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  1. #1

    Start Up Capital Credit Card Stackers...What Do They Pay in commish?

    Anyone have any experience doing them? I've been holding off on working these leads but I get calls every week for start up $$$ and I want a source that's worth the effort. I know there are lenders here that handle that...Lendio, Torro, Seek, Bitx, Nav. What's the good, bad and ugly. I know merchant needs good credit. Input appreciated.

    Thanks

  2. #2
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    Yeah how did guys like Insignis Capital work?

  3. #3
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    They're all good.
    Depending on who you use will depend how much you have to be involved.
    Getting involved with the credit pulls is the "hard" part, so each group has a different way they make it easier.

    Also, there are some that only do business cards, some do personal cards, and some can even do personal loans. The challenge that most of your clients will have is "I wanted a LOC, not a credit card." It's just a question of how to drag the money off of the card to do well.

    The only problem with most of them is that you can't up-sell more than 10% and you make between 2 and 3 points. Upsell over that.... your max is another 2.5.

    I can introduce you to a group that allows you to up-sell from 8 up to 15 and keep it all (max 7 points) and solves all of these problems. Client who would only get approved for like $30k in cards, we are getting them $200k in a personal loan.

  4. #4
    Senior Member Reputation points: 7232 NationalCorporateData's Avatar
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    Different "lenders" for the CC stacking program may sometimes incorporate personal loans, which can obviously get the borrower more than if they went the credit card route alone.
    Commission seems to vary from just 2-3 points to a full 50% share of up to 20 points being charged at closing.

    Good
    Access funds from multiple credit cards to get more capital than they normally would
    Cash-out from cards without having to card advance fees
    0% APR for 6-18 months

    Bad
    8-10+ credit hits in a short period, this doesn't get categorized as rate shopping so all hits remain
    Personal funds being used to finance business activity, granted many businesses do start with personal funds anyway
    The credit card companies may find out about each other if the program isn't executed correctly and cards can be cancelled
    Long time to fund, typically the borrower has to go through credit inquiry removal and paydown existing debt or balances

    Requirements
    680 FICO
    5 or less recent inquiries
    35% utilization or less across all cards

    Separate side note, Nav had a massive password breach recently so it might be good to avoid them for a while.

    Edit: 680+ FICO, as abfunders below mentioned.
    Last edited by NationalCorporateData; 11-11-2020 at 11:47 AM.

  5. #5
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    Quote Originally Posted by NationalCorporateData View Post
    Requirements
    ~650+ FICO
    5 or less recent inquiries
    35% utilization or less across all cards
    680 or above, but it's just a metric.

    In my experience, the difference between a 680 and a 700 is generally inquiries and high credit utilization, so generally best to focus on the 700+, although the ones with the inquiries will qualify for the personal loans if they have provable income. The biggest problem is that nobody likes showing income on their personal taxes.

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