Page 155 - Winning The Credit Game Bundle (CK Patrick)

BEFORE YOU APPLY

Before you apply for trade/vendor credit, there are a few things
you want to know to ensure that you get the desired result.
One thing to know is that it is very, very important that you
register for these trade accounts using your business’ registered
name, EIN, and contact information. This is because the informa-
tion you use to register your trade accounts will be the informa-
tion that is also used to verify your business and report to the
credit bureaus. For this reason, if you register under a personal
name or if there is an error in the business information you
submit, your activity on these accounts may not show up on
your business’s credit report. Any inconsistencies in your busi-
ness information can also cause you to be denied financing, so
make sure everything matches up across the board.
It’s also useful to know that only $50 or more charges are
reported to credit bureaus in most cases. That means you will
want to spend at least that much on each of your tradelines to
initially activate them and use them every few months if you
want to build a strong, consistent reporting history.
You will also want to look for lenders with favorable terms.
So what does a favorable line of trade credit look like?

ATTRIBUTES OF A GOOD LENDER

When opening a tradeline, you should be given information
about its net/credit terms. This refers to the term you have to
pay your tradeline lender. If you see the term “net 30,” for exam-
ple, that means that you have thirty days to make the agreed-
upon payment to your tradeline lender. “Net 60” can mean you
have 60 days, and “net 90” means you have 90 days.
Some businesses prefer longer net terms to give them more
time to pay off their balances, but it’s important to keep in mind
that payments are only reported to the credit bureaus as often as
they’re made. This means that an account with Net 30 terms will
report your successful payments to the credit bureaus faster and

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