Credit card stacking is the strategy of applying for multiple credit cards in a specific order to access a larger unsecured line of credit than individual small business credit cards can offer. Here we’ll explain how it works, the costs and benefits, and when it might be a good option for small business owners.
How It Works
1. The stacking company reviews your personal credit scores, income and other relevant qualifications to identify cards for which you are likely to qualify. Your personal credit scores typically need to be at least 680 or above to get qualify for most credit cards, and it’s worth noting that approval is not guaranteed.
2. Credit card stackers will provide guidance or assistance as you apply for multiple credit cards; often 5 -15 or more.
3. They will often target business credit cards over personal credit cards because most business credit cards don’t show up on your personal credit reports as long as you make the payments on time. This can protect your personal credit scores from high utilization (a high balance compared to the credit limit.)
4. For financing purposes, they may also focus on cards with the lowest APR including 0% intro APR credit cards for 12 months.
5. Once you are approved and the credit cards are issued, you can use them as the business line of credit. If you need to get cash out of the credit line, they will also teach you how to do that without incurring a cash advance fees.
Benefits of Credit Card Stacking
The stacker’s pitch is that it’s hard for entrepreneurs to find and secure the best credit cards, but they are experts in business and personal credit cards.
Minimize Personal Credit Impact
By strategically submitting applications, credit card stacking firms may be able to help avoid immediate negative impact to personal credit scores. For example, they may try to help you apply for multiple cards at one time so that the hard inquiries on your credit files don’t impact your personal credit history until after you approved. Their experience may help you decrease the chances of getting turned down because the process is tailored to your specific needs and qualifications.
Credit Card Stacking For Increased Rewards
Some business owners use multiple credit cards to get credit card welcome bonuses. Businesses with significant spending may be able to get sign up bonuses in the form of cash back and travel miles or points. These rewards can be lucrative, but interest costs can be significant if you carry a balance.
Some small business owners find multiple credit cards helpful in their entrepreneurial endeavors. For example, they may use different business credit cards for different types of purchases, or for certain projects to better track spending.
When you have just one credit card or line of credit, there’s a risk that the lender could close it for any number of reasons. When you have multiple credit cards, you have more flexibility because you diversify your sources of financing.
How To Apply
The Rest Depends On Each Bank
Find A Business Credit Card That’s Right For You
Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® credit card
Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card
The Blue Business® Plus Credit Card from American Express1
The American Express Blue Business Cash™ Card
American Express® Business Gold Card
The Business Platinum Card® from American Express
Bank of America® Platinum Plus® Mastercard® Business card
Bank of America® Business Advantage Travel Rewards World Mastercard® credit card
GM Business Card™
CitiBusiness® / AAdvantage® Platinum Select® Mastercard®
Alaska Airlines Visa® Business card
Capital One Spark Cash Select for Excellent Credit
Capital One Spark Miles for Business
Capital One Spark Classic for Business
Costco Anywhere Visa® Business Card by Citi
Capital on Tap Business Credit Card
Secured Chime® Credit Builder Visa® Credit Card (Consumer Credit Card)
Coast Visa® Fleet Card
BILL Divvy Corporate Card