Credit Card Stacking & How To Use It to Fund Your Business
This article is part of a larger series on Best Small Business Credit Cards.
Credit card stacking is the practice of applying for multiple credit cards in a particular order to access a more extensive 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.
Business owners use the credit card stacking method if they can’t qualify for high-limit business credit cards or if a credit card’s credit limit is insufficient for covering their business’s immediate funding needs. When used carefully, credit card stacking can be a valuable strategy for funding your business.
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. You can either do credit card stacking on your own or work with a credit stacking company to help you get started with card stacking.
What is a credit card stacking company? Also known as a stacking lender, it is a third-party service provider that helps business owners find the best business credit cards for their startups or small businesses. It will identify which business credit cards can best meet your funding needs, help narrow your options down, and process multiple card applications on your behalf.
This practice is a decent alternative to a business loan or business line of credit—and it 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 is considered high risk for card issuers, so most 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 are 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 accrue interest on unpaid balances: As with any business credit card, the remaining outstanding 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 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 have to pay your credit card balance when due, including interest and other charges: Using business credit cards responsibly can help you build business credit, which will eventually qualify you for other business financing options. Nonpayment of your credit card bills will adversely affect your credit score, limiting your ability to qualify for business loans in the future.
- 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.
For more information, read our guide on using credit cards to fund your business.
Pros & Cons of Credit Card Stacking
| PROS | CONS |
|---|---|
| Doesn’t require collateral | Requires a personal credit score of at least 680 |
| Allows businesses to take advantage of the multiple 0% introductory rates | Typically has higher ongoing interest rates compared to most small business loans |
| Comes with quick approval and funding | Requires borrowers to monitor several credit cards with different interest rates, balances, and due dates |
Who Credit Card Stacking Is Right For
Credit card stacking is best for business owners who need access to a substantial amount of 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:
- Business with immediate 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. Consider one of our leading business credit cards with instant approval.
- Business owners who can’t qualify for business financing: If, for any reason, you cannot qualify for a business loan or business line of credit, using a credit card stack is a great way to access a substantial credit limit. For instance, low-revenue businesses often have difficulty qualifying for financing, and since card issuers check personal credit scores as part of the qualification process, having low revenue won’t necessarily disqualify them from credit card stacking.
- Business owners with no assets for collateral: Unlike most business loans, credit card stacking doesn’t require any collateral, making it a good option if you don’t have or don’t want to use your assets to use as collateral.
- Startups: This practice is designed for individuals who want to fund their startup but can’t qualify for startup business loans. Most qualification requirements are often based on your personal credit score—so even if you’re just starting with your business, you may still be eligible as long as you have a good personal credit score. For options, check out our recommendations for the best business credit cards for startups and top business cards for new businesses with no business credit history.
Cost of Credit Card Stacking
- Annual fees: Some card issuers charge annual fees that could go as high as $695 per year. To minimize your credit cost, choose from the best business credit cards with no annual fees.
- Annual percentage rates (APRs): Ideally, you should pay your entire balance every billing cycle to avoid paying interest on your expenses. However, if you carry a balance to the next billing cycle, you will be charged with an APR that could go as high as 35%.
Take advantage of the 0% introductory APR. Some credit cards offer an introductory 0% APR period for the first six to 18 months, which is like letting you borrow money without interest. If you plan to use your cards for large purchases, consider one of our top-recommended business credit cards with 0% APR offers.
- Other fees: Business credit cards come with other fees, including fees for cash advances, balance transfers, and international transactions. It’s best to avoid taking out a cash advance as it often comes with a high APR on top of the cash advance fee. If you need to use your credit cards abroad, you can choose from our list of the top business credit cards with no foreign transaction fees.
- Stacking lender fees: Credit card stacking companies typically charge a fee ranging from 9% to 15% of the approved credit limit, which may vary per stacking lender. This fee only applies if you decide to hire a credit card stacking company.
For instance, you decide to hire a stacking lender that charges a 9% fee of your total approved credit limit, and it was able to get you approved for a couple of business credit cards with a total limit of $120,000. This means you need to pay a service of $10,800 to the stacking lender, which is a significant amount.
How Credit Card Stacking Companies Help Small Businesses
Here are a few things that a credit card stacking company can do for you:
- Find which credit cards you are most likely to qualify for: Credit card stacking companies take your personal and business credit scores, your business industry, revenues, and other factors into consideration to decide which credit cards you will qualify for.
- Offer credit cards with the best deals: As there are over 1,000 credit cards in the US, 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 stacking lender 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: A credit card stacking company will submit applications for personal and business credit cards on your behalf. Typically, it will submit around 7 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 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 will receive a monthly statement for each credit card. It’s essential to keep track of each card’s interest rate, credit limit, billing cycle, and due date to avoid paying unnecessary fees.
Credit Card Stacking Without Card Stacking Companies
Not hiring a stacking lender can help save on stacking service fees that could significantly increase your overall credit cost. Fortunately, you can stack credit cards on your own without the need to work with a third-party stacking lender. Follow these simple steps to get started:
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. Ideally, a credit score of at least 680 is recommended 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 vital part of credit card stacking. Your business’s 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 the 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. If possible, find issuers that won’t perform a hard pull on your credit report so as not to damage your credit score. Else, you should limit the number of cards you apply for to minimize the negative effect. Check out our leading small business credit cards for options.
Step 4: Receive Your Credit Cards
Once approved, you will typically receive your cards within 7 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. It’s best to pay your balance in full to avoid the risk of running up a credit card debt.
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 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, all without an annual fee:
Best For | Introductory APR | Rewards | |
|---|---|---|---|
 U.S. Bank Triple Cash Rewards World Elite Mastercard | Travel, fuel, dining, office supplies, and phone service expenses | 0% on for first 15 billing cycles | 1% to 5% cash back |
Credit Needed: Good to Excellent | |||
 American Express Blue Business® Plus | Flexible credit limit | 0% for the first 12 months | 1x to 2x points per dollar |
Credit Needed: Good to Excellent | |||
 U.S. Bank Business Platinum | Long 0% APR | 0% on for first 18 billing cycles | None |
Credit Needed: Good to Excellent | |||
 Chase Ink Business Unlimited® | Unlimited cash back | 0% for the first 12 months | Unlimited 1.5% cash back |
Credit Needed: Good to Excellent | |||
 PNC Cash Rewards® Visa Signature® Business Credit Card | Lowest ongoing APR | 0% for the first 9 billing cycles | Unlimited 1.5% cash back |
Credit Needed: Good to Excellent | |||
To see how these cards stack up against others we reviewed on our site, click Add to Compare on a card below and choose up to two additional cards for comparison.
U.S. Bank Business Triple Cash Rewards World Elite Mastercard®
BEST FOR:
0% APR for 15 billing cycles
Intro APR
Regular APR
19.24% - 28.24% (Variable)
Annual Fee
$0
Credit Needed
Excellent/Good
- Introducing the U.S. Bank Business Triple Cash Rewards World Elite Mastercard® the card that gives back on all your eligible business needs.
- Earn $500 in cash back. Just spend $4500 on the Account Owner's card in the first 150 days of opening your account.
- Earn 3% cash back on eligible purchases at gas stations and EV charging stations, office supply stores, cell phone service providers and restaurants.
- 1% cash back on all other eligible net purchases.
- Earn 5% cash back on prepaid hotels and car rentals booked directly in the Rewards Center.
- No limit on total cash back earned.
- Rewards never expire.
- Earn an annual $100 statement credit for recurring software subscription expenses such as FreshBooks or quickbooks
- 0% Intro APR on purchases and balance transfers for 15 billing cycles. After that, a variable APR currently 19.24% - 28.24%.
- No annual fee.
- Great Offer from U.S. Bank, a 2022 World's Most Ethical Company® - Ethisphere Institute, February 2022
- Terms and conditions apply
- Pay over time by splitting eligible purchases of $100+ into equal monthly payments with U.S. Bank ExtendPay™ Plan.
Pros
- 0% APR applies to both purchases and balance transfers
- Unlimited cash back rewards
- No annual fee
Cons
- Balance transfer fee is charged even during the introductory period
- Intro APR doesn’t apply to cash advances
- MasterRental car rental collision damage waiver: When you rent a car using your U.S. Bank credit card, you’re covered in case of accident or theft on all rentals made worldwide. Coverage is primary, which means you won’t need to use your personal auto insurance or accept the insurance offered by the rental agency. Coverage is capped at $50,000.
- Purchase assurance: U.S. Bank may repair or reimburse for items purchased with your U.S. Bank business credit card that are damaged or stolen within 90 days of purchase. Coverage is limited to $1,000 per loss, up to $25,000 per year, per account. Lost items and items left out of reach that others can see are not covered.
- Extended warranty protection: U.S. Bank will double the manufacturer’s warranty up to an additional one year from the expiration of warranties of five years or less. An item with a six-month warranty would be backed for an additional six months, for example. The issuer will replace the item or reimburse you up to the amount charged on your U.S. Bank card up to $10,000.
Intro APR
Regular APR
19.24% - 28.24% (Variable)
Annual Fee
$0
Credit Needed
Excellent/Good
- Introducing the U.S. Bank Business Triple Cash Rewards World Elite Mastercard® the card that gives back on all your eligible business needs.
- Earn $500 in cash back. Just spend $4500 on the Account Owner's card in the first 150 days of opening your account.
- Earn 3% cash back on eligible purchases at gas stations and EV charging stations, office supply stores, cell phone service providers and restaurants.
- 1% cash back on all other eligible net purchases.
- Earn 5% cash back on prepaid hotels and car rentals booked directly in the Rewards Center.
- No limit on total cash back earned.
- Rewards never expire.
- Earn an annual $100 statement credit for recurring software subscription expenses such as FreshBooks or quickbooks
- 0% Intro APR on purchases and balance transfers for 15 billing cycles. After that, a variable APR currently 19.24% - 28.24%.
- No annual fee.
- Great Offer from U.S. Bank, a 2022 World's Most Ethical Company® - Ethisphere Institute, February 2022
- Terms and conditions apply
- Pay over time by splitting eligible purchases of $100+ into equal monthly payments with U.S. Bank ExtendPay™ Plan.
Pros
- 0% APR applies to both purchases and balance transfers
- Unlimited cash back rewards
- No annual fee
Cons
- Balance transfer fee is charged even during the introductory period
- Intro APR doesn’t apply to cash advances
- MasterRental car rental collision damage waiver: When you rent a car using your U.S. Bank credit card, you’re covered in case of accident or theft on all rentals made worldwide. Coverage is primary, which means you won’t need to use your personal auto insurance or accept the insurance offered by the rental agency. Coverage is capped at $50,000.
- Purchase assurance: U.S. Bank may repair or reimburse for items purchased with your U.S. Bank business credit card that are damaged or stolen within 90 days of purchase. Coverage is limited to $1,000 per loss, up to $25,000 per year, per account. Lost items and items left out of reach that others can see are not covered.
- Extended warranty protection: U.S. Bank will double the manufacturer’s warranty up to an additional one year from the expiration of warranties of five years or less. An item with a six-month warranty would be backed for an additional six months, for example. The issuer will replace the item or reimburse you up to the amount charged on your U.S. Bank card up to $10,000.
- Comes with 0% APR for the first 15 billing cycles on both purchases and balance transfers
- Offers $500 bonus cash back after you spend $4,500 on eligible purchases within the first 150 days of opening your account
- Has unlimited ongoing 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, cell phone service providers, and restaurants; and 1% cash back on all other net purchases.
- Lets you earn a $100 statement credit for recurring software subscription expenses, such as FreshBooks or QuickBooks
- Has no annual fee
The Blue Business® Plus Credit Card from American Express
Intro APR
Regular APR
Annual Fee
Credit Needed
Intro APR
Regular APR
Annual Fee
Credit Needed
- Comes with 0% APR for the first 12 months on purchases
- Lets you earn 15,000 Membership Rewards® points after spending $3,000 on eligible purchases within your first three months of membership
- Offers 2x points on the first $50,000 in purchases each year, then 1x point on all purchases thereafter
- Has no annual fee
U.S. Bank Business Platinum Card
BEST FOR:
Extended 0% APR period on purchases and balance transfers
Intro APR
Regular APR
17.24% - 26.24% (Variable)
Annual Fee
$0
Credit Needed
Excellent/Good Credit
- 0% Intro APR on purchases and balance transfers for 18 billing cycles. After that, a variable APR currently 17.24%-26.24%.
- Expense management tool VISA Spend Clarity is free to access and sync expenses, set employee card controls, generate reports, and more.
- Great Offer from U.S. Bank, a 2022 World's Most Ethical Company® - Ethisphere Institute, February 2022
- Terms and conditions apply
Pros
- With a long 0% introductory APR period on purchases and balance transfers
- Does not charge annual fees
- Offers ExtendPay® Plan
Cons
- No introductory and ongoing rewards
- Balance transfer fee is charged even during the introductory period
- Needs Excellent/Good credit score to qualify
- SinglePoint® Essentials: SinglePoint® Essentials is U.S. Bank’s one-stop tool for viewing account balances and transaction details, transferring funds between existing U.S. Bank accounts, downloading statements, and making payments.
- Fraud protection: U.S. Bank offers fraud protection to ensure the safety and security of all cardholders. To learn more about U.S. Bank’s fraud protection services, you can set up a virtual appointment, call U.S. Bank, or go to the nearest U.S. Bank branch.
- ExtendPay® plan: This allows you to pay off balances over time by dividing eligible credit card purchases into affordable monthly payments with no interest—you only need to pay a fixed monthly fee.
Visa Spend Clarity: Another tool that cardholders can use to track spending and manage finances is Visa Spend Clarity.
Intro APR
Regular APR
17.24% - 26.24% (Variable)
Annual Fee
$0
Credit Needed
Excellent/Good Credit
- 0% Intro APR on purchases and balance transfers for 18 billing cycles. After that, a variable APR currently 17.24%-26.24%.
- Expense management tool VISA Spend Clarity is free to access and sync expenses, set employee card controls, generate reports, and more.
- Great Offer from U.S. Bank, a 2022 World's Most Ethical Company® - Ethisphere Institute, February 2022
- Terms and conditions apply
Pros
- With a long 0% introductory APR period on purchases and balance transfers
- Does not charge annual fees
- Offers ExtendPay® Plan
Cons
- No introductory and ongoing rewards
- Balance transfer fee is charged even during the introductory period
- Needs Excellent/Good credit score to qualify
- SinglePoint® Essentials: SinglePoint® Essentials is U.S. Bank’s one-stop tool for viewing account balances and transaction details, transferring funds between existing U.S. Bank accounts, downloading statements, and making payments.
- Fraud protection: U.S. Bank offers fraud protection to ensure the safety and security of all cardholders. To learn more about U.S. Bank’s fraud protection services, you can set up a virtual appointment, call U.S. Bank, or go to the nearest U.S. Bank branch.
- ExtendPay® plan: This allows you to pay off balances over time by dividing eligible credit card purchases into affordable monthly payments with no interest—you only need to pay a fixed monthly fee.
Visa Spend Clarity: Another tool that cardholders can use to track spending and manage finances is Visa Spend Clarity.
- Comes with 0% APR for the first 18 billing cycles on purchases and balance transfers
- Has no annual fee
- Comes with 0% APR for the first 12 months on purchases
- Lets you earn unlimited 1.5% cash back on all business-related purchases
- Offers $750 bonus cash back after spending $6,000 on purchases during the first three months after opening an account
- Has no annual fee
PNC Cash Rewards® Visa Signature® Business Credit Card
BEST FOR:
PNC Bank account holders who want to earn fixed-rate rewards
Intro APR
0% for 9 billing cycles
Regular APR
15.99% to 24.99% variable
Annual Fee
$0
Credit Needed
Good - Excellent
- Earn $250 cash bonus for spending $3,000 in the first three billing cycles
- 0% APR on purchases for the first nine billing cycles after opening an account
- Earn 1.5% cash back on all purchases
- No annual fee
Pros
- Doesn’t charge annual fees
- With sign-up bonus
- Has low ongoing APR on purchases and balance transfers
Cons
- Doesn’t offer 0% introductory APR on balance transfers
- Need to have an active PNC Bank account to qualify for the card
- Cash Flow Insight®: Designed to help you monitor and plan your cash flow, send invoices via email, get paid online, and manage payables digitally.
- Lost luggage reimbursement: You and your immediate family members can be reimbursed up to $3,000 per covered trip if your luggage was lost or stolen when you charge your entire travel fare to this card.
- Travel and emergency assistance services: You can call the toll-free, 24-hour benefit administrator line at (800) 992-6029 to get assistance and referrals while traveling away from home.
- Trip delay reimbursement: Covers up to a maximum of $300 per purchased ticket for reasonable additional expenses incurred when a Covered Trip purchased was delayed for more than 12 hours.
Intro APR
0% for 9 billing cycles
Regular APR
15.99% to 24.99% variable
Annual Fee
$0
Credit Needed
Good - Excellent
- Earn $250 cash bonus for spending $3,000 in the first three billing cycles
- 0% APR on purchases for the first nine billing cycles after opening an account
- Earn 1.5% cash back on all purchases
- No annual fee
Pros
- Doesn’t charge annual fees
- With sign-up bonus
- Has low ongoing APR on purchases and balance transfers
Cons
- Doesn’t offer 0% introductory APR on balance transfers
- Need to have an active PNC Bank account to qualify for the card
- Cash Flow Insight®: Designed to help you monitor and plan your cash flow, send invoices via email, get paid online, and manage payables digitally.
- Lost luggage reimbursement: You and your immediate family members can be reimbursed up to $3,000 per covered trip if your luggage was lost or stolen when you charge your entire travel fare to this card.
- Travel and emergency assistance services: You can call the toll-free, 24-hour benefit administrator line at (800) 992-6029 to get assistance and referrals while traveling away from home.
- Trip delay reimbursement: Covers up to a maximum of $300 per purchased ticket for reasonable additional expenses incurred when a Covered Trip purchased was delayed for more than 12 hours.
- Comes with 0% APR on purchases for the first nine billing cycles after account opening
- Offers $400 cash bonus after spending $3,000 in qualifying purchases within the first three billing cycles after opening an account
- Lets you earn unlimited 1.5% cash back on all eligible net purchases
- Has no annual fee
- Has a relatively low ongoing APR compared to most other business credit cards
Tips for Business Owners Planning to Use Credit Card Stacks
While credit card stacking can be a source of funding, it also comes with certain risks such as accruing substantial amounts of debt and not being able to pay your balance. The following tips can help you avoid such risks:
- Set a budget: A thorough budget planning can help you avoid overspending. Make sure to set a budget and stick to it so that you don’t spend more than what you need.
- Monitor your expenses: Tracking your expenses on multiple cards could be challenging, so you must use a reliable system that allows you to streamline your expense monitoring process. Ensure that you track your card transactions regularly to determine any trends that may lead to overspending.
- Pay your balance on time: Ideally, you should pay off your balances on time to avoid getting charged with APRs. If you need to carry a balance, make sure to settle at least the minimum required payment to avoid hefty penalties.
- Take note of each card’s due date: Keep in mind that your credit cards may have different due dates, even if they were approved at the same time. Be sure to take note and keep track of each card’s due date to avoid late payments.
- Set up automatic payments: If possible, set up automatic payments for each card to ensure you don’t miss a due date.
- Use rewards to offset charges: Some cards allow you to use rewards earned on purchases as a statement credit, which can help lower your balance. Unless you find a more useful way to redeem your rewards, redeeming them for statement credit is the most recommended option.
- Do not mix your personal and business expenses: Use your business credit cards for business-related expenses only. Commingling your personal and business expenses can cause a lot of problems with accounting, and it can also make tax season more difficult.
Frequently Asked Questions (FAQs)
No, you cannot combine all your credit card limits into one, even though you can use your stacked cards to access a larger credit limit. 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. It’s important to take note of all your credit cards, their corresponding credit limits, and when each card’s bill is due.
Spreading out your debt is typically better for your credit because your credit utilization ratio will not be too high on one credit card. Your credit utilization ratio is the amount of credit you use versus the total credit available to you. A high credit utilization may adversely affect your personal and business credit scores.
In a sense, yes, credit card stacking is a legal practice because there is no law that limits you from applying for as many credit cards as you want. However, if you lie about your income in your credit card applications just so you can get approved, you may face legal issues regarding perjury.
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 is a good financing option if you are 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 other business loan options. Explore the best easy business loans to find a better alternative to credit card stacking.
