WEBVTT - Study Hall: STEPS TO BUILD BUSINESS CREDIT 0:00:00.080 --> 0:00:03.400 Weight loss solutions are not one size fits all. Hers 0:00:03.480 --> 0:00:05.720 makes it simpler to get started and stick with a 0:00:05.760 --> 0:00:09.240 weight loss plan backed by expert guided online care that 0:00:09.320 --> 0:00:12.560 puts your weight loss goals first. These include oral medication 0:00:12.720 --> 0:00:16.919 kits or compounded GLP one injections through Hers. Pricing for 0:00:17.079 --> 0:00:19.759 oral medication kits start at just sixty nine dollars a 0:00:19.800 --> 0:00:21.959 month for a ten month plan when paid in full 0:00:22.040 --> 0:00:25.400 up front. No hidden fees, no membership fees. 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Prescription required restrictions at for hers dot com apply. 0:01:00.200 --> 0:01:02.760 So we got a lot of entrepreneurs that listen and 0:01:02.880 --> 0:01:05.800 obviously people have their personal credit and a lot of 0:01:05.800 --> 0:01:08.560 these entrepreneurs hubs apply for business credit. Can you talk 0:01:08.600 --> 0:01:10.880 to them about the importance and the impact that your 0:01:10.920 --> 0:01:13.440 personal credit can have on your business and how long 0:01:13.480 --> 0:01:16.160 it takes to establish a healthy business credit loan. 0:01:17.040 --> 0:01:19.400 Yeah, And the great thing is the impact that it 0:01:19.480 --> 0:01:22.920 could have. Man is like you know, that's the main 0:01:23.040 --> 0:01:26.360 reason why got credit entered back into the world of 0:01:26.400 --> 0:01:28.199 business credit. You know, we did it back in the day. 0:01:28.440 --> 0:01:30.200 We didn't we didn't know that there was a need 0:01:30.200 --> 0:01:33.320 for it. But just like Ian sev four, you know, 0:01:33.560 --> 0:01:36.400 a lot of entrepreneurs were born. You know, a lot 0:01:36.400 --> 0:01:40.360 of people started businesses over these last couple of years, 0:01:40.400 --> 0:01:42.400 and there's going to be more. Now. Here's the thing. 0:01:42.560 --> 0:01:44.399 If you have great credit. I wish I would have 0:01:44.400 --> 0:01:47.240 known this when I opened my business back in twenty ten. 0:01:47.920 --> 0:01:51.640 Instead of using your personal credit to start your business 0:01:51.720 --> 0:01:54.040 or to grow your business, you could do it with 0:01:54.080 --> 0:01:56.160 you know, you're going to get an inquiry anyway. And 0:01:56.160 --> 0:01:57.920 here's the thing. Everybody always says, Oh, I don't want 0:01:57.920 --> 0:01:59.320 to do business. I don't want to do a PG, 0:01:59.480 --> 0:02:01.640 which is a personal guarantee. Oh I don't want to 0:02:01.640 --> 0:02:03.960 do a personal credit check for that credit card. Well, 0:02:04.000 --> 0:02:05.800 weren't you going to do the credit check for your 0:02:05.920 --> 0:02:08.120 personal anyway, Like, weren't you going to apply for that 0:02:08.200 --> 0:02:11.200 car on your personal credit anyway? So here's the thing. 0:02:11.840 --> 0:02:12.120 Start. 0:02:12.200 --> 0:02:14.040 Let if you're a new business or you have no 0:02:14.120 --> 0:02:17.080 business credit, but you have great business credit, you could 0:02:17.160 --> 0:02:20.480 use that to leverage business credit. You were already going 0:02:20.520 --> 0:02:21.840 to apply for a credit card. 0:02:21.800 --> 0:02:24.000 Use your personal credit to leverage the business credit. 0:02:23.840 --> 0:02:26.560 Right And that's the importance is that you can use 0:02:26.600 --> 0:02:28.320 it you were. So here's the thing. If you were 0:02:28.320 --> 0:02:30.520 going to get an American Express credit card and you've 0:02:30.639 --> 0:02:33.520 never had one before, but you were gonna get one 0:02:33.520 --> 0:02:35.919 on your personal credit, and you know you're going to 0:02:35.960 --> 0:02:38.840 open a business, don't get an American Express on your 0:02:38.880 --> 0:02:42.120 personal credit. Just open your LLC and get that American 0:02:42.160 --> 0:02:44.600 Express on the business side you were already going to 0:02:44.639 --> 0:02:46.560 do with Inkory anyway. But now the great thing is 0:02:47.000 --> 0:02:50.480 that doesn't show you want to maintain and keep that 0:02:50.960 --> 0:02:52.639 seven fifty. And the thing is, you know, I wore 0:02:52.680 --> 0:02:54.600 the new balances to the kickball game, you know what 0:02:54.680 --> 0:02:56.639 I mean? And I do appreciate you guys being there. 0:02:56.800 --> 0:02:59.040 It meant so much to have you guys there, and 0:02:59.320 --> 0:03:02.520 I wore the white new balances because you know, the 0:03:02.600 --> 0:03:04.680 thing is, you could you could have a three thousand 0:03:04.720 --> 0:03:07.520 dollars outfit on and get denied for a five hundred 0:03:07.520 --> 0:03:09.560 dollars credit card, you know, which we see a lot. 0:03:10.000 --> 0:03:11.600 And the thing is, it's like, you want to have 0:03:11.639 --> 0:03:14.079 a three thousand dollars outfit, that's great, but just make 0:03:14.120 --> 0:03:15.959 sure that you know that you can either put it 0:03:16.040 --> 0:03:18.520 on a credit card or get approved for a credit 0:03:18.600 --> 0:03:21.079 card with the same amount. And I wore the new 0:03:21.120 --> 0:03:24.399 balances because that signifies good credit. You know, you see, 0:03:24.440 --> 0:03:26.359 you know, you see the older guys with those new 0:03:26.360 --> 0:03:28.480 balances like, oh my god, yeah, that guy got good credit. 0:03:29.320 --> 0:03:31.440 But the thing is is if you use your personal 0:03:31.480 --> 0:03:34.760 credit to leverage and to get more business credit, even 0:03:34.800 --> 0:03:37.000 in the first two years of business, think about it, 0:03:37.880 --> 0:03:41.119 You're never going to have bad credit because you're never 0:03:41.120 --> 0:03:43.800 going to have debt on your personal credit. And I 0:03:43.800 --> 0:03:46.440 think that's the biggest thing where people don't realize that 0:03:46.800 --> 0:03:49.160 you might have to do a personal guarantee, you might 0:03:49.200 --> 0:03:51.320 have to get a personal credit check, you might have 0:03:51.360 --> 0:03:53.520 to run your credit the first couple of times. But 0:03:53.600 --> 0:03:56.520 guess what four years later down the road, you might 0:03:56.560 --> 0:03:58.320 not have to, you know what I mean. And I 0:03:58.320 --> 0:03:59.960 think that's the most powerful thing when it comes to 0:04:00.440 --> 0:04:01.640 personal and business credit. 0:04:02.760 --> 0:04:05.240 What are like the two biggest mistakes you see entrepreneurs 0:04:05.320 --> 0:04:08.320 making when they're trying to establish their business credit. 0:04:09.720 --> 0:04:13.520 I would say the probably the most the biggest one, 0:04:13.640 --> 0:04:16.520 and it's the simplest is using their home address for everything. 0:04:17.720 --> 0:04:20.200 It's the easiest change you could do. You know, get 0:04:20.200 --> 0:04:23.280 a virtual address. Go to Regis, go to Opus, you know, 0:04:23.480 --> 0:04:27.279 get an actual business address if you don't have a 0:04:27.320 --> 0:04:28.920 brick and mortar, so like, if you have a brick 0:04:28.960 --> 0:04:31.960 and mortar building, use that address. You know what I mean. 0:04:32.480 --> 0:04:34.720 If you open your business with your home address and 0:04:34.760 --> 0:04:36.560 you end up getting a brick and mortar a year 0:04:36.600 --> 0:04:39.160 down the road, change the address, Change you with the irs, 0:04:39.279 --> 0:04:41.159 change you with the state, Change it with your bank account, 0:04:41.200 --> 0:04:44.559 change you with all your vendors, all your creditors right now, 0:04:44.760 --> 0:04:48.400 even now, if you don't have a home address when 0:04:48.440 --> 0:04:50.560 you started your business and you're starting a fresh get 0:04:50.560 --> 0:04:52.560 the virtual address first. And the reason why I say 0:04:52.560 --> 0:04:54.880 this is the most common thing is because you know, 0:04:54.880 --> 0:04:57.960 with credit being such a risk factor, you know, if 0:04:58.000 --> 0:05:01.360 you're a pizzeria and you're using your home address for everything, like, 0:05:01.560 --> 0:05:03.359 it looks a little you know, it looks a little suspicious, 0:05:03.360 --> 0:05:04.680 like wait a minute, you're making the pieches in your 0:05:04.720 --> 0:05:06.680 living room or you're making them at the shop. You know, 0:05:06.760 --> 0:05:09.080 if you're a landscaper, if you're a plumber, you know, 0:05:09.200 --> 0:05:12.560 using your home address is the biggest thing. And I 0:05:12.600 --> 0:05:14.240 say the second biggest thing that I would say that 0:05:14.279 --> 0:05:17.160 people make mistakes on is using too much of their 0:05:17.200 --> 0:05:20.159 personal credit when they have good credit instead of actually 0:05:20.240 --> 0:05:23.960 using business credit cards. So and I'll explain what that means. 0:05:24.080 --> 0:05:27.360 Is like, if you have a fifteen thousand dollars Capital 0:05:27.360 --> 0:05:29.960 One credit card, right or a Chase credit card or 0:05:29.960 --> 0:05:32.840 American Express credit card, you can get that in the 0:05:32.920 --> 0:05:36.160 business name. And let's say, as an entrepreneur, you know 0:05:36.320 --> 0:05:38.360 in the beginning, when you first start your business, you 0:05:38.360 --> 0:05:40.640 have expenses, you have health insurance, you have payroll, you 0:05:40.720 --> 0:05:43.560 have you know, costs, you have computers, whatever case is. 0:05:43.960 --> 0:05:46.359 But if you put that all on a personal credit 0:05:46.360 --> 0:05:48.520 card when you first start your business, you know what happens, 0:05:48.720 --> 0:05:51.240 even if you have nothing negative, you just put fifteen 0:05:51.279 --> 0:05:54.400 twenty thousand dollars on a credit card, your score goes down. Now, 0:05:54.440 --> 0:05:56.160 if you need to use your credit for something else 0:05:56.200 --> 0:05:58.440 down the road, you can't because your credit score just 0:05:58.440 --> 0:06:00.760 went down eighty to one hundred poin point. So now 0:06:01.000 --> 0:06:05.080 you're putting yourself in a disadvantage by not leveraging or 0:06:05.200 --> 0:06:07.919 using business credit. You know, if you put that fifteen 0:06:07.960 --> 0:06:10.960 twenty thousand dollars on your business credit cards that doesn't 0:06:11.000 --> 0:06:13.200 show up on your personal you can rack up thirty 0:06:13.240 --> 0:06:15.360 forty fifty thousand dollars. Your score is never going to 0:06:15.440 --> 0:06:17.800 go down, you know what I mean? So not using 0:06:17.920 --> 0:06:20.800 a virtual address or a business address is the one, 0:06:21.200 --> 0:06:23.520 and then using their personal debt. Now here's the thing. 0:06:24.560 --> 0:06:26.120 What if you can't get a proof for business credit 0:06:26.200 --> 0:06:28.600 cards all right? Then no, you have to use your 0:06:28.600 --> 0:06:31.440 personal credit cards to start and then just know, come 0:06:31.480 --> 0:06:33.400 to the business side of the business credit cards later. 0:06:33.480 --> 0:06:36.280 So don't be afraid. But if you have access to it, 0:06:36.320 --> 0:06:38.920 definitely use the business credit cards versus a personal. 0:06:39.480 --> 0:06:44.000 So another column misconception, correct me if I'm wrong, is 0:06:44.839 --> 0:06:46.120 in order to get business credit, you. 0:06:46.080 --> 0:06:49.560 Don't necessarily have to make money as a business. Right. 0:06:49.640 --> 0:06:52.040 You can get business credit without making a profit as 0:06:52.040 --> 0:06:53.000 a business. 0:06:52.600 --> 0:06:57.320 Correct, Right, and there's a lot of you know, a 0:06:57.320 --> 0:07:00.400 lot of people tiptoe in the gray area of that 0:07:00.800 --> 0:07:03.520 because what they'll do is their business has zero revenue, 0:07:03.520 --> 0:07:05.560 but they'll put that they make one hundred and eighty thousand. 0:07:06.440 --> 0:07:08.600 Don't do that, you know what I mean, you could, 0:07:08.640 --> 0:07:10.680 you could put business. 0:07:11.040 --> 0:07:13.200 Don't don't do that because there's been an uptick in 0:07:13.440 --> 0:07:15.960 unanthropized FBI agents. 0:07:16.240 --> 0:07:18.080 Yeah, don't want to these days. 0:07:18.120 --> 0:07:22.800 So yeah, don't don't do any fraudulent behavior, but explain, 0:07:23.120 --> 0:07:24.440 explain the correct way to do it. 0:07:24.680 --> 0:07:26.840 And the thing is so like, let's say, if you 0:07:26.840 --> 0:07:29.640 know you have a business, right you're starting a business 0:07:29.720 --> 0:07:32.400 and you're applying for your first business credit card, whether 0:07:32.440 --> 0:07:35.600 it's American Express, Chase, doesn't matter what it is, right, 0:07:35.640 --> 0:07:39.640 and it says business revenue. It also acts for your 0:07:39.640 --> 0:07:43.720 personal revenue. So if your personal revenue on W two 0:07:44.000 --> 0:07:47.880 on provable income is eighty thousand, put eighty thousand. Don't 0:07:47.920 --> 0:07:49.520 put one hundred thousand if you know you're not going 0:07:49.600 --> 0:07:51.200 to make an extra twenty thousand dollars that year. To 0:07:51.240 --> 0:07:54.600 back it up. Now, on the business side, right one, 0:07:54.720 --> 0:07:57.640 always concerned with your account and your attorney whenever you 0:07:57.960 --> 0:08:00.400 have any questions when it comes to like income. The 0:08:00.440 --> 0:08:03.240 thing is though, is like let's say if you know 0:08:03.680 --> 0:08:07.680 you are you have projects lined up, you have guaranteed contracts, 0:08:07.720 --> 0:08:11.800 right so, you haven't made any money right now, you 0:08:11.840 --> 0:08:14.280 haven't made any money today. But if you know within 0:08:14.320 --> 0:08:17.080 the next twelve months you have a guaranteed contract coming 0:08:17.120 --> 0:08:19.960 in of like eighty thousand, one hundred thousand, or whatever 0:08:20.000 --> 0:08:22.680 the case is, you know that could be attacked that 0:08:22.720 --> 0:08:24.720 you can use. And like I said, get with your accountant, 0:08:24.720 --> 0:08:28.320 because now that's future receivables. You haven't actually received it yet. 0:08:28.960 --> 0:08:31.560 But if you don't have anything, put zero. And so 0:08:31.680 --> 0:08:33.199 what if you get a proof for a ten thousand 0:08:33.200 --> 0:08:34.520 dollars credit card? At least you got to prove for 0:08:34.559 --> 0:08:37.000 a credit card. The people the reason why people put 0:08:37.000 --> 0:08:39.600 a higher limit is that way they can get I mean, 0:08:39.640 --> 0:08:41.440 the higher amount is so they can get a higher limit. 0:08:41.720 --> 0:08:43.280 Don't do it, you know what I mean, Because then 0:08:43.600 --> 0:08:46.360 it's like gray area. You know you're gonna start tell oh, yeah, 0:08:46.400 --> 0:08:48.480 put eighty thousand, putt ninety and you didn't really make it. 0:08:48.800 --> 0:08:50.520 What happens when they say, hey, man, you know what, 0:08:50.559 --> 0:08:51.840 we want to see a copy of your p and 0:08:51.920 --> 0:08:55.400 L statement, your TAXI terms, which business, which business accounts 0:08:55.400 --> 0:08:58.679 can do, business credit cards can do. What happens when 0:08:58.720 --> 0:09:00.200 you don't even have a P and L statement, which 0:09:00.240 --> 0:09:02.160 is a profit and law statement for your business. What 0:09:02.240 --> 0:09:04.679 happens when you don't even have a bank account or 0:09:04.760 --> 0:09:06.520 need revenue you know what I mean? They can shut 0:09:06.559 --> 0:09:09.720 you down, flag you. So it's like never tiptoe in 0:09:09.760 --> 0:09:11.800 the gray area. If you have to question it, don't 0:09:11.800 --> 0:09:13.880 do it. So if you don't make if you're starting 0:09:13.880 --> 0:09:17.320 your business and it's no revenue but zero, it's the 0:09:17.360 --> 0:09:17.920 best thing to do. 0:09:18.320 --> 0:09:20.680 Like you said, Also, what people fail and realize is 0:09:20.720 --> 0:09:26.079 that most people that start businesses they have a job, 0:09:26.679 --> 0:09:31.040 like very rarely just go cold turkey and start a 0:09:31.080 --> 0:09:34.559 business that makes no revenue, and because then you'll be homeless. Right, 0:09:34.880 --> 0:09:38.319 So it's like they're going to use your personal information anyway. 0:09:38.960 --> 0:09:42.200 So you list your personal information as far as like 0:09:42.559 --> 0:09:45.440 how much you're actually making at your job or how 0:09:45.520 --> 0:09:48.920 much you're making you know, salary or whatever. So like 0:09:48.960 --> 0:09:50.680 you said, if you're making one hundred and twenty thousand 0:09:50.679 --> 0:09:52.920 dollars a year, if you have an eight hundred, I'm 0:09:52.920 --> 0:09:55.079 just using it. If you have an eight hundred credit score. 0:09:55.559 --> 0:09:58.360 Your business might not be that profitable, but they still 0:09:58.480 --> 0:10:01.760 might link. They still might open up business credit for 0:10:01.840 --> 0:10:03.920 you based off of your personal profile. 0:10:04.240 --> 0:10:05.640 Right, have one. 0:10:05.600 --> 0:10:08.880 Hundred thousand dollars saved? Like these are things that you know. 0:10:09.120 --> 0:10:11.880 A ten thousand dollars line of credit is not going 0:10:11.920 --> 0:10:15.559 to pretty much be detrimental five thousand dollars and it 0:10:15.640 --> 0:10:16.319 might not be a lot. 0:10:16.360 --> 0:10:18.360 But like you said, than nothing. 0:10:18.720 --> 0:10:22.080 So it doesn't necessarily mean that just because you have 0:10:22.160 --> 0:10:25.680 no business income, that you have no income. Right, most, 0:10:25.720 --> 0:10:28.520 but a lot of people aren't entrepreneurs, so they always 0:10:28.520 --> 0:10:30.000 look at the most pestimistic thing. 0:10:31.200 --> 0:10:33.640 Earners, what's up? You ever walk into a small business 0:10:33.640 --> 0:10:36.800 and everything just works, Like, the checkout is fast, the 0:10:36.840 --> 0:10:40.719 receipts are digital, tipping is a breeze, and you're out 0:10:40.760 --> 0:10:44.000 the door before the line even builds. 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Hiring Indeed is all. 0:13:19.280 --> 0:13:20.679 You need possible. 0:13:20.720 --> 0:13:23.040 And then like, of course, if you have no business income, 0:13:23.160 --> 0:13:24.440 then how could you list income. 0:13:24.520 --> 0:13:25.040 That's fraud. 0:13:25.320 --> 0:13:28.440 Obviously, if you have no business income, you probably have 0:13:28.559 --> 0:13:29.880 some sort of other income. 0:13:30.360 --> 0:13:32.600 Sometimes life you just have to use common sense, right, 0:13:33.320 --> 0:13:37.560 if you have to comment anymore. So, so just you know, 0:13:37.840 --> 0:13:39.040 just just think about it. 0:13:39.080 --> 0:13:43.240 But like I said, start in a business that can 0:13:43.280 --> 0:13:46.000 be discouraging and doesn't necessarily mean that you're not going 0:13:46.080 --> 0:13:47.760 to be able to get a million dollars probably, but 0:13:48.000 --> 0:13:49.360 you might be able to get a couple of thousand, 0:13:49.400 --> 0:13:51.120 and then you use that and then that helps build 0:13:51.120 --> 0:13:51.960 your profile as well. 0:13:52.400 --> 0:13:52.600 Right. 0:13:52.880 --> 0:13:55.080 And the great thing is once you start making money, 0:13:55.480 --> 0:13:57.800 and if you ever want a credit limit increase, you know, 0:13:57.880 --> 0:14:01.000 for instance, like American Express, right, even if you have 0:14:01.040 --> 0:14:03.680 a charge card with no limit, but you have a 0:14:03.720 --> 0:14:06.720 preset spending limit of let's say fifty thousand dollars, sixty 0:14:06.720 --> 0:14:10.640 thousand dollars. Whenever you request a limit increase with American Express, 0:14:11.160 --> 0:14:13.000 a lot of the times they're going to request a 0:14:13.040 --> 0:14:16.800 bank statement, a profit and law statement. Financials write things 0:14:16.880 --> 0:14:18.840 like that tax return. So let's say if you do 0:14:18.920 --> 0:14:21.760 start off with ten thousand dollars, twenty thousand dollars, just 0:14:21.840 --> 0:14:24.200 keep using it, keep using it, and then every six 0:14:24.280 --> 0:14:26.320 months just asks for limit increase and be like, hey, listen, 0:14:26.360 --> 0:14:28.640 when I started off, I didn't have any revenue, but 0:14:28.680 --> 0:14:31.080 guess what my business blew up. I made three hundred 0:14:31.080 --> 0:14:34.080 thousand dollars in the last six months because of leveraging 0:14:34.120 --> 0:14:36.080 your card. Is there any way you guys can give 0:14:36.120 --> 0:14:38.200 me a limit increase? You can request the amount when 0:14:38.280 --> 0:14:41.160 you when you request and increase your precess spending limit 0:14:41.200 --> 0:14:43.600 with an American Express, you can put the amount and if 0:14:43.600 --> 0:14:47.400 your financials justify that limit, they'll give it to you. 0:14:47.400 --> 0:14:49.280 You know what I mean. That's the best thing is 0:14:49.280 --> 0:14:51.680 you don't got to lie in an application because it's 0:14:51.720 --> 0:14:53.960 better to start it off right and then work your 0:14:53.960 --> 0:14:56.280 way up. Because what if I give you right now, 0:14:56.440 --> 0:14:59.360 if American Express gives you a three hundred thousand dollars 0:14:59.400 --> 0:15:03.000 credit card, you have no revenue, then you max it out, 0:15:03.120 --> 0:15:04.920 then what happens how you're going to pay it back? 0:15:05.240 --> 0:15:07.320 That's the why I want to go to those because 0:15:07.440 --> 0:15:08.120 that's the other part. 0:15:08.200 --> 0:15:10.960 Right, you might get that credit increase right you max 0:15:11.040 --> 0:15:13.760 it out, but then there becomes the negligence and so 0:15:13.840 --> 0:15:16.400 now when the payments are due, you can't payment pay 0:15:16.400 --> 0:15:16.720 it right. 0:15:16.760 --> 0:15:18.560 And so when you do that on the personal side, 0:15:18.720 --> 0:15:20.960 your credit score goes down. But then the business side 0:15:21.240 --> 0:15:23.160 correct me if I'm wrong. But your Dune's number gets 0:15:23.200 --> 0:15:25.560 to effected, right, do you explain with that process? 0:15:25.840 --> 0:15:32.400 Yeah, So typically the majority of your credit cards will 0:15:32.520 --> 0:15:36.520 actually report to Experience Business, and then your other net 0:15:36.560 --> 0:15:40.040 thirties and vehicles will typically report to done in Bradstreet, right, 0:15:40.080 --> 0:15:42.680 So good and bad thing is The bad thing is 0:15:42.720 --> 0:15:48.120 that typically American Express or like Visa Master cards won't 0:15:48.160 --> 0:15:50.480 report to dune in Bradstreet. I'm not saying all of them, 0:15:50.720 --> 0:15:53.000 but typically a lot of them won't, which is good. 0:15:53.000 --> 0:15:55.800 And that's your dun's number, and that's your paid explore. Right. 0:15:55.840 --> 0:15:58.800 So you know you have Equifax Experience TransUnion in the 0:15:58.800 --> 0:16:02.240 personal side. On the business side, you have Equifax Business, 0:16:02.360 --> 0:16:05.200 Experience Business, and then you have done in Brasstreet. So 0:16:05.480 --> 0:16:07.600 that's why we like nab dot com because it does 0:16:07.720 --> 0:16:11.680 track everything, and Experience Business is typically going to have 0:16:11.840 --> 0:16:14.880 like your credit cards, right, they don't report to all 0:16:14.920 --> 0:16:18.600 three like how your regular American Express does. On your 0:16:18.600 --> 0:16:21.600 personal side. You know, it does report to different bureaus 0:16:22.000 --> 0:16:24.800 and they all have different factors. Right, Your Experience Business 0:16:24.800 --> 0:16:27.680 only goes up to one hundred points, and so does 0:16:27.680 --> 0:16:30.480 your Paidex score. It only goes up to one hundred points. 0:16:30.640 --> 0:16:33.480 And typically you'll have anywhere between eighty two one hundred, 0:16:33.880 --> 0:16:36.000 as long as you pay your bills on time, you know. 0:16:36.080 --> 0:16:38.200 So if you pay your bills on time, typically it's 0:16:38.240 --> 0:16:40.480 net thirty. As long as you pay them between one 0:16:40.520 --> 0:16:44.680 in thirty days, you'll have typically an eighty paid X score, 0:16:45.040 --> 0:16:47.240 you know. And the great thing is is that a 0:16:47.280 --> 0:16:51.040 lot of the times the balances won't always affect your 0:16:51.080 --> 0:16:54.520 PAIDEX or your Experience business score, you know. So that's 0:16:54.520 --> 0:16:55.920 a great thing. The thing is, though, if you have 0:16:56.120 --> 0:16:58.640 everything maxed out, then it's going to hurt you. But 0:16:58.640 --> 0:17:01.080 if you have like one or two account it's not 0:17:01.080 --> 0:17:02.800 really going to hurt you as bad as let's say, 0:17:02.840 --> 0:17:04.960 you know, let's say if you have a target credit 0:17:04.960 --> 0:17:07.600 card and that's the only credit card max out on 0:17:07.600 --> 0:17:09.880 your credit report, your score is going to go down, 0:17:10.160 --> 0:17:13.320 even though your overall credit is okay. That one credit 0:17:13.400 --> 0:17:15.560 cards maxed out, it's gonna hurt you. The great thing 0:17:15.600 --> 0:17:17.800 is in the business side, it doesn't affect you like 0:17:17.840 --> 0:17:18.400 the same way. 0:17:19.359 --> 0:17:22.320 What are the two or three credit cards entrepreneurs should 0:17:22.359 --> 0:17:24.879 apply for that gives them a good probability of getting 0:17:24.920 --> 0:17:28.120 a line of credit without having a you know, having 0:17:28.200 --> 0:17:29.560 a ton of revenue in their businesses. 0:17:29.640 --> 0:17:31.760 Yet, so when you say line of credit, do you 0:17:31.840 --> 0:17:34.840 mean like a credit card like American Cars credit card. Okay, 0:17:35.160 --> 0:17:40.199 So even though this credit card reports to the personal side, 0:17:40.640 --> 0:17:44.240 the reason why I like it is because it reports 0:17:44.240 --> 0:17:47.959 to personal and business and if you have blemish credit, 0:17:48.000 --> 0:17:50.320 they still approve you. Which is the Capital One's Spark card. 0:17:51.119 --> 0:17:53.399 The reason why I like the Capital One's Spark is 0:17:53.440 --> 0:17:57.840 because it's for beginners that have new credit, meaning you 0:17:57.840 --> 0:17:59.479 can get approved of like a five eighty six ONS 0:17:59.520 --> 0:18:02.199 credit score or even with like charge alls and collections. 0:18:02.840 --> 0:18:06.800 And it also reports to your business credit report as well, 0:18:07.080 --> 0:18:08.840 you know. So the reason why I like that one 0:18:08.920 --> 0:18:11.320 is even like I said, even though it reports to both, 0:18:11.359 --> 0:18:14.479 which I would never really suggest it. It's just because 0:18:14.480 --> 0:18:16.640 it's a great starter card to get, and that's why 0:18:16.680 --> 0:18:18.280 you brought it up, Like which one are they gonna 0:18:18.359 --> 0:18:20.119 like to give it to you? Let's say, even if 0:18:20.160 --> 0:18:22.560 you get a thousand, two thousand dollars, four thousand dollars, 0:18:22.520 --> 0:18:24.159 whatever the case is, it's more than you have before, 0:18:24.520 --> 0:18:27.040 just be mindful that if you max it out, it 0:18:27.119 --> 0:18:30.560 is going to report to your your personal credit. The 0:18:30.600 --> 0:18:34.000 second one I would say for starters is gonna be 0:18:34.080 --> 0:18:37.240 your American Express, right. I love American Express typically because 0:18:37.320 --> 0:18:41.240 even if you have a charge off or collection, American 0:18:41.240 --> 0:18:43.800 Express will still approve you for a business credit card. 0:18:43.920 --> 0:18:46.800 You know, I have zero personal cards. You know, I 0:18:46.800 --> 0:18:50.639 filed bankruptcy in twenty fourteen, I owed money. I included 0:18:50.680 --> 0:18:53.080 them in my bankruptcy a couple of years and a 0:18:53.119 --> 0:18:55.479