Posted by Natalie-VA on July 19, 2007 at 08:54:04:
I would like to add that after doing this for over 7 years, trying to build credit in your business name is a complete waste of time, IMO. You’re always going to be asked to guarantee this stuff personally.
Setting up all of these different accounts with credit lines creates a lot of extra bookkeeping that I really don’t want to deal with anymore. The only benefit I see at this point is if we get contractor’s discounts by having those accounts set up. Otherwise, it’s just easier to put everything on the business mastercard.
Credit Cards for lines of credit - Posted by Bruce Reeves
Posted by Bruce Reeves on July 17, 2007 at 17:01:38:
Is their any disadvantage of applying for additional credit cards to have an open line of credit?
I have good credit (780 or so) and do not need a to borrow any money in the future. So it my score gets dinged a bit, I don’t mind.
I have five cards now with 70k or so in credit lines. If I can get more and get the line up to 100-120k, is there any downside?
Obviously this is for short term borrowing, but it would be nice to be able to make true cash offers and not hassle with hard money or private lenders.
Sorry to get in to your discussion here, but I did open a card under my company name, but they did ask for my SSN and company ID #, so you are saying that even if they do that, your credit report won’t show? Thank you!
I’ve opened about a dozen lines in my biz name without a single one reporting to my personal - all PG’d. It also is helping to build my business credit portfoloio as well.
Re: Credit Cards for lines of credit - Posted by Natalie-VA
Posted by Natalie-VA on July 18, 2007 at 12:52:25:
I have personally guaranteed business credit cards, business real estate loans and lines with material suppliers. None of them have ever shown up on my personal credit report.
They asked for your SOS because you had to personally guarantee the
card.
It takes a few years for your company to develop it’s own credit. Until
your company can soley purchase and lease things, you will have to
personally guararntee that the payments will be made with your credit.
I think every graduating senior should create a company, get an EIN
and open a business bank account with $50.00.
After they graduate from college in 4 or 5 years they now would have a
company and a bank account seasoned for 4 or 5 years.
They could apply for SISA (Stated Income, Stated Assets) Busness Lines.
Re: Credit Cards for lines of credit - Posted by Natalie-VA
Posted by Natalie-VA on July 18, 2007 at 16:41:29:
Material suppliers are those companies that provide material for the rehab work. We use different companies for paint, siding, countertops, garage doors, etc. If you set up a line with each of them, they’ll bill you monthly instead of everytime you buy something.