Jack McColl, the founder of Credit Stacking talks to us about what a game-changer credit stacking is. His framework has helped businessmen achieve financial independence while maintaining debt under control.

What Is Credit Stacking?
Simply put, it involves access to money for your business without you having to break the bank. A common mistake by entrepreneurs is putting all their eggs in one basket. They use their hard-earned savings to finance their business. They go all in, and if the business fails, they have no finances to fall back on. One could opt for an equity partner or take a business loan. Loans help serve the purpose but come with huge interest rates. With credit stacking, businesses gain access to thousands of dollars. This is through business credit cards with zero interest. The best part — their personal credit score remains unaffected!

What Do You Need?
When applying for the card, several points are looked at before approval. Your personal credit is important. The type of business you are in (tourism, transportation, construction, etc.). The age of your business is also important. It is easier to receive funding if the business is over 2 years old. However, a good credit score trumps the age aspect. Having a good relationship with big banks is a plus. This is established through personal credit cards or business checking accounts with these banks. A good business credit score, of course, is a must.

How Does It Work?
The best banks to help you with a zero-interest business credit card are Chase, American Express, and Bank of America. Work on developing a relationship with these banks. The card can be yours with no income verification, no tax returns, and no documentation. Your personal credit score is important. Optimize your profile by clearing late payments. Increase your credit limits. Set up auto-payments to ensure you clear your dues on time. Different banks have different rules about how many cards you can apply for. It also depends on which state you are in.

Are You A Beginner?
You need not worry — you can still avail of credit stacking. You could ask a friend or relative to add you as an authorized user on their oldest credit card. Their clean payment history will give you a better chance at increased funding. Avoid applying for too many personal credit cards or loans. It could be a red flag if you apply for, and get approved for multiple credit cards across different banks.

Our Top Tips!
For your business banking, head to Chase. The relationship you build with them will add a ton of value to your credit. Get cards like AmEx Gold which offer great rewards like 4x points on every dollar spent. Use these points for travel, dining out, or other activities. Ensure you check your personal credit score at www.myscoreiq.com. This score updates every month and helps you get a look at your credit report before you apply. It serves as an opportunity to get things right before the banks take a look at your report.

Jack has mentorship programs on his website to help businessmen get the funding they need. Our article briefly covered the topic; head to our episode on Making Bank to catch the specifics and learn more.