Page 173 - Winning The Credit Game Bundle (CK Patrick)

CHAPTER 6
BUILDING TIER 2 CREDIT

Now that you’ve taken some measures to begin to build your
credit score, you will become eligible for more advanced trade
accounts. It may take a few months, but once your business
credit score begins to climb, you may secure better rewards,
better interest rates, and higher credit limits on business trade-
line accounts from major retailers.
What I call “Tier 2” credit refers to these more advanced
tradelines, which may require some credit history to obtain, but
which are largely similar to Tier 1 tradelines. Their higher limits
and more complex and flexible terms will be good practice for
the larger and more complex forms of financing we’ll cover in
Tiers 3 and 4.
Tier 2 credit tradelines should not require a personal guar-
antee to back up your line of credit, but they may offer the
option of using one. In other words, they may ask whether you,
as the business owner, would like to stake your personal credit
score or some of your belongings on your promise to pay your
invoices.
Giving a personal guarantee is not necessarily bad if you are
100% confident that you will buy no more from this creditor than
you can afford to pay back. When using Tier 2 credit primarily to
build business credit in order to work toward eventually

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