Credit Where Credit Is Due

Hello! David J here again bringing you more of the steps on my journey toward financial independence.

We haven't talked about corporate credit for a while. I've been still working on that and now my LLC has been approved for its first credit card!

I did what we talked about earlier, including getting some Net-30 lines and getting a DUNS number. That's right - you can find the LLC on Dun & Bradstreet.

Now, marketing remains a major source of new revenue for the credit card companies, even in THIS economy, and even in the commercial market - corporate credit.

So, lo and behold, the LLC gets a solicitation for a cash-back credit card! I went to the URL listed in the mailing piece (yes, it came snail-mail!), filled out the application on-line, and - long story short - I got the reply that the application was approved!

This is so new that I don't even have the card in my hands yet. So, I can't even tell you what the credit limit is or any other details.

Obviously, I read and agreed to the Terms and Conditions on-line. So, I know about interest rates, billing practices and such.

...and yes, it is personally guaranteed by me. Now, my credit score remains good thru all my tribulations, but my credit utilization is VERY high. Remember from earlier posts I mentioned that when the credit card servicers started cutting credit lines back in early 2009, I lost some $50,000 in open credit including losing one $14,000 line entirely when the servicer lost their funding.

So, I can't get new credit lines in my own name, but my LLC just did!

Even if you can't complete the whole credit building program for your business entity as we discussed back in December of 2010 - I didn't, you can still build corporate credit for your entity. The key is going to be to build some kind of a good credit reputation for your entity, and ensure that D&B makes that information available to the world.

We'll talk again soon!

Take care - be well!

Much Success!