Page 109 - Winning The Credit Game Bundle (CK Patrick)
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majority  of  these  accounts,  a  purchase  anywhere  between  $50-
                $100 must be made for it to report to the bureaus.
                   Typically, payments are collected and reported to the credit
                bureaus every 30 days, which allows you to build up multiple
                positive  payment  reports  from  several  vendors  in  just  one
                month. But because net 30 accounts give you a full month to pay,
                the chances of you forgetting or being unable to pay are lower
                than if you were trying to pay off your accounts every 10 or 15
                days. Remember, what you don’t want to do is take out a line of
                credit and then forget to pay it back by the deadline!
                   Net  30  accounts  are  usually  offered  by  vendors  who  sell
                specific  business  supplies.  The  highly  specific  nature  of  these
                credit  lines  makes  them  both  easy  to  obtain  and  low  risk.  The
                vendor  or  supplier  knows  that  you  can  only  use  their  line  of
                credit to buy from them, so you aren’t going to go out and use
                the credit line they’ve given you on something else and subse-
                quently fail to pay it back.
                   If  you  successfully  use  their  supplies  to  make  a  profit  and
                pay them back, you’re extremely likely to continue buying from
                them  in  the  future,  so  they  will  have  gained  a  long-term
                customer. If you fail to pay them back, they can stop supplying
                you or repossess their equipment and take a relatively small loss.
                   This  means  that  offering  these  trade  credit  lines  is  a  good
                investment  for  the  vendors  and  suppliers  who  offer  them,  so
                they are more eager to offer them to new businesses with little
                credit history than someone might be to offer a credit line that is
                higher-risk and less profitable to the lender like a credit card or a
                loan.


                TIER 2: ADVANCED TRADE CREDIT


                More advanced levels of trade or vendor credit are best for busi-
                nesses that have spent a couple of months building up a solid
                history of successfully paying off their tier 1 net accounts. These
                advanced credit lines may allow you to borrow larger amounts
                and take more time to pay them back than with basic trade credit

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