I have been reading- alot. lol- and have come across a lot of older but very interesting material, and am still wondering if certain things still work as well as they used to...
If you go at it the right way it does but using it to get personal credit is an almost sure way to get into severe trouble. If you start a corporation and use it to get corporate credit without personal guarantees then that is acceptable. Just claiming you have a business and get an EIN for that and attempt to get credit for buying personal stuff is a sure way to get into serious trouble. That's why the only real way to do it is to start an anonymous corporation and get credit for that. Even so you then need to purchase only things for the corporation and not a bunch of the world's junk. Use it right and it can work. If not you can get yourself into real trouble.
I was just curious- I am a childcare provider, and have ran a succesful small licensed childcare program for years. I have a business license, and an EIN number- I never thought of applying for a staples card or anything like that to get credit though...
It is my understanding that Staples or Office Depot might be the easiest to get credit from. I have not applied to either one so can't confirm. In any case, although probably useful from time to time I'm not interested in small time credit like that. I'm building up to much, much larger credit lines than that. Little lines of credit like that don't lead to large credit lines. I'm working on a line of credit of at least $100K and to get that kind of credit without personal guarantee takes a bit of doing. It is one thing to establish credit with a personal guarantee and quite another to establish credit with no personal guarantee. If you have excellent personal credit getting a line of credit for your business is a snap so long as you are willing to put your personal credit on the line to get it. I'm not willing to do that so I have to be much more cautious than if I were putting up my personal guarantee. If you are attempting to get credit under a DBA without a personal guarantee it is much more difficult than doing it for a corporation. I'm doing it for my corporation. To start with your corporation has to have been in business for at least two years. Mine has been. It is also necessary to show a fairly decent balance sheet showing how the corporation makes it's income. You also have to be listed with Dunn & Bradstreet and other business credit reporting agencies, not the 3 consumer credit bureaus. They are irrelevant to corporate or business credit.
Thanks for the info- I have no desire to go after that kind of credit- I do buy a lot of crayons, markers, and paper proucts though!
I am 35 yr old, and pretty much have no personal credit- I have always paid cash for everything- I do have a couple of very old things that I just got deleted off my CR this week, and I have a small student loan that will be paid off next month... I just have always been raised to not spend beyond my means, and have had the attitude that if I did not have the cash, then i did not need to buy anything.... So really, I need to start from scratch. It would be nice to have credit available in case i need it. I have been learning a lot from reading here, and it is amazing the knowledge i have learned. I feel like i am not helpless, and that there is some hope of getting somewhere....
Well, you have a successful business so getting at least some cash shouldn't be a major problem. If you can get your hands on or already have somewhere around $500 to $1,000 cash I'd recommend the old 3 banks trick. It works.
Yeah we were discussing this tonight...with higher $ amounts, but will probably do it in January...After Xmas tree season is all done, there is reasily available cash to do things with...
I think it is where you get a small signature loan from three different banks (all of which need to report to the big 3 CRAs) and you also open a savings account at each bank too and deposit the loan proceeds into the savings accounts and then set up an automatic draft for the loan payments each month so that the loans pay themselves off without you having to do much of anything and your credit shows three positive TLs. At least I *think* that is what they were referring to!
Just check out my google docs links page and you will find it there. It is all explained step by step.
No, not signature loans at all. If you can get signature loans from banks then you don't need any tricks. And the loans must be $1000 and up at most banks or they won't do it. So small may or may not be the word for it. Just depends on what we call small I guess. I normally use amounts of $5000 when setting up new credit for new corporations which I have started. They don't call $5,000 small signature loans. That's true for personal credit but for corporate credit I don't want any of my corporations getting reported to the big 3 credit bureaus. I want only Dunn & Bradstreet and some other business only reporting bureaus. Never any of the consumer stuff. I also never give any personal guarantees or personal social security numbers in the process. Only corporate EIN numbers. The trick does work for personal credit as well however. No, not every month, every week. 12 weeks to great credit. Now how are you going to set up automatic payments from a savings account? I didn't think you could do that. Am I wrong? I wouldn't do that anyway. It would end up being at least 4 bounced checks for each of the 3 banks every 4 weeks. So that's 12 bounced checks on a set of accounts you were trying to build good credit on at the least possible price? I don't think so! (LOL) Maybe it would be better if you didn't try to explain things to others that you obviously don't know about yourself. (LOL) At least I *think* that is what they were referring to! [/quote] Ah! Famous old disclaimer clause. (LOL)
Ah! Famous old disclaimer clause. (LOL)[/QUOTE] RUDE. I was just trying to be helpful and I'm pretty sure I did mention that I wasn't sure that's what you meant. Also I'll add that the tactic that I mentioned IS a tried and true credit building technique.
