We have all heard of authorized user accounts. They have been used for rapid scoring improvement in the mortgage industry for decades. If you are looking for rapid credit score improvement, think about becoming an authorized user on a family member’s (or others) credit card. In essence, you are piggybacking off the primary account holder’s responsible use. The main benefit of becoming an authorized user on a credit card is the fact that you can benefit from another person’s good credit and good payment history to enhance your own credit. And you get this benefit without applying for a credit card of your own which would cause an inquiry and negatively adjust your total credit file age. Adding other people’s seasoned accounts adds positively to your credit file age and greatly lowers your credit utilization ratio. The authorized user is given a card in their name and can make purchases, but they are not liable for the debt incurred. The primary cardholder is ultimately responsible for making the payments. This can be a great way for the authorized user to build their own credit history. If the person granting another person to be an authorized user on their account has doubts or concerns, they can have the authorized user destroy the credit card issued or don’t have one issued to them at all. Have the secondary card sent to the primary account holder’s address. The point is to help another person benefit from the primary account holders great credit account. When you find someone willing to make you an authorized user on their account look for these four things. One, the higher the credit line the better. A $10,000+ credit line is preferred. Two, ensure the credit card account has been open a long-time. 5+ years is good but 10+ years is great. Don’t be added to an account that has been opened for less than three years. Three, make sure the credit utilization on the account is less than 10% or hopefully zero percent for best results. Four, verify they have no late payments on this account.

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There are basically three major types of lenders. Collateral-based, revenue-based, and credit-based. Let’s review their differences and some lending criteria for each. This is meant to be a cursory review not an in-depth overview. Collateral-Based Also known as asset-based lending. This refers to valuable assets owned by the borrower that are used as security for the loan. Common examples include real estate (like mortgage notes), equipment, inventory, and accounts receivable. Secured loans offer the best rates as the risk is obviously lower than unsecured loans. The collateral itself has intrinsic value. Some little-known uncommon examples of asset-based lending are appraised artwork, appraised coins & card collections, and exotic cars. Lenders will provide a portion (they determine risk) of the value of the asset as a secured loan. Meaning if you have an exotic car worth $300,000, you will not be offered a $300,000 loan. You will receive a portion of its value in the form of a loan determined by the lender. For the uncommon examples the collateral is often held in a secured facility until the loan has been repaid fully. Revenue-Based Revenue-based lenders provide funding to companies in exchange for a percentage of their future revenue, rather than traditional fixed payments or equity. This means the repayment amount (usually daily or weekly) fluctuates with the borrower's sales, making it a flexible option for businesses, especially those with fluctuating revenue streams. Today, many revenue lenders offer fixed based amortized loans as well. Generally speaking, you don’t need good personal credit (500+). Your credit lines are based solely on revenue. Less than $15,000 per month revenue generates offers of 25%-75% of your average monthly revenue as a short-term loan (4-months to 12-months). $15,000 per month revenue or more generates offers of 100%-200% of your average monthly revenue as a short-term loan (4-months to 12-months). Some lenders require as little as 4-months in business. Revenue-based loans use factor rates (1.18-1.60), not interest rates.

I wanted to know using my personal address to open a business checking account and credit cards only is ideal in the current funding landscape. My LLC formation used a virtual address to safeguard my home address being public. I ask because Banks are starting to flag and even deny applications because of the virtual address. I guess what I'm asking is if using my personal address for Business Checking Accounts and Credit Cards only would be the ideal scenario? Thanks and have a great day. @Evan Rugen

Many people apply for funding everywhere but never build depth with one bank. Lenders often favor businesses that already have an established relationship with them. When your banking profile is structured correctly, approvals tend to move smoother and faster. What stronger banking relationships can lead to 👇 ✅ Faster underwriting and approval timelines ✅ Increased trust from lenders reviewing your profile ✅ Access to larger and more consistent funding opportunities ➡️ We show how to build strong bank relationships inside onboarding. 🔗 https://skool.letsgetfunded.com/fskool-group-onboarding-book ➡️ Ready to level up? 🔗 LGF Pro – skool.com/lgf 🔗 Inner Circle – skool.com/100k