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How To Use Credit Card Stacking for Business Financing

Written by Marc Guberti

Marc Guberti is a Certified Personal Finance Counselor who has been a finance freelance writer
for five years. He has covered personal finance, investing, banking, credit cards, business
financing, and other topics.
Marc’s work has appeared in US News & World Report, USA Today, Investor Place, and other
publications. He graduated from Fordham University with a finance degree and resides in
Scarsdale, New York.
When he’s not writing, Marc enjoys spending time with the family and watching movies with
them (mostly from the 1930s and 40s). Marc is an avid runner who aims to run over 100
marathons in his lifetime.

Updated October 19, 2023​

6 min. read​

Every business need money, but some companies need to tap into loans and lines of credit to address maintenance costs and opportunities to expand. While many lenders provide financing for small businesses and entrepreneurs, they also have requirements. Banks and credit unions typically have the most stringent credit score, revenue, and work experience requirements that can shut out startups. Established businesses that have fallen behind on payments can also have a more difficult time getting capital from financial institutions.

Credit stacking is a viable solution for small business owners who need financing right away. Not only does this funding source have more lenient requirements, but you can also receive the money a lot faster. We will explore how credit card stacking works and some things to keep in mind before getting started.

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What is Credit Card Stacking?

Credit card stacking is an alternative route for business owners that want funding. Many businesses use these alternative funding sources if they cannot qualify for a small business loan, but others prefer the quicker nature of credit card stacking.

How Does Credit Card Stacking Work?

A business credit card gives you a credit limit that you can borrow against. These unsecured cards can provide funding, but the credit limit of one card isn’t enough for everyone. As a result, some business owners strategically apply for several business credit cards at the same time to access a higher credit limit.

However, it’s a lot of work to find business credit cards, do the research, and apply for them. Credit card stacking companies do all of this work for you. They know the best business credit cards and let you easily apply for the ones that make sense for you. You won’t have to spend hours finding the right cards and submitting applications to each option. It’s a good idea to work with a credit card stacking company if you want to save time and get quick access to capital.

Who Credit Stacking Is Best For

As with any financial product, it isn’t for everyone. But if you are in one of these categories, credit stacking can make sense for your business and provide the necessary capital to maintain operations and expand your company.


Early-stage companies struggle to get financing because banks and credit unions perceive them as having greater risks. While this stance is understandable since most businesses fail within a few years, it can complicate a startup founder’s journey to building a vibrant company. Credit card stacking gives startup founders the opportunity to borrow capital for their businesses. Once they verify the proof of concept and use scaling to increase profit margins, it’s easier to qualify for traditional business loans. However, you need a funding source in those early stages, and credit stacking can help.

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Low-revenue Business

Most lenders have revenue requirements. These use these requirements to assess if a business owner can keep up with monthly payments. This parameter makes it harder for low-revenue businesses to get financing, but some lenders present lower barriers to entry. You can have an easier time getting a line of credit since you don’t have to make monthly payments until you borrow against the credit line. You can also borrow at your own pace, so you can scale back your borrowing if you need to take a break or want to rethink how you use the funds.

Businesses Who Don’t Qualify for Traditional Loans

Not every business qualifies for a traditional loan, but the need for money doesn’t go away. It’s easier to get funding from credit stacking than a traditional small business loan.

Businesses Who Need Quick Funding

Even if you get a traditional loan, it can take a long time to receive payments. Loans from the U.S. Small Business Administration (SBA) may not arrive in your bank account for up to three months. That’s how long the approval process can take. Online lenders provide a range of alternatives that can put the funds in your bank account within a few days. If you can’t wait a few months to receive funding, credit stacking can be a good option.

No Assets/Collateral

Some lenders require collateral to take out a loan. This arrangement protects the lender if the borrower cannot repay the loan. Companies without collateral will have a more difficult time getting traditional financing, but credit stacking solutions do not require any collateral. A credit stacking company can pair you with unsecured credit cards which don’t require security deposits and have no collateral requirement.

Pros and Cons of Credit Stacking

Credit stacking has several advantages and disadvantages that you should consider before getting started. Here are the highlights:

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  • Easier to get financing: Credit card stacking has fewer requirements than traditional loans. An easier path to financing can make you feel more certain about getting the money you need for your business.
  • You get cash sooner: You won’t have to wait several months to get your loan. You can get approved for an unsecured business credit card within 7-10 business days, but some issuers provide their cards easier. It’s easier to wait 1-2 weeks than 1-2 months.
  • Streamline the application process: Credit stacking companies apply on your behalf for credit cards. They have a streamlined process and know which cards make sense for you.
  • Introductory rates for new cards: Many business credit cards have introductory 0% APR offer that last 6-18 months. You won’t find that type of offer for a traditional business loan.


  • Interest rates and fees: Credit cards have higher interest rates than traditional loans, and some of them have annual fees. Credit stacking companies do their best to minimize your expenses, and if you repay the credit line after the introductory APR, you may not owe interest.
  • It can take a lot of time: You have to do research, find cards, and apply for each one if you do it alone. Credit card stacking lenders can save you hours of time. They have already compared business credit cards and know the best ones for your company.
  • You have to monitor several credit cards: That means logging in and out of several dashboards and making sure you don’t miss any payments. Credit stacking companies make it more convenient for you and simplify this part of the experience.
  • Hard credit checks: Each credit card application results in a hard credit check, an event that can adversely affect your score. Credit card stacking companies protect you from this scenario. They know how to find credit cards that only do soft pulls and aren’t as stringent.
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Using Credit Stacking to Finance Your Business

Credit stacking is a great model for businesses that need quick financing at 0% introductory rates and cannot get conventional loans. However, before committing to credit stacking, consider the following details.

Know Which Credit Cards You Qualify For

Many credit card issuers have basic requirements. For example, they may have credit score minimums and other details. While credit card companies are typically more lenient than banks and credit unions, you don’t want to submit applications to credit cards that you don’t qualify for. It will waste your time and result in hard credit inquiries adding up.

Understand the Costs and Fees

Read the fine print to understand what the costs and fees are for each credit card. What is the fee for a late payment or cash advance? Does the credit card have an annual fee? Asking yourself these types of questions will help you avoid credit cards that cost more than they should.

Shop Around and Compare Lenders

Lenders have varying interest rates, terms, and requirements. Shopping around will help you find lenders that save you money. Being patient can help you secure lower interest rates. If you like a lender, keep their information open in a tab so you can quickly refer back to them.

Learn How to Manage Multiple Credit Cards

Each credit card has a minimum payment, interest rate, fees, and other components. Falling behind on a single credit card can hurt your credit, even if you do well with your other cards. Only take on as many credit cards as you can manage, and get into the habit of periodically logging into each of these accounts, especially before bills become due. You can create a list of credit cards and due dates in a spreadsheet or keep them on a note.

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Get the Ones with the Best Deals and Rewards

Credit cards offer reward programs to encourage signups and retain existing cardholders. When looking for credit cards, find the ones that reward you the most for spending and have long introductory windows with 0% APR. Then, get the most out of your credit card usage by seeking issuers that reward their cardholders.

Monitor Your Credit Score

You should monitor your personal and business credit scores since lenders look at them before giving you any financing. It becomes more important to focus on your credit score if you take out multiple credit cards. If your score takes a hit, you may be able to track it as a late payment on one of your credit cards. Making the payment right away can remediate the situation. Improving your credit score can also help you get a traditional loan and score lower interest rates on future capital.

Watch Out for Scams and Predatory Practices

Some lenders get greedy and stuff hidden fees in the fine print. They may charge excessive interest rates on cash advances and any money you accumulate on your credit balance. Some people may create fraudulent pages of credit card companies promising a guaranteed card even if you have poor credit. If it sounds too good to be true, it may be a scammer hoping you provide them with sensitive information.

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