What's Up with My Credit?

What do you think the best route to go is if your creditors will not work with you? I have a friend that fell behind and tried to get her creditors to work with her in the beginning to lower her payments, etc. They refused. It amazed me since I was the one that told her to call them and work with them to keep her credit. They will not lower her payments and she cannot afford them. Before she lost her job, she always made her payments on time. She said she was late once on one of her cards but it was about 2 years ago. Since the creditor refuses to work with her, she has just stopped paying them altogether. Of course, she knows thats not a good option, but in the light of things, she would rather keep her car than her credit cards! What do you think she should do now??

Lynette - great advice on how to get your number listed. Many of those that work at home miss out on business due to their numbers not being listed. Everyone needs all the business they can get!! I know many people who don't have landlines anymore; they just stick with their cell service. It makes it extremely difficult to verify. Even in the mortgage business, if you work for someone who does not have a land line, you may have trouble with securing your mortgage. If they can get their cell listed, then it will pass the QA that loans go through now. Thanks!!!

A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are.When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own.

Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information.

Good luck,

Ilya Bodner
Small Business Owner
Initial Underwriting Group ...

Many small business owners will be better prepared to manage their credit because of this series Lynette. Very thorough and well done!

This will be great information for everyone who is starting up and perhaps those that are in business to learn how to switch things over. My business is growing, so I know I will be paying attention! What about non-profits? Any suggestions for those? Or would you treat them differently?

You are right, to get business credit you must meet 3 simple requirements. 1 - Incorporate, 2 - Get a TaxID, 3 - Register with D&B. Along the way there are other things that a small business owner can do to help strengthen the credentials. Sincerely, Ilya Bodner Small Business Owner ...

In our research for business credit based loans we have found again and again that most alternative lenders look for 6 Trade Accounts on the D&B Report. Not only did the lenders want to see 6 active accounts reporting but the cumulative credit lines were to exceed $15,000. That?s not saying that anything lower will be rejected, but for optimal results it is recommended to have 6 accounts with $15,000 in total available credit. Search for ?strong business credit? (just like that in quotes) online to see what other mentoring services offer. Sincerely, Ilya Bodner Small Business Owner ...

please call me are send me info on business credit I started my company and incorporated it now I need to start building credit my company name 3rd chance financial ind address 6655 Silverleaf Ave Baton Rouge LA 70812 my email address kelvinkwilson36@yahoo.com ...

At one point, I once believed that great credit was all that was needed too, when it comes to loans and lending money or assets of any kind. This is really not the case. My experiences with banks and various lending institutions taught me that the business? bottom line is a fundamental issue considered by today?s financial organizations as part of their loan approving process. They need to be assured that you make enough money after your expenses to cover their loan payments. Even though I had a great credit rating, I was still just not making enough money to secure the type of loan I needed, especially when these banks considered the amount I was requesting and saw that after I paid my expenses, there was not much finance left. However, I did come across an ideal resource, www.thesnaploan.com. This website seems to be millenniums ahead of its time, when it comes to current lending practices. I was approved for a revolving line of credit that I can pay off and use again if I so decided. I really love this option. This website is a good place to start if you need an unsecured or secured loan, and you?ve been having difficulties elsewhere. This solution allowed my business to actually start fresh for the new year.

This is a very interesting post. However, I found that great credit still isn't all that it takes to get your business ahead competitively. I have great credit. I have paid off previous bills, and I pay my current bills on time. But because of the current level of activity in my business, I want to expand my services, which requires additional equipment and financial resources outside of what my business is capable of. Because I placed so much faith in my ?great? credit, I approved several banks an applied for a loan with a business line of credit. I was informed, as a matter of fact, that because I am writing off all my expenses to my bottom line, I did not qualify for the loan. The banks I approach are basically telling me that my business is not making enough money. So, I now have to wait until ...

I want to commend you on the valuable information you included in your article posted above. While I am aware of these fundamentals, I'm sure those less educated or experienced among our readers will appreciate the simplicity of the way you chose to define the concepts your explained. Great post!

Wow, this is a really practical post. In fact, I had no idea that this process could be such an advantage. Thanks for the post.

A lot of your post really hit home for me. I have great credit. I have paid off previous bills, and I pay my current bills on time. But because of the current level of activity in my business, I want to expand my services, which requires additional equipment and financial resources outside of what my business is capable of. Because I placed so much faith in my ?great? credit, I approved several banks an applied for a loan with a business line of credit. I was informed, as a matter of fact, that because I am writing off all my expenses to my bottom line, I did not qualify for the loan. The banks I approach are basically telling me that my business is not making enough money. At that time, I was desperately trying to keep up with the pace of a competitive industry. Traditional lending institutions turned out to be of grave disappointment to me, where I thought my great credit would carry substantial weight in the loan department. I just thought I would encourage anyone else who may find their business in this situation that there is hope. I found hope at www.thesnaploan.com. I did everything online and got my response to my application really fast. I know from personal experience just how dire this time of the year can be. It always nice to know there is room for promise.

hello, I am agree with you, we are providing good car loan rate from an auto lender is not at all luck, but rather a skill that you should learn. there are good car loan rates available to you if you know the tricks of the trade and how to negotiate the best possible deal for yourself. visit our url: http://www.carloan123.net/ http://www.auto-financed.com/ ...

Many people believe that if they have a $5000 limit on a credit card, they can charge away and as long as they pay their payments on time, they will be fine. I see that everyday. I have a client that has NEVER made a late payment on any credit card or car payment, however his scores are in the sub prime range and they should be in the 700's. I cannot tell you how many clients I counsel on the use of their credit cards to bring up their score, some listen, some don't. All we can do is to try to inform people and hope for the best! It's up to them to decide whether they listen or not. If not, then sooner or later, they will learn the lesson the hard way.

Hi, Do you want to learn CFA or have any experience in this test. Please visit and contribute to my website. www.cfastudy.info or www.cfa-study-guide.com Thanks for your times ...

Those must be two of the most dreaded words when you think of your credit. But, you are right; you can come back from a foreclosure and a bankruptcy. Most lenders realize that things happen. After all, they are human too. However, if you do have a foreclosure or a bankruptcy, be sure to keep your credit clean after these events take place. By Michelle paying the remainder of her bills on time, she will prove to the mortgage company in her future that she deserves a second chance. If a lender sees derogatory credit after a foreclosure or a bankruptcy, they will judge your credit more harshly and most times will deny the loan. As far as the time to wait after these events, it can actually vary from 2 to 3 years before some lenders will qualify you. They want to see that you have regained your good payment history.

Most mortgage companies are now more willing to work with their homeowners than ever. If you fall behind to the point that you cannot get caught up on all the back payments, your mortgage company can offer you a modification agreement. What this does it gives you somewhat of a fresh start. You pay your mortgage company one payment and they will put the rest of the arrearages at the end of your note. There are many companies out there that will tell you they are offering this to you, so contact your mortgage company to make sure that who ever you are dealing with has that power. Once you sign this agreement and your mortgage company approves it, then you basically start over on your loan. You will also have to fill out financial statements and show them how you will be able to make your payments. If you feel that you are able to keep up your payments from here on out but just can't get caught up, this is a great solution. As far as your credit goes, once the agreement is in force, they will begin reporting your pay history as current and not show that you have any past due amounts owed. It will take some time, but your credit will eventually recover, and it will show that although you went through a rough time, you are working hard to recover. Good luck!

I don't think Lynette fully understands the difference between a "soft" inquiry (one typically made by yourself or through promotion by credit agencies) and a "hard" inquiry (one made by potential creditors, collectors, etc.) When you sign up for a credit monitoring service, every time you check your report you incur a "soft" inquiry. This has absolutely no effect on your credit score, per Fair Isaac and Co. I have probably incurred close to 300 self-imposed soft inquiries through credit monitoring and seen only increases in my score. I have now used three separate credit monitoring services, and it's a soft inquiry every time I hit my report. Hard inquiries, on the other hand, very much do count against you, minimally at first but then snowball. They count for 1-2 years, depending on the scoring method. You only get hard inquiries by applying for credit/mortgages or if a creditor/collector wants to see what you're "up to." In the anecdote above, it's far more likely that "George" got hard inquiries from another source, and/or there was another factor influencing his credit. Also, he may have a 100% inaccurate "credit score," unless he got it from Fair Isaac & Co (myfico.com). All other scores are based on quickly thrown-together scoring models and are used by no creditors. For some people it's important to check credit far more frequently than once a year. For these people it's essential that they know that checking your own credit will not hurt your score. FICO says so, the credit reporting agencies say so, and it's the truth.

As you are working your way through your credit report, don't get discouraged when you see accounts that keep showing up as if they are new. The older a closed or collection account is, the less impact it will have on your credit score. The trick that collection agencies use to keep damaging your credit is to sell your debt to another collection agency. Then it is posted as a new collection account on your credit. This can be most frustrating for consumers. If you do not have the money to pay such an account off and it is not an erroneous account, be sure that the "date of last activity" is correct on your credit report. If the account is opened up as new, it still must show the date of last activity and if they report this correctly, it will still be visible as an old account and therefore will not affect your score.

I have seen many clients in George's situation. They don't realize what inquiries can do to their credit. Any credit report will show the inquiries for the last 90 days, but the credit agencies look over the last several months and if it has been pulled consistently in the last 12 months, it's certain death for your score! But please beware of the "credit repair" agencies out there! I have had numerous clients that signed and paid up front money to a credit repair agency only to have their credit in worse shape than when they started. They all promise the same thing...an increase in your score as much as 100 points in as little as a month. Anyone who deals with credit on a daily basis can tell you that it is impossible for your credit score to go up that fast. Even though it may come down 100 points in a month, it takes much longer for your scores to go up. The credit bureaus want to see that you are stable and back to paying your bills on time before they will raise your score and even then it is only a little at a time. Credit repair agencies cannot do anything that you cannot do for yourself, if you just invest a little bit of time. Obtain your credit report at www.annualcreditreport.com. Report anything that is on your report erroneously to the respective bureau and they will contact the creditor. Once they receive notification, they will fix the error on your credit report. If they receive no response from your creditor, they will remove it from your credit. You will need to monitor this during the process. This may take a little more time and effort on your part, but your scores will be safe and you will not do any further damage to your report.

There are also several other factors that play into your credit score. Credit scoring is based on several things including, 1.) the number of open lines of credit, 2.) the length of time an account has been open, 3.) outstanding balances compared to account limits, 4.) amount of payments that were 30, 60, and 90 days late, and 5.) the number of inquiries in the last 90 days. Only approximately 35% of your credit score is actually based on your payment history. This includes credit cards, retail accounts, mortgages, and any other account that is reported to the credit agencies. This part also includes any judgments against you, collection accounts, bankruptcies, etc. Approximately 30% of your credit score is based on the amount you owe. This is where the balances on your credit lines are involved and having more than a 50% balance of your limit can bring down your score. If you have several lines of credit that are maxed out and you pay the payments on time, you are still considered to be a high risk because of the balance on your accounts. Approximately 15% of your credit score is based on the length of your credit history. This is not only how long you have been obtaining credit, but also how long each account has been open. Even if you have a 740 score, it will go down a bit after a new purchase until you prove your payment history. Approximately 10% of your credit score is based on if you are taking on new accounts. Such factors as how many new accounts you have, how long they have been open, and how many accounts you may have applied for and not opened effect this portion. And approximately 10% of your credit score will be based on the different types of credit you have. The credit agencies like to see diversity. They not only check the balance and pay history of your credit cards; they want to know what kind they are. They like to see a mix of department store, gas cards, and major credit cards. If you currently have one type of credit card, you should consider applying for a different one only if you have made all your payments on time. Not only do they want to see different types of credit cards, they want diversity in types of accounts as well. Installment loan accounts, finance company accounts, and mortgage accounts are considered different types of accounts. You can also have too much credit, so be careful and don't think you have to go and open up an account of each type. Just try to diversify your credit portfolio and make your payments on time, and your score will come up. Please also know that credit inquiries can bring down your score quickly as well. When your credit report is obtained by anyone, it leaves an inquiry on your report. If you have several inquiries in the last 90 days and no new accounts have been opened, it will count against you as well. Be cognizant of who is pulling your credit and if you have applied for credit recently; wait several months before applying again.

Car Loans ...

I am agree with your thinking.

THat Bankrate.com is a good site.

HSBC is one of the worst cc that anyone can obtain. they are very dishonest.

Who cares what Bush says? Look at the numbers, not how they're spun (I'm talking to you too, Gen. Petraeus) and it's clear that the subprime loans can't be contributing that much to the problem--despite the hype.

...even a broken clock is right twice a day.

I look forward to checking your personal finance page every week, but this week I find a Bushy shoving George Bush in my face in a boring blog and saying he's right. When did your site go rightwing? I'm going to surf over to CNN's finance page from now on in the morning.

Bush never gets anything right. History has proven that. Lousy blog. Inaccurate. Not helpful. I won't be coming back to your allbusiness.com site.