Real Estate Investor · Georgetown, MA · Member since 2008 · 250 posts · 6 votes
If you took out a small biz credit card with 0% interest for 12 month in order to buy things for a start up and floated the balance until you start making income to pay it off does it hurt your credit rating?
EX...lets say I buy $5,000 worth...but I don't pay it back until month 9. Will that hurt my credit? What if I paid the monthly minimum, does that help?
Real Estate Investor · Baroda, MI · Member since 2008 · 204 posts · 2 votes
17y
you should always make at least your minimum payments and pay them EARLY.
If you are every even a day late the bank will use that as an excuse to JACK up your APR. Unless you are referring to a no interest NO PAYMENTS...They WOULD still report to your credit but they cannot report anything negative unless you are actually paying late...
If you used a personal guarantee to get that credit and don't pay, it WILL be reported to your personal credit file & your business file.
Most cc companies will not report to your personal credit report until you are 90 days late but times are a changin' & im not sure what the recourse will be from these current times.
Real Estate Investor · Georgetown, MA · Member since 2008 · 250 posts · 6 votes
17y
Interesting...I don't have this current problem right now. I have 3 cards and have never missed a payment, always paid in full.
I was just entertaining a way to get some start up capital without paying interest. But it sounds like it will hurt my credit score if I float a balance like that. So i'd rather just pay with cash for the items.