Tier 4 Accounts Explained

Hello, and welcome to this module, tier four accounts explained. So we’re just going to continue the momentum that we have built, and I’m just excited because you can see how you’re getting your corporate credit file built up account by account, tier by tier. So you can get that funding that your business absolutely deserves. So here’s what we’re going to cover. Number one, tier four, better known as fleet credit, tier four goals, and then the two major requirements of traditional business credit cards that you need to be aware of. And I’ve already kind of disclosed earlier in the program, but I’m just going to go over it one more time. So, number one, what we’re going to do is start applying for the tier four net term accounts. Once all of these, once all of these requirements are met. So essentially don’t do tier four, unless you have at least seven, seven minimum, I would say seven to 12 trade lines reporting to Dun and Bradstreet, and of those additional accounts they’re reporting to at least Equifax and Experian as well.

And you’ve made at least three orders per new vendor with the previous tier three accounts. And if that’s the case, you should move forward. If that’s not the case you would have. Also with that tier three secured at least $2,000 and tradelines. Okay? So these are the things that you should have already accomplished in a tier three. So essentially what I’m saying is, are we viewing what you should have accomplished in tier three. And this should be reporting on your Dun & Bradstreet credit profile. Okay? Now those seven additional trade lines should be reporting to Dun & Bradstreet with those three tradelines, three of the separate reporting to the extra Experian and Equifax. Okay, so what’s going to happen is, tier four starts to bridge the gap from the net 30 terms, which you have to pay in full to the revolving credit, which have rolling payments.

So now it’s really, really, really pivotal that we started to diversify the types of credit because we started to do it in our previous module, 60 to 90 days ago when we were doing a tier three, but now what we want to do was start obtaining business credit cards that can be used at any other place, not just with the vendors. So this is going to be that bridging of the gap. So when we look at our tier four goals, specifically, our goal was to get eight trade lines ,for tier four reporting to Dun & Bradstreet, and then four of those eight that are going to be reporting to Dun and Bradstreet with Experian and Equifax. We also want to make sure we make three orders with the new trade lines per vendor, and that’s all we need to do. And then our goal is to secure at least a 4,000 plus tradeline.

And this is how we want to be looking at our tier four goals going into this. All right, we’re not this isn’t a marathon. This isn’t a sprint. So you can really do two applications per week for the next month. And that will be enough to get your tier trade tier one, tier four trade lines. Then with those applications, we’re going to be doing at least three purchases per vendor for the next three months. Okay. Just like we did before now to transition from this and also talk about the two major requirements for traditional business cards. A traditional business card is like a Visa, MasterCard or American express that can be used as cash. So most companies there, it just is what it is. They’re going to require a, your, your social security number when applying which may or may not affect your personal credit score.

So if your credit isn’t that a bit on the personal side, where you need to improve, where you need to improve it, then I highly recommend you go watch my training on the 700 credit score academy, where I’m breaking down exactly how to, how to improve your personal credit. Now, even though you’re going to be getting these business cards, the business is going to be, it’s not going to report. It’s not going to report on your personal credit. I, all my Chase cards, my Bank of America cards, my American Express cards, even my US bank card, I had to use a social security number. And they did look at my social security, my personal credit report, but it does not show up on my personal credit report from a utilization perspective. So what you’ll be doing is apply with your EIN. But the other thing is applying only with your EIN would not only make it possible or impossible with the card issuer to run your personal credit. But also, was going to exclude them from requiring you to provide a personal guarantee for any of your business credit cards. So what I’m saying is, is they’re going to require it, but this is a really sneaky way around it, but I still recommend you just do it just to keep it simple, because they’re going to know your EIN number, because they’re going to request your EIN number separately from your personal social security number, right. Now, if you have an individual taxpayer number which is very similar to an EIN number, you can use that, but I just recommend just use your social security number just to keep it simple, because this is going to be cash credit.

The other thing is most credit card companies are not going to report payments to the business credit bureaus, which is another sad thing. Now, I don’t know why, but none of my cards report to the business credit bureaus, right. But I can use these cards as cash. So, that’s one thing you need to understand going into the business card. So up to this point, all of the vendors that we’ve been building up report to the bureaus, but the majority of business credit cards are not, not my Chase card reports to Experian, but it doesn’t report to Dun & Bradstreet or Equifax. And I’ve got about close to a hundred thousand dollars worth of revolving Chase cards that are used all the time, like all the time, all the time. I mean, I just, I use them all the time, but they don’t report all of them well, they report to Experian. So, but the other good news is is that if you use these cards, especially if you’re trying to do like a transaction, them not reporting is actually a good thing, because if you do a high utilization, that’s not going to show up on your personal credit, which is going to affect your personal DTI. And it’s not going to affect your utilization, your rating, typically when you’re trying to get more credit. Right? So those are the two things I want you to understand, but let’s take immediate action. I’ll see in the next module.