One of the reasons I LOVE Business credit is because just like my students, I used my personal credit cards for BUSINESS expenses and ended up with maxed out scores.
My scores dropped from 757 to 585 because my utilization was 100%.
Assuming you have no derogatory marks (Or are willing to repair your credit) but have maxed out credit cards your Personal FICO scores are likely being lowered by this and you can benefit GREATLY by transferring your personal credit card debt to 0% interest business credit that does not show on your personal reports.
Now you are probably wondering... How would you get approved for those in the first place?
There are two great options we assist students with: Bridge Loans and Personal Loans.
If you acquire a personal loan and pay off all your Credit Cards your utilization will drop to 0% and your scores will skyrocket upwards of 200 points. This is because Revolving debt like Credit Cards only apply to Utilization, Loans do not.
A few years back, I took out a $12k Personal Loan from my bank Navy federal and paid all $12k of my Credit Card debt, dropping my utilization from 100% to 0% and this pumped my score from 585 back to 750 the very next month.
This allowed me to get my first round of funding and change my life!
Since then I've gone on to help over 20 people consolidate their debt as well and acquire funding!
Or you can get a Bridge Loan, we have a provider for this. The bridge loan will pay down all your credit cards to 30% utilization, so your scores increase to 700+ and you can than qualify for business funding. You do a round of business funding and then pay back the bridge loan company plus interest.
For EVERY $10K in Credit Card Debt you pay roughly $1,200 a year in interest alone.
Transferring this debt to 0% business funding will increase your scores and save you money!
Heres an example of our student Henry who was able to successfully pull this off!