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Can Credit Card Stacking Help Your Startup?

Key Takeaways:

  1. Credit card stacking, or leveraging, is a financing strategy that involves using multiple credit cards to finance expenses.
  2. To qualify for credit card stacking, you need a good credit score, manageable debts, and a review of your business financials.
  3. The benefits of credit card stacking include high credit limits, flexibility, rewards, quick access to funds, and the potential to build a credit score.
  4. The drawbacks of credit card stacking include the risk of accumulating significant debt, misleading rewards programs, and an increased risk of fraud.
  5. To manage debts during credit card stacking, you should pay at least the minimum payment, monitor accounts closely, develop a budget, and consider setting up automatic payments.
  6. It is essential to understand the terms and conditions of each credit card and a plan for paying off debt.
  7. Credit card stacking can be a viable financing option for startups. Still, weighing the pros and cons and managing debt responsibly is essential.

Launching a startup is an exciting and challenging endeavor. But, without adequate startup funding, your venture may not be able to get off the ground, let alone thrive and grow.

According to a recent study, about 20% of small businesses fail within their first year, while more than 50% fail within their first five years. One of the main reasons for this high failure rate is the lack of funding.

That’s where credit card stacking comes in. It is a financing strategy that involves using multiple credit cards to finance your startup. It can be a great way to get the funding you need without relying on traditional loans or investors.

7 Figures Funding will look closer at credit card stacking and how it can help jumpstart your startup. We’ll discuss the benefits and drawbacks of using multiple credit cards, how to qualify for them, and how to manage your debt effectively. By the end, you’ll better understand whether this funding option is right for your startup.

What is Credit Card Stacking?

Let’s learn more about it before determining whether it’s right or wrong. Credit card stacking, or credit card leveraging, is a financing strategy businesses use to gain access to working capital. It involves taking out multiple cards and leveraging their high limits to cover costs. Though this method can be financially beneficial, it also risks accumulating significant debt if not managed properly.

How to Qualify for Credit Card Stacking?

There are three ways to qualify for credit leveraging:

Credit Score

Your credit score is the essential qualification for credit card stacking. A good credit score can enable you to qualify for more cards with higher limits, allowing you to stack them up and get access to more capital.

Debt-to-Income Ratio

It is another essential factor lenders consider when evaluating your application. Before offering credit card stacking, lenders will review the last two years’ taxes if self-employed and have manageable debts.

Business Financials

If you are an established business, lenders will look into your business financials, such as income, expenses, and cash flow, to assess how much debt can be managed.

Pros of Credit Card Stacking

Let’s first look at what benefits you can get from credit card leveraging:

High Credit Limits

Credit card leveraging has proven to be a valuable tool for startups and small businesses. It offers access to higher credit limits than traditional loans or single cards. Multiple cards enable you to easily acquire sufficient capital for your startup funding needs or expansion costs!


Credit card leveraging offers a wide range of options for how and when you spend money. Unlike traditional loans, which usually require security or specific usage requirements, credit cards allow businesses to use their funds for virtually any purpose – from buying inventory to acquiring equipment or launching marketing campaigns. It gives business owners more authority over their financial decisions and enables them to designate resources wisely.


Strategically utilizing multiple credit cards can help you reap maximum rewards and save money on company costs. For instance, one card might be used for office supplies to gain cashback. At the same time, another is employed for travel expenses that earn miles – enabling you to attain more benefits than if just a single card were utilized. Credit cards offer an array of advantages like points, mileage, and cashback each time the card is in use; with a wise choice of which cards are used when making purchases, these incentives become even better! Consult with a professional lender regarding credit rewards and any specific terms you need to consider.

Quick Access to Funds

Having multiple credit cards gives businesses access to more capital than using one card. In addition, lines of credit associated with some cards can help bridge cashflow gaps, enabling you to take advantage of discounts or purchase items needed for an upcoming project.

Building Credit Score

Business owners can build their credit scores rapidly with credit card leveraging. As long as payments are made on time, and the total amount owed is kept within a reasonable percentage of the overall limit, business owners can use their credit cards responsibly and increase their credit scores over time. The credit score can then be used to obtain better loan rates and lower interest rates on future credit cards.

Cons of Credit Card Stacking

Now, let’s look at some of the potential drawbacks associated with this strategy:

Debt Accumulation

Using multiple cards can lead to debt accumulation quickly if you don’t keep track of your spending. Without proper planning, it can be easy to rack up more debt than is manageable for your business.

Rewards Programs Can Be Misleading

Many businesses view different banks’ rewards programs as a significant advantage to using multiple cards. However, these programs often have hidden restrictions and limits, making them challenging to operate effectively.

Increased Risk of Fraud

Using multiple credit cards increases the risk of fraud due to their susceptibility to theft and other scams. Business owners need to stay vigilant about keeping their accounts secure.


How to Manage Debts While Credit Card Stacking

While using multiple cards, debts will accumulate. Without proper management, you could risk the business plunging into a deep financial hole. Here are a few strategies you can use to manage your debts:

  1. Pay at least the minimum payment for every card every month. It will help prevent late fees and damage to your credit score.
  2. Monitor your accounts closely, set spending limits, and regularly review statements to ensure accuracy.
  3. Develop a budget that considers all the expenses associated with running the business and allocate funds accordingly.
  4. Lastly, consider setting up automatic payments for each card. This way, you won’t miss any due dates or get hit with late payment charges.

Related: Horrible Startup Funding Advice – Steer Clear Of These 12!


When stacking credit cards, it is essential to manage debts effectively to avoid late fees and excessive interest charges. Following the abovementioned strategies, you can easily manage your finances and get your business off the ground! However, you must consult a professional lender regarding other financial options to make an informed decision.

Get Started with Credit Card Stacking Today

Looking for funding options to grow your business? Consider credit card stacking with 7 Figures Funding as a leading provider of 0% credit-stacking funding options in Orlando, FL. We can help you access the capital you need to take your business to the next level. Contact us today to get started.