Archive for October, 2009
Can bad business debt go on your personal credit report?
christine s asked:
I opened up a couple of accounts for my business in 2005 but under my tax ID number. Unfortunatley the accounts went bad because I was in a car accident and now can’t work. Does this go on your personal credit report or the duns and bradstreet report.
JORDAN
I opened up a couple of accounts for my business in 2005 but under my tax ID number. Unfortunatley the accounts went bad because I was in a car accident and now can’t work. Does this go on your personal credit report or the duns and bradstreet report.
JORDAN
Your Personal Credit and Your Business Credit History
Posted by admin in Business Ideas on October 21, 2009
Pamela Williams asked:
When establishing a separate credit history for your business, does your personal credit matter? Does it make a difference whether or not you have good personal credit? As a business owner, why should you be concerned about your personal credit score?
Your Personal Credit and Your Business
As a new entrepreneur, you may need to apply for a loan in order to finance your business. Without business credit, lenders would be looking at your personal credit history instead to determine whether to approve or decline your application. Thus, having an excellent personal credit or a high FICO score would surely win you an easy approval from your preferred lender. Consequently, if you have a low FICO score or a questionable credit, you may find it more difficult to get approved for a loan.
On the other hand, you may also be able to obtain the loan you need by applying for a bad credit business loan. Lenders who offer poor credit business loans always approve clients regardless of the status of their credit. However, these loans are expectedly more expensive than loans that require good credit.
Clearly, the status of your personal credit score makes a difference in getting the financing you need for your business. But what happens after your loan has been approved? What’s the next step in building your business credit? Why should you establish a separate credit history for your business?
Establishing Your Business Credit
As soon as your loan has been granted, you should take the necessary steps to establish a separate credit for your business. Make sure that you’ve obtained all the necessary permit, licences, tax id numbers, and registration numbers that are required for businesses. Afterwards, register your business with a business credit reporting agency like Dun & Bradstreet or Experian Business.
Remember to submit your monthly loan payments on time to build good credit. At the start, any delays or misses on your payments will also reflect on your personal credit report. Why is this? Since your personal credit history was used on opening up the loan, your credit report acts like a co-signer for your business. Therefore, it is crucial to keep up with your payments not only to build a good business credit but to protect your personal credit as well.
After some time of consistent payments, you should have already established your corporate credit. You may need to wait a year or more before you can completely separate your business credit report from your personal credit report.
New businesses are just like a teenager who’s just starting to build a credit history for himself. At first, a student may need a co-signer to get a loan but once approved, a student can slowly build his own credit history and after a while, he can easily apply for new credit without relying on other people’s credit. Clearly, if you plan to venture in business, preparing your personal credit is a must. Although a good personal credit history isn’t necessary required to start a business, it is definitely an advantage.
WADE
When establishing a separate credit history for your business, does your personal credit matter? Does it make a difference whether or not you have good personal credit? As a business owner, why should you be concerned about your personal credit score?
Your Personal Credit and Your Business
As a new entrepreneur, you may need to apply for a loan in order to finance your business. Without business credit, lenders would be looking at your personal credit history instead to determine whether to approve or decline your application. Thus, having an excellent personal credit or a high FICO score would surely win you an easy approval from your preferred lender. Consequently, if you have a low FICO score or a questionable credit, you may find it more difficult to get approved for a loan.
On the other hand, you may also be able to obtain the loan you need by applying for a bad credit business loan. Lenders who offer poor credit business loans always approve clients regardless of the status of their credit. However, these loans are expectedly more expensive than loans that require good credit.
Clearly, the status of your personal credit score makes a difference in getting the financing you need for your business. But what happens after your loan has been approved? What’s the next step in building your business credit? Why should you establish a separate credit history for your business?
Establishing Your Business Credit
As soon as your loan has been granted, you should take the necessary steps to establish a separate credit for your business. Make sure that you’ve obtained all the necessary permit, licences, tax id numbers, and registration numbers that are required for businesses. Afterwards, register your business with a business credit reporting agency like Dun & Bradstreet or Experian Business.
Remember to submit your monthly loan payments on time to build good credit. At the start, any delays or misses on your payments will also reflect on your personal credit report. Why is this? Since your personal credit history was used on opening up the loan, your credit report acts like a co-signer for your business. Therefore, it is crucial to keep up with your payments not only to build a good business credit but to protect your personal credit as well.
After some time of consistent payments, you should have already established your corporate credit. You may need to wait a year or more before you can completely separate your business credit report from your personal credit report.
New businesses are just like a teenager who’s just starting to build a credit history for himself. At first, a student may need a co-signer to get a loan but once approved, a student can slowly build his own credit history and after a while, he can easily apply for new credit without relying on other people’s credit. Clearly, if you plan to venture in business, preparing your personal credit is a must. Although a good personal credit history isn’t necessary required to start a business, it is definitely an advantage.
WADE
I found an account that was five years old on my credit report now the company is threatening legal action?
Matt T asked:
Upon reviewing my credit report today I came across an account that said I had a balance of $26. It is five years old. I contacted the collection agency today to pay the $26 now they are telling me the account balance is $650. What options do I have? They are threatening garnishment now that they have my updated personal information if I don’t pay the balance in full by Friday. I offered to pay this account in full over the next 45 days and I was told no, if you don’t pay before Friday we will take you to court. Do I have any options requesting copies of detailed statements so I can question the validity of this debt and if so what law is this covered under. Also will this postpone any legal action
DESMOND
Upon reviewing my credit report today I came across an account that said I had a balance of $26. It is five years old. I contacted the collection agency today to pay the $26 now they are telling me the account balance is $650. What options do I have? They are threatening garnishment now that they have my updated personal information if I don’t pay the balance in full by Friday. I offered to pay this account in full over the next 45 days and I was told no, if you don’t pay before Friday we will take you to court. Do I have any options requesting copies of detailed statements so I can question the validity of this debt and if so what law is this covered under. Also will this postpone any legal action
DESMOND
Keep an Eye on Your Credit Report
Peter Kenny asked:
Vital personal information such as where you live, your place of employment, your bill paying methods, and whether you’ve ever been arrested or declared bankruptcy is all contained within your credit report. This information is vital because it can affect som many areas of your life.
Your credit score is used by lenders to determine interest rates for mortgages and other loans. Employers are allowed to check credit reports before offering employment. And increasingly, auto insurance companies are checking credit reports before determining policy premiums. Even if you’ve never been in an accident or received a ticket, you may still find yourself paying higher rates for insurance.
There are three major credit reporting agencies that gather your financial information and provide your credit report to lenders, insurers, employers and other businesses that have a legal right to access your report. These three major companies are Experian, Equifax and Trans Union.
You should be aware that you are entitled, under federal law, to one free copy of your report from each of these agencies annually. Consumers should get a one copy from each agency because they all get their information from different sources at different times of the month and each report may differ slightly from the other.
It’s recommended to stagger your requests so that you receive the reports separately, one report approximately every four months.
Checking your credit reports regularly is clearly very important, given the information they contain. When looking over each report, make sure that all the information is accurate and up to date. You should also check for any charges or accounts you don’t recognize. This can be a sign of identity theft. If your personal information, such as your social security number or credit card number is stolen, any fradulent charges or accounts will appear on your credit report.
If any inaccurate information is found on your report, it should be reported immediately. The consumer reporting company should be notified in writing. Clearly outline the information you believe to be incorrect or inaccurate. Provide as much detail as possible to back up your statements. The reporting agency is required to investigate your claims. The company that provided the inaccurate information to the reporting agency will receive a copy of your dispute as well. If the information is determined to be inaccurate, the provider is required to notify all three reporting agencies of the correction.
In the event that the investigation does not find that the information is inaccurate, you may ask to have your statement attached to your credit report. This will allow anyone who looks over your report to see that you have disputed the item and the reasons for your dispute.
CRUZ
Vital personal information such as where you live, your place of employment, your bill paying methods, and whether you’ve ever been arrested or declared bankruptcy is all contained within your credit report. This information is vital because it can affect som many areas of your life.
Your credit score is used by lenders to determine interest rates for mortgages and other loans. Employers are allowed to check credit reports before offering employment. And increasingly, auto insurance companies are checking credit reports before determining policy premiums. Even if you’ve never been in an accident or received a ticket, you may still find yourself paying higher rates for insurance.
There are three major credit reporting agencies that gather your financial information and provide your credit report to lenders, insurers, employers and other businesses that have a legal right to access your report. These three major companies are Experian, Equifax and Trans Union.
You should be aware that you are entitled, under federal law, to one free copy of your report from each of these agencies annually. Consumers should get a one copy from each agency because they all get their information from different sources at different times of the month and each report may differ slightly from the other.
It’s recommended to stagger your requests so that you receive the reports separately, one report approximately every four months.
Checking your credit reports regularly is clearly very important, given the information they contain. When looking over each report, make sure that all the information is accurate and up to date. You should also check for any charges or accounts you don’t recognize. This can be a sign of identity theft. If your personal information, such as your social security number or credit card number is stolen, any fradulent charges or accounts will appear on your credit report.
If any inaccurate information is found on your report, it should be reported immediately. The consumer reporting company should be notified in writing. Clearly outline the information you believe to be incorrect or inaccurate. Provide as much detail as possible to back up your statements. The reporting agency is required to investigate your claims. The company that provided the inaccurate information to the reporting agency will receive a copy of your dispute as well. If the information is determined to be inaccurate, the provider is required to notify all three reporting agencies of the correction.
In the event that the investigation does not find that the information is inaccurate, you may ask to have your statement attached to your credit report. This will allow anyone who looks over your report to see that you have disputed the item and the reasons for your dispute.
CRUZ
Dose signing a personal guarantee for a business loan show up in personal credit report?
Absolute Knowledge asked:
the personal guarantee for a business loan shows up on personal credit report?
the personal guarantee for a business loan shows up on personal credit report?
i mean more then a credit check inquiry?
how much will that lower my credit score?
STAN
How can I get settled charge offs accounts off of my credit report?
Posted by admin in Personal Finance on October 14, 2009
Anthony M asked:
I have 2 credit cards that I had charged off about 6-7 years ago . I settled with a collection agency, not the full amount but about 70% of both the credit cards. They are scheduled to be removed from my credit in 2010. Is there a way to speed this process up? Could I pay the remainder of these credit cards off beyond the settled amount to get these removed? Also what is the easiest way to get credit? I currently make 125k plus a year. I can only seem to get credit cards with like a $500 limit. I believe it’s because of these accounts. Please let me know what is the easiest way to get get whether it be a credit card or personal or etc.
EARL
I have 2 credit cards that I had charged off about 6-7 years ago . I settled with a collection agency, not the full amount but about 70% of both the credit cards. They are scheduled to be removed from my credit in 2010. Is there a way to speed this process up? Could I pay the remainder of these credit cards off beyond the settled amount to get these removed? Also what is the easiest way to get credit? I currently make 125k plus a year. I can only seem to get credit cards with like a $500 limit. I believe it’s because of these accounts. Please let me know what is the easiest way to get get whether it be a credit card or personal or etc.
EARL