In a recent YouTube video, Houston shares his strategy on how to obtain a $50,000 business credit card from Capital One. He highlights the importance of building a relationship with the bank and leveraging your personal and business accounts effectively. By following his step-by-step plan, individuals with challenging credit can increase their chances of securing substantial business funding.
Building a Relationship:
To initiate the process, Houston advises opening a personal account with Capital One and obtaining a secured credit card if your credit is less than ideal. This establishes two relationships with the bank. Simultaneously, he emphasizes the need to set up a business entity and open a business bank account.
Using Home Depot Card:
Houston suggests applying for a Home Depot card, both on the personal and business side. By using the business card, you can acquire prepaid Visa or Mastercard gift cards in denominations of $25, $50, or $100. Once obtained, these cards can be cashed out, and the money can be deposited into your personal Capital One account. Subsequently, transfer the funds from your personal account to your business account.
Leveraging Income and Business Activity:
If you have a job, Houston recommends diverting a portion of your income into your Capital One business account. This further strengthens your relationship with the bank. Additionally, he stresses the significance of consistent activity in your business account. Regular deposits, starting from $25 and increasing over time, demonstrate financial responsibility and help improve your business credit rating.
Understanding Factors for Approval:
Houston highlights two crucial factors that Capital One considers when granting business credit cards: income and debt-to-income ratio. The higher your income and the better your debt-to-income ratio, the more likely you are to qualify for larger credit limits. It’s essential to focus on increasing your income and managing your debts effectively to enhance your chances of approval.
Patience and Relationship-Building:
Patience is key in this process. After approximately six to nine months of consistent activity and responsible credit card usage, your creditworthiness should improve. At this point, you might become eligible for a line of credit or a working capital loan. Capital One may consider extending credit even if your business hasn’t been operational for two years, given your proven track record.
Having a Plan and Strategy:
Houston emphasizes the importance of having a clear plan and strategy for utilizing the funds obtained. Rather than focusing solely on obtaining credit, it’s crucial to understand how the funds can be effectively leveraged to generate income and ensure timely repayment. Developing business skills, such as sales and customer acquisition, will contribute to long-term success.
Obtaining a $50,000 business credit card from Capital One with challenging credit is achievable through a well-structured approach. By building a relationship with the bank, leveraging personal and business accounts, and demonstrating financial responsibility, individuals can increase their chances of securing substantial business funding. It’s crucial to have a solid plan and strategy to maximize the benefits of the credit obtained and ensure successful repayment.