Credit Card Stacking & How To Use It to Fund Your Business

Credit card stacking is the practice of applying for multiple credit cards simultaneously to access a larger unsecured line of credit. It works as an alternative financing solution for startups and small business owners, especially those who cannot qualify for a small business loan. When used carefully, credit card stacking can be a useful strategy for funding your business.

Who Credit Card Stacking Is Right For

Credit card stacking is best for business owners who need access to capital but cannot qualify for traditional business financing options like Small Business Administration (SBA) loans, business lines of credit, or working capital loans.

Generally, credit card stacking is best for:

• Startups: This practice is designed for individuals who want to fund their startup but can’t qualify for startup business loans. Most startups can qualify because qualification requirements are often based on your personal credit score.
• Low-revenue businesses: Businesses with relatively low revenues but are already in operation can still use credit card stacking for extra funding. Since credit card companies often check personal credit scores as a qualification requirement, having low annual revenues won’t necessarily disqualify you from this financing option.
• Quick funding needs: If you need quick funding, credit card stacking may be an ideal option because you can typically get approved and receive your cards within seven to 10 business days.
• Business owners with no assets for collateral: Credit card stacking doesn’t require any collateral, so it’s a good option if you don’t have assets to use as collateral.

How Credit Card Stacking Works

Credit card stacking works like an unsecured line of credit, where you use multiple credit cards to fund your business. The combined limits of your stack represent your unsecured line of credit, which is revolving and can be used repeatedly. There are two approaches to stacking: on your own or through a credit stacking company—both of which will be discussed later.

This practice is a decent alternative option to a business loan or business line of credit—and can even be an excellent option if you don’t have collateral to use for loans. However, because business credit card stacking involves an unsecured credit line, it’s considered high risk, so most providers typically require credit scores of at least 680 to qualify.

Here are a few important things you need to remember about how credit card stacking works:

• Your credit limit is revolving: You’re drawing on your credit limit every time you use your credit cards, and you must pay your balance on a monthly basis. Once you repay the amount you borrowed, the credit limit will be available for use again.
• You’ll accrue interest on unpaid balances: As with any business credit card, the remaining unpaid balances on each of your monthly statements will accrue interest until they have been fully paid off. Interest rates typically vary per credit card issuer.
• You’ll need to provide a personal guarantee: In most cases, a personal guarantee is required for credit card stacking. It gives your lender the right to pursue your personal assets if your business fails to repay its debt obligations. However, there are credit cards that don’t require personal guarantees that you may include on your stack.
• You don’t need collateral to qualify: With an unsecured credit card, you don’t need to pledge your business assets or personal assets as collateral.
• You need to pay your credit card balance, including interest and other charges: If you stop paying your credit card, the issuer will contact you regularly and attempt to collect payment. If no payment is made after 180 days, your debt will be charged off and will be sold to an external collection agency or sent to in-house collectors. You’re still liable for the charged-off account, including fees and interest charges, until it’s repaid. Non-payment can also adversely affect your credit score, limiting your ability to qualify for business loans.

Credit Card Stacking Without Card Stacking Companies

Credit stacking on your own can help save on annual servicing fees typically charged by card stacking companies. Such providers typically will charge you between 8% to 15% of your total credit limit, which can add up over time easily.

Step 1: Get Prequalified

Credit card providers qualify you based on your personal credit score, type of business, business and personal income, and business credit history. It’s recommended that you have a credit score of at least 680 for the best results. If your credit score isn’t strong, then you can find a personal guarantor willing to allow the bank to rely on their personal credit score and pay your debts in case you default.

Step 2: Choose Your Credit Cards

Choosing the right credit cards for your stack is a key part of credit card stacking. Your business’ spending goals and the rewards or perks you want to receive will likely determine which credit cards would best fit your stack. Examine the costs and fees—including the annual card fee and potential APRs—and find the ones that fit your business needs.

Step 3: Submit Your Applications

The best small business credit cards allow you to apply online and get a decision in minutes. It’s important to know that, when applying for different cards, multiple hard credit checks could have a negative impact on your credit score. As such, you should limit the number of cards you apply for to minimize the negative effect.

Step 4: Receive Your Credit Cards

Once approved, you’ll typically receive your cards within seven to 10 days. These can be used as your business’s unsecured line of credit to help with your funding needs. Each monthly statement will require you to make at least the minimum payment for each card, and any unpaid balances will accrue interest over the next billing cycle.

Credit Card Stacking With a Stacking Lender

Credit card stacking companies, also known as stacking lenders, will help you find the best credit cards for your startup or small business, help narrow down your options, and process the applications for you. While this is usually an easier option, such providers typically charge an annual service fee ranging from 8% to 15% of your total credit limit, which may vary per stacking lender.

Here are a few things that a credit card stacking company can do for you:

• Find out which credit cards you’re most likely to qualify for: Credit card stacking companies take into consideration your personal and business credit scores, your business industry, revenues, and other factors to decide which credit cards you’ll qualify for.
• Offer credit cards with the best deals: As there are more than 1,000 credit cards in the United States, it would take a lot of time and effort to compare every one of them to find out which ones offer the best terms and deals. A credit card stacking company uses its extensive knowledge of banks and card issuers to help you find the lowest APR, best introductory rate, and best deals according to your business’s preferences.
• Submit credit card applications for you: Credit card stacking companies will then submit applications for both personal and business credit cards on your behalf. Typically, a credit card stacking company will submit around seven to 15 applications at the same time to help you get the total credit limit that you need.
• Protect your credit score: Every time you apply for a credit card, the card issuer pulls your credit, which can harm your credit score. Credit card stacking companies can help protect your personal credit scores by submitting your applications strategically, which reduces the number of hard credit pulls on your credit report.

Once approved, you can immediately start using your stack of credit cards as a line of credit to fund your small business or startup. You’ll receive a monthly statement for each credit card and will most likely enjoy an introductory APR of 0% during the first six to 20 months. Any unpaid balances after the promotional period will be charged an APR. It’s important to keep track of each card’s interest rate, credit limit, billing cycle, and due date to avoid paying unnecessary fees.

Pros & Cons of Credit Card Stacking

Credit Card Stacking Costs

• APR: Depends on the card, typically 11% to 30% variable, which adjusts with the prime rate
• Annual card fees: $0 to $500 or more, sometimes waived for the first year
• Credit card stacking company’s servicing fee: 8% to 15% of your credit limit—applies only if you use a credit card stacking lender’s services

Best Business Credit Cards for Stacking

The best business credit cards for stacking are those that have zero to low annual fees, long 0% APR periods, low ongoing APRs, and rewards programs that are useful for your business. We also factor in the other benefits that these cards can provide, including flexible rewards redemption options and sign-up bonuses.

Here are the five best business credit cards for stacking:

To see how these cards stack up against others we reviewed on our site, simply click Add to Compare on a card below and choose up to two additional cards for comparison.

U.S. Bank Triple Cash Rewards World Elite Mastercard

APR & Fees

• Introductory APR: 0% on purchases and balance transfers for the first 15 billing cycles
• Ongoing APR: 16.24% to 25.24% variable, which will adjust with the prime rate
• Cash advance APR: 28.24% variable, which will adjust with the prime rate
• Penalty APR: 29.99%
• Annual fee: None
• Balance transfer fee: $5 or 3% of the transfer during the application, whichever is greater
• Foreign transaction fee: 3% of each foreign transaction
• Cash advance fee: $10 or 5% of the advance, whichever is greater
• Late payment fee: $40
• Returned payment: $40
• Overlimit: $40

Rewards

• 5% cash back on prepaid hotels and car rentals directly booked in the Travel Rewards Center
• 3% cash back on eligible purchases at gas and electric vehicle (EV) charging stations, office supply stores, cellphone service providers, and restaurants
• 1% cash back on all other net purchases.
• $100 statement credit for recurring software subscription expenses, such as FreshBooks or QuickBooks, within two statement billing cycles following 11 consecutive months of eligible software service purchases made directly with a software service provider
• $500 bonus cash back after you spend $4,500 on eligible purchases within the first 150 days of opening your account

You may redeem your cash back rewards as a statement credit, a credit to your U.S. Bank Rewards card, or as a deposit to your U.S. Bank business checking, savings, or money market account. There’s no limit on the number of rewards you can earn, and your accumulated rewards don’t expire as long as your account remains open and in good standing.

American Express Blue Business® Plus

APR & Fees

• Introductory APR: 0% on purchases for the first 12 months from the date of account opening
• Ongoing APR: 15.49% to 23.49% variable, which adjusts with the prime rate
• Penalty APR: 29.99% variable, which adjusts with the prime rate
• Annual fee: None
• Balance transfer fee: $5 or 3% of the amount of each transfer, whichever is greater
• Foreign transaction fee: 2.7% of each transaction after conversion to United States dollars
• Cash advance fee: Cash advances aren’t allowed
• Late payment fee: Up to $39
• Returned payment: $39
• Overlimit: None

Rewards

• 15,000 Membership Rewards® points after spending $3,000 on eligible purchases within your first three months of membership
• 2x points on the first $50,000 in purchases each year, then 1x point on all purchases thereafter

You can use your points to pay for purchases made with American Express Travel, Amazon.com, Ticketmaster, Best Buy, and other retailers. You can also use points for taxi fares, including tips, in certain taxis in New York City or redeem them for gift cards from a variety of merchants. You can also transfer points to American Express partner loyalty programs, like those offered by airlines and hotels. This card features expanded buying power, which allows you to go beyond your credit limit.

U.S. Bank Business Platinum

APR & Fees

• Introductory APR: 0% on purchases and balance transfers for the first 20 billing cycles
• Ongoing APR: 14.24% to 23.24% variable, which will adjust with the prime rate
• Cash advance APR: 28.24% variable
• Penalty APR: 29.99%
• Annual fee: None
• Balance transfer fee: $5 or 3% of the transfer during the application, whichever is greater
• Cash advance Fee: $10 or 5%, whichever is greater
• Foreign transaction fee: 3% of each foreign transaction
• Late payment: $19 on balances up to $100, $29 on balances from $100 up to $250, $39 on balances of $250 or more
• Returned payment: $35
• Overlimit: $39

Rewards

The U.S. Bank Business Platinum Card doesn’t offer introductory or ongoing rewards. The key benefit of using this card is that you get a competitive introductory and ongoing rate while enjoying a 0% APR on purchases and balance transfers for the first 20 billing cycles.

Chase Ink Business Unlimited®

APR & Fees

• Introductory APR: 0% APR on purchases for the first 12 months after opening an account
• Ongoing APR: 14.74% to 20.74% variable, adjustable based on the prime rate
• Cash advance APR: 26.49%, adjustable based on the prime rate
• Annual fee: None
• Balance transfer fee: Either 5% of the amount of the transfer or $5, whichever is greater
• Cash advance fee: 5% of the advance or $15, whichever is greater
• Foreign transaction fee: 3% for purchases made outside of the United States, charged in United States dollars
• Late payment fees: $40
• Return payment fees: $40

Rewards

• Unlimited 1.5% cash back on all business-related purchases
• $750 bonus cash back after spending $7,500 on purchases during the first three months after opening an account.

You can redeem your cash rewards, gift cards, and travel through Chase Ultimate Rewards®. You can also transfer your points to any of Chase’s airline and hotel partners at full 1:1 value with select cards.

PNC Cash Rewards® Visa Signature® Business Credit Card

APR & Fees

• Introductory APR: 0% APR on purchases for the first nine billing cycles after account opening
• Ongoing APR: 13.24% to 22.24% variable, adjusts with the prime rate
• Cash advance APR: 22.74% variable, adjusts with the prime rate
• Penalty APR: 29.74% variable, adjusts with the prime rate
• Annual fee: None
• Balance transfer fee: 3% of the amount of the transfer or $5, whichever is greater
• Foreign transaction fee: 3% of the amount in United States dollars of each foreign transaction
• Cash advance fee: 4% of the advance or $10, whichever is greater
• Late payment fee: Amount will be based on the previous balance shown on the statement.
  • $15 for previous balances of up to $99.99
  • $29 for previous balances of $100 to $249.99
  • $39 for previous balances of $250 and greater
• Returned payment fee: $35
• Overlimit fee: $39

Rewards

• $400 cash bonus after spending $3,000 in qualifying purchases within the first three billing cycles after opening an account
• Unlimited 1.5% cash back on all eligible net purchases

You can redeem your cash back anytime as a statement credit or as a deposit into an eligible PNC business checking or savings account.

Frequently Asked Questions

What is credit card stacking?

Credit card stacking is a strategy used as an alternative business financing solution where you apply for multiple credit cards at once to access a larger unsecured line of credit.

Can I combine all my credit card limits into one?

With credit card stacking, your credit cards will come from different issuers. Each card typically comes with a different credit limit, depending on what the issuer offers. While you can use your stack to access a larger credit limit, you cannot combine all your credit card limits into one card—so it’s important to take note of all your credit cards and their corresponding credit limits.

What’s the benefit of using a stacking lender?

While you can do credit card stacking on your own, using a stacking lender can make this process a lot easier. Credit card stacking companies know how to strategically submit applications that will minimize the number of hard credit pulls on your credit score. They also know which credit card issuers offer a low or 0% intro APR and which cards you’ll most likely qualify for based on your credit history, business industry, and income.

Bottom Line

Credit card stacking is an alternative form of business financing that allows you to fund your startup or small business through an unsecured line of credit. It’s a good financing option if you’re having trouble qualifying for an SBA loan or want to earn cash rewards. However, if you don’t want to monitor several credit cards, it’s best to consider applying for other business loan options.