I wanted to see if anyone could give me some advice on getting a business LOC. Are there any tricks to this? I got denied for a 100k line of credit at Bank of Arizona.
I understand that these factors obviously affect the underwriters decision----
credit score (mine is 660)
debt to income ratio (I have a 200k mortgage,but only making 20 k a year and most income does not show on W-2 as they are military benefits)
I split mortgage with a buddy and have another student renting out third room
Well, I can make a suggestion to improve your credit score, but how much it helps you obtain a business LOC I dont know…
I assume that you meant your credit card balance is $5k with a $6,500 limit. Anytime you have an unsecured revolving line of credit with a balance over 50% of the limit, it materially impacts your score. If you could knoock that down to $2k or so, you should see your score improve. There is a great manual I found somewhere that talks about the major components of a FICO score and % utilization is one of them.
First you need to be in business not as a dba. So if your atleast an llc you start small and petty. I think my first LOC was with Office Depot for $100 and I used it for about 2 months and bought all I could on it and paid it off at billing. I’m thinkin it was 3 months after my Inc was filed I had the deadly H.D. business card and it took off from there.
Dennis