another problem with credit card stacking is that you will be in a lot of debt. It might not seem like it, but there’s no other way to put it. Some cards may have a very low introductory rate, but the APR can be as much higher once that expires. If you fail to repay them on time, you will become a defaulter in no time. All major cards also require a guarantee, which also might be a problem for small businesses. This is necessary for security because the stacker might come after your guarantee if you can’t pay the debt on time.
When Should I Choose Credit Card Stacking?
Credit card stacking is a good option for funding if you want to choose an unconventional way. Businesses that don’t qualify for traditional funding options like loans choose to do credit card stacking for their companies. Additionally, companies that are new and need the funding more quickly also choose credit card stacking. It is an easy and quicker way to get money. You can apply and receive the funding in 7 to 10 working days.
If you want to apply for credit card stacking, it is important to choose a company that’s well-known and established. There are too many scams in the industry, and many people fall victim to wrong practices. So make sure you do your research before choosing the company, whether it requires is a small business loan variable or fixed rate.
If you are looking for easy funding options for your business, reach out to 0Percent. They have the expertise to provide you with the best funding options. They ensure that you get the relevant line of credit with the minimum impact on your personal credit score. Connect with them and grow your business for more opportunities.