Post a new topic
    7 Replies Latest reply on Nov 24, 2008 10:43 AM by Moldman

    My new company needs a get out of credit debt plan.

    Moldman Newbie
      I have a new small business I started last year doing indoor environmental air and mold testing. I purchased start up supplies and equipment on a business account credit card. I have been doing a fair amount of business and have some new ideas and plans but all of my revenue is going right to the interest and payments on the card. I was thinking that if i could secure a loan with a lower interest rate i could pay the dept back faster and then be able to put the profits back into the new plans. Anyone know of a good loan product out there right now?
        • Re: My new company needs a get out of credit debt plan.
          DomainDiva Ranger
          American Express and Citibank are offering zero percent for 1 year on balance transfers on new accounts IF you have the credit score. I transferred all of my Best Buy debt from my personal score to the business side with Citibank. Be sure you understand the interest if at the end of 12 months you have not paid back the amount you owe.

          Zero percent is the only way to go.
          1 of 1 people found this helpful
          • Re: My new company needs a get out of credit debt plan.
            intechspecial Ranger
            I would have to agree that zero percent is the way to go.

            The great thing about the current economy is that if you have great credit, you can shop around and find some unbelievable deals.

            All banks need your business now more then ever, and will fight hard to prevent you from walking away.
            1 of 1 people found this helpful
            • Re: My new company needs a get out of credit debt plan.
              Fortis Wayfarer
              PLEASE do not transfer balances. That is not a solution. Lenders see when debt gets tossed around and lowers your credit. Email me a bit more detail about the debts and your business.

              Thanks

              Collin
              Fortis Capital
              cobringer@gofortis.com
                • Re: My new company needs a get out of credit debt plan.
                  NoBullFunding Scout
                  Depending on the situation, refinancing to a card with lower rates could be an excellent way to go. In an ideal world you could got find a term loan with a bank, but alas, small business owners usually arent operating in ideal conditions.

                  Fortis, which specific credit scoring factor are you referring to that would lower someones personal credit if they transferred balances? Number of inquiries in the past 6 months?

                  One could argue that if a person transferred a balance onto a new account, it might help their credit since it will reduce the % of revolving credit available, not to mention how much it would help if the card being paid off was past due. To my knowledge, the act of transferring a balance in of itself does not hurt a credit score. Having numerous new accounts could hurt the score, but if you do it once or twice and its reducing the rate from 20% to 10% on a large balance, I think the net effect on your finances will be positive.
                  1 of 1 people found this helpful
                    • Re: My new company needs a get out of credit debt plan.
                      Fortis Wayfarer
                      Most people who are transferring debt are opening new credit card accounts. A major portion of the credit scoring model is length of time accounts have been open. When new cards are opened the model doesnt have a way of judging the ability to handle new debt therefore it is seen as a negative impact.

                      People also dont realize lots of times when they transfer balances to new cards with low rates that this new card has an actual higher minimum payment verse some higher interest credit cards. This can hurt a person looking for other forms of financing because it may raise your debt to income ratio.
                    • Re: My new company needs a get out of credit debt plan.
                      Moldman Newbie
                      I emailed you more information but have not received your response.