Tier 6 Accounts Explained
About This Lesson
In this lesson, we’re going to cover the following:
- Tier 6: Revolving credit II ($10k to $20k)
- Tier 6 goals
Full Video Transcript
Hello, and welcome to tier six accounts explained. So you already know the drill. We’ve done this five other times. Someone’s gonna explain the tier six accounts and what you should expect in this particular section. So, our goal here is beginning accounts between $10K and $20K at revolving terms and our goals. So at minimum, we need to have at least 10 trade lines, minimum minimum, you’ll probably have more, but you want a minimum, have 10 trade lines reporting the Dun and Bradstreet, and then at least six of those trade lines reporting to Experian and Equifax, and would have made at least three orders on all of these vendors and paid on time. Okay. And secured at least 7,000 in lines of credit. You’ll probably have way more than this, but these are the minimum requirements before going into tier six. So we want to secure at least 7,000 in one vendor, ideally, or a combination of vendors.
Then, we want to also understand that now, since we’re in the revolving account territory, this is really what we want to be able to position ourselves to get those unsecured revolving lines, because this is like what we can use, like cash to grow our business. Now, the goals for tier six is you want to increase whatever limits you already have. And then when you’re applying for cash credit, you want to make sure you’re doing so with business cards. So typically most credit cards, business and personal almost always require social security number, but the best thing to do with sending the application that your social security number is only being supplied for verification purposes, I mean purposes, and that you don’t want your personal credit check and, or to be a personal guarantee, if you don’t want to be a personal guarantee, but again, if you need to get it, I would highly recommend doing it just because you can get approved. I’d rather you get approved, then remove yourself as a personal guarantee.
So typically corporate cards are designed to establish business, are designed for established businesses with millions of dollars of revenue, which is probably not where you are. So that’s why in some scenarios, these issuers want to make sure that you can either a.) Substantiate your revenue or b.) Show your financials or c.) personal guarantee. Okay. And so the tier six goal is to get up to at least 12 trade lines, reporting on Dun and Bradstreet, get those 8 tradelines reporting to Experian and Equifax. We’re going to make three orders with those particular vendors that we’re going to get. And then our goal was to secure at least a $10,000 or more trade line. Okay. So the goal of this section is to secure some tier six accounts and get your business credit profile ready for the next tier where banks and lenders are going to be really, really stringent, especially when it comes to the last tier of credit. So really all we’re doing at this point is positioning ourselves to get a higher limit in our company’s name. If we have to PG not a big deal, but getting those limits, add better terms, going through all of our other accounts, making sure that we’re maximizing all of them, ones that we did in tier four, tier five, tier three, tier one, and tier two, you’re probably going to be using more of your tier four and your tier five, and even your tier three accounts on a regular basis, which is awesome, but you don’t have to continue, but here in tier six, these are the minimum goals and requirements. So that way we can position ourselves to get tier seven cash credit.