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Primary Account vs Authorized Users

How do you get approved for a high-spending limit business credit card?

I'm going to reveal a secret to you: build a good relationship with the bank.

An indicator that banks can trust you is the fact that you have had an account with them for a long time. Prove to the bank they can trust you with a high spending limit credit card.

If you're someone who is newer to credit, this can be a bit challenging. Thankfully, there is a way you can speed up time and take the "age" of your credit line from three months to 10 years.

But first, let me break down some terms that will help me make my point.

Owning your credit - Primary Account

When you apply for a credit card, you’re signing up to be the primary owner of that credit card and its debt.

This just means you will be the person who will use the card and pay off any and all debt on it.

There are a bunch of great benefits to having a primary account. The more primary accounts you have, the better your credit score will be. Also, the more primary accounts you have the more you have access to funding.

That second part is important when it comes to business credit and trying to grow or scale your business without getting trapped in high-interest debt.

You could apply for a bunch of different credit cards, but that will hurt your credit score. The best way around this is to become an authorized user on someone else's account.

Strengthening your credit - Authorized User

Becoming an authorized user starts with a great deal of trust because you are being added to a primary user's line of credit.

When you become an authorized user, you’re piggybacking on a primary user's line of credit which will make your credit. This will make your file more attractive to the bank, especially if they've had that line of credit open for 10 years or more.

This is what I mean when I say you can increase the age of your credit in just a few short days.

Becoming an authorized user can also help you if you don't have the best payment history or a long record of payment history.

When you are looking to become an authorized user on someone's account, be sure the person you're joining has a good credit history.

When you take on their credit history, you take all their history.

This means if they have any missed payments, maxed-out utilizations, or low spending limits, that will reflect on your credit file.

Another important thing to remember is that some banks do not report an authorized user and some do. Keep that in mind when you're going to look for an account to become an authorized user. My favorites to use are Chase, Bank of America and American Express.

When you find the right account, they will primary account holder will need your full name, date of birth, and social security number. This is why I encourage people to become authorized user on a family member's account.

A community mindset

If you're interested in improving your credit score, join my Credit Stacking mentorship.

You'll learn the skills needed for financial freedom and scale your business without high-interest rates and how to get approved for $20-$50K in business credit.


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