Chicago, IL · Member since 2016 · 5 posts · 5 votes
Does anyone know if it's possible to convert personal lines of credit to corporate lines of credit? I currently have about 70K of unused personal credit lines, but I refuse to use credit cards for consumer purposes, so they're just laying dormant (I only use them periodically to keep the lines open, and then immediately pay them off). I would like to use those cards for investing. I currently have 10K of corporate credit and have been approved for 40-50K of additional corporate credit. If I could convert the 70K of personal credit to my corporate lines, then I could use more towards investments without raising my utilization ratio beyond 35%. Any tips would be greatly appreciated. Thanks!
Vendor · Brandon, FL · Member since 2016 · 71 posts · 20 votes
9y
No. Corporate credit works on your Paydex Score which runs from 0-100. Your personal credit runs on an entirely different system which includes Statutes of Limitations and such. You can't marry the two. Why don't you get a cash line of credit to invest? If your ROI makes sense then a short term, higher interest unsecured personal loan might be the golden ticket for you. Idk. What is the interest rate on your corporate credit and is it liquid? It sounds as if maybe you don't want to be personally responsible for your debt but want it under the corporation - which is okay but then the question that begs to be asked is how quickly can you make a profit if you carry your debt load on your personal credit vs your business credit. At the end of the day what matters is how rapidly you can make a profit regardless of where the money comes from. That's my two cents. ; )
Vendor · Brandon, FL · Member since 2016 · 71 posts · 20 votes
9y
No. Corporate credit works on your Paydex Score which runs from 0-100. Your personal credit runs on an entirely different system which includes Statutes of Limitations and such. You can't marry the two. Why don't you get a cash line of credit to invest? If your ROI makes sense then a short term, higher interest unsecured personal loan might be the golden ticket for you. Idk. What is the interest rate on your corporate credit and is it liquid? It sounds as if maybe you don't want to be personally responsible for your debt but want it under the corporation - which is okay but then the question that begs to be asked is how quickly can you make a profit if you carry your debt load on your personal credit vs your business credit. At the end of the day what matters is how rapidly you can make a profit regardless of where the money comes from. That's my two cents. ; )
Chicago, IL · Member since 2016 · 5 posts · 5 votes
9y
@Account Closed Thanks for your reply. I sort of figured that it was not doable, but wanted to know if anyone out there knew of any loopholes before ruling that option out completely. I have cash lines of credit, however, they're in my name. It's not so much of me not wanting personal liability, but if you use over 35% of your max, then that drops your personal credit score. Being that I'm fairly new to investing, I can't accurately gauge how soon I'd get a ROI. Once I've run the process a few times and can realistically estimate that time frame, then I'd have no problem utilizing both corporate and personal credit for investments. But thanks for taking the time to answer my question, your two cents is appreciated :)
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
9y
@James D. Why not just go to a bank and get a mortgage, instead of doing all this credit card juggling? Plus a mortgage isn't revolving credit, so won't impact your score as much as maxing out a credit card. With the credit lines you mentioned, sounds like you have good credit, so it should a straight forward approval.