Hello Creditnet, I'm Numommy and I kinda new to your site. I've been browsing for months before I registered. Basically, my credit is shot. I didn't decide to be a "grown-up" until my son was born two months ago. So, you'll see me around asking advice, etc. My first credit is about some info i received from a credit repair agency (who I won't name just yet). Anyway, they suggested that I "start a business", they draw credit under the business name and offer payments in exchange for lines to be dropped from my report. Is this even legal? Has anyone else received this advice? If so, did it work...and what happened when tax time came? Did you have to pay taxes on your "business"?
You could, but: a) your business needs to look like a business and it needs to eventually make a profit (plus you get all the tax and accounting hassles of your own finances in addition to those of "the business.") and b) for a small business, any bank willing to extend credit will be doing it based on your personal credit-worthiness. So, IMO, it's probably not worth the effort. Your best bet is likely to: a) clean up the sins of your past from your credit reports as best you can b) start building new credit through secured and low-limit/high fee cards c) don't repeat the same mistakes you made the first time. Good luck. Many of us have been there and know: a) how it sucks and b) how you can recover from it. It's not the end of the world, no matter how much it might seem like it.
I agree with the last post. I used to be part owner of a small business. Unless your "business" has good-looking financials, you would need a personal guarantee for any bank loan or business credit card anyway. Any personal guarantee will be based on your credit, not that of the business.
Sounds like an absolute scam to me (and a rather stupid business model for them) . . . is this CSO registered, licensed, bonded, a BBB Member, etc.? As had been stated before, you can't get business products without a decent personal score. Well, you can get Net 30's but, so what. I see this all the time where these scammers present an 80 Paydex as the end all be all. Without the personal side, it's largely worthless.
