Posts Tagged Social Security Number
Instant Credit Report
Paul Abbey asked:
Today actually getting hold of an instant credit report is much easier to achieve than it was a couple of years ago. As we are all beginning to realize being able to know where we stand in relation to how credit worthiness is extremely important to many of us today. Unfortunately if your credit history is poor or bad actually getting a loan or mortgage is very difficult to achieve.
But by getting hold of a copy of your credit report from any of the three major credit reporting agencies you will be able to see just where you stand when it comes to your credit worthiness. Today not only are there personal credit reports a person can obtain but there are also business credit reports available.
The main feature of any of these types of reports is that they contain data relating to either you or your business which the various credit reporting agencies have collected. It contains information relating to your financial position and will show if you have any problems relating to late payments or debts remaining unpaid.
But when it comes to you getting hold of a copy of your credit report you need to be very careful when you are trying to obtain it. This is because the report will contain very important and personal information about you including details of your name, your address, any contact numbers and your date of birth. Plus it will also contain your social security number all of which can be extremely beneficial to those people who like to use other people personal details to obtain funds and goods fraudulently.
Therefore if you choose to arrange to get hold of your credit report through one of the many online services that offer such a facility you need to make sure that it is a completely secure website. With a site such as Experian they have a padlock which they use to denote that this is a secure site and no one else will be able to gain access to your personal and financial information.
The biggest advantage to be had from getting hold of a copy of your instant credit report especially if you are considering taking out some form of credit (loan or mortgage) is you will be able to see whether you are likely to be declined or approved. Certainly by keeping abreast of your credit history and how you are being scored will ensure that when it does come time to take out any kind of loan or mortgage you will be able to do so more easily. Plus it allows you the chance to help to improve your credit history if at any time you find that your financial situation changes.
Minnie
Today actually getting hold of an instant credit report is much easier to achieve than it was a couple of years ago. As we are all beginning to realize being able to know where we stand in relation to how credit worthiness is extremely important to many of us today. Unfortunately if your credit history is poor or bad actually getting a loan or mortgage is very difficult to achieve.
But by getting hold of a copy of your credit report from any of the three major credit reporting agencies you will be able to see just where you stand when it comes to your credit worthiness. Today not only are there personal credit reports a person can obtain but there are also business credit reports available.
The main feature of any of these types of reports is that they contain data relating to either you or your business which the various credit reporting agencies have collected. It contains information relating to your financial position and will show if you have any problems relating to late payments or debts remaining unpaid.
But when it comes to you getting hold of a copy of your credit report you need to be very careful when you are trying to obtain it. This is because the report will contain very important and personal information about you including details of your name, your address, any contact numbers and your date of birth. Plus it will also contain your social security number all of which can be extremely beneficial to those people who like to use other people personal details to obtain funds and goods fraudulently.
Therefore if you choose to arrange to get hold of your credit report through one of the many online services that offer such a facility you need to make sure that it is a completely secure website. With a site such as Experian they have a padlock which they use to denote that this is a secure site and no one else will be able to gain access to your personal and financial information.
The biggest advantage to be had from getting hold of a copy of your instant credit report especially if you are considering taking out some form of credit (loan or mortgage) is you will be able to see whether you are likely to be declined or approved. Certainly by keeping abreast of your credit history and how you are being scored will ensure that when it does come time to take out any kind of loan or mortgage you will be able to do so more easily. Plus it allows you the chance to help to improve your credit history if at any time you find that your financial situation changes.
Minnie
Do Personal Credit Scores Affect Your Ability to Borrow Money?
Jack Igan asked:
You Should Know Something About Your Personal Credit Score and understand how a low personal score can affect your ability to secure a credit loan.
The prospect of applying for credit unnerves many people unnecessarily. Just be truthful when you answer the questions and you should not have any problems. In our everyday lives we fill out “applications” rather frequently. Aside from the more obscure employment application we fill out more familiar forms for people several times a week. At least I do.
I spend a lot of time on my computer and the Internet and I am always requesting information. Usually they require your name, password, username, but quite often they will ask for additional information such as your address, date of birth, telephone number. Try requesting a telephone or cable service or posting a certified letter with a return receipt without first filling out a form.
The day you are born you get a birth certificate and a social security number; both follow you for life. Everytime you do a search on Google a record is made and saved in a database somewhere in California. This record includes information from your computer so they can trace that search right back to you and your house or your office.
So, by the time you get around to requesting credit, you are already in one or more databases and your personal information is usually available to anyone who wants to buy it. Everyone already knows who you are. So breathe easy and just go ahead and fill in the form.
What does this have to do with credit scoring and how does it affect me? All I want to do is buy a new (fill in the blank).
Any company that is in the business of lending money to its customers has to know with reasonable certainty that the borrower will pay it back. Credit risk is the name of the game but managing that risk is a science and a skill combined.
If any company makes it a practice to take unnecessary risks by approving bad loans it increases the likelihood they will loose money. If that same company only extends credit to no-risk or prime risk borrowers they will ignore a sizeable group of hard working, honest, and responsible people who need credit. This group will fall somewhere between the high risk groups and the low risk groups but represents an enormous amount of profitable business. Not working with this ‘average’ group will cost any lender a sizeable amount of business income and opportunities for commensurate profits.
To help make it more profitable for companies to work with these borrowers a system of credit scoring was developed about twenty-five years ago in an attempt to forecast an assumed credit reliability model against which any single person applying for credit would be rated. Basically, whenever you buy anything on time, that purchase and your record of repayments is recorded in a database under your name and social security number. These records are constantly updated each time you make additional credit purchases or repayments on a loan.
Your personal credit score is a fluctuating number based on your individual record of prompt on-time payments to satisfy your loans, the number and amounts of loans you have made, the number and amounts of your current outstanding loans, and how quickly or how slowly you have lived up to your obligations to repay each of those loans, your total debt, how detailed you credit history is, information found in public records, and other factors.
Opening a new account or making a payment could operate to change your score. Your information is categorized, sorted, and analyzed against previously created statistical credit models. The result of all of these reports and comparisons represents a predictive analysis of your credit worthiness, or your personal credit score.
The major credit reporting agencies are using a recently consolidated scoring system called FICO, developed by The Fair Isaac Corporation. Experian uses a proprietary version of FICO called “The Vantage System”. Vantage has a scoring range from “501 to 990″. The older FICO system has a range of scoring from “300 to 850″. In a nutshell, the higher you’re score, the lower your risk, and all other things being equal. The problem here is that all things are not equal.
Interpretation of the results is pretty much up to the lender and it is hard to get a consensus on what is an average score. Not all credit companies interpret the available information in exactly the same manner. Suze Ormand, a CNBC financial guru and television personality quotes “703″ as an average FICO credit score. A personal loan credit score of 500 would probably place you at the lower end of the scale.
Your credit score affects every aspect of your financial life. Your ability to repay a loan and the probability or your repaying that loan are the highest considerations for any lender and he uses your personal credit score to determine your credit worthiness.
It is a paradox that the major credit reporting companies all use the same credit scoring models or a proprietary version but none are all that willing to tell you what threshold, or “point score” they use to deny you credit or what the “number” is that dictates the interest rate they will charge when you buy that new car, HDTV, or boat. For a more complete personal credit report that includes the actual credit score assigned you by that reporting company and a chart comparing you to other borrowers nationwide, you have to pay a fee, usually about $15.00.
There are many websites where you can get a free personal credit report. Just do an internet search using the phrase “free credit report”. I would suggest using one of the top credit agencies only because their reports may be more up to date. you should note however that the free credit report you will receive is not the same report you would get as a paying customer. Unless you have a serious problem with your credit it should be adequate for your needs. If you need a more detailed report you can always order one if you think it’s needed.
I have no interest or affiliation with any of them. They are listed here as a convenience to you, only. One caveat when visiting these websites; they all offer a free credit report but each site has enhanced additional services that do cost money.
Tyrone
You Should Know Something About Your Personal Credit Score and understand how a low personal score can affect your ability to secure a credit loan.
The prospect of applying for credit unnerves many people unnecessarily. Just be truthful when you answer the questions and you should not have any problems. In our everyday lives we fill out “applications” rather frequently. Aside from the more obscure employment application we fill out more familiar forms for people several times a week. At least I do.
I spend a lot of time on my computer and the Internet and I am always requesting information. Usually they require your name, password, username, but quite often they will ask for additional information such as your address, date of birth, telephone number. Try requesting a telephone or cable service or posting a certified letter with a return receipt without first filling out a form.
The day you are born you get a birth certificate and a social security number; both follow you for life. Everytime you do a search on Google a record is made and saved in a database somewhere in California. This record includes information from your computer so they can trace that search right back to you and your house or your office.
So, by the time you get around to requesting credit, you are already in one or more databases and your personal information is usually available to anyone who wants to buy it. Everyone already knows who you are. So breathe easy and just go ahead and fill in the form.
What does this have to do with credit scoring and how does it affect me? All I want to do is buy a new (fill in the blank).
Any company that is in the business of lending money to its customers has to know with reasonable certainty that the borrower will pay it back. Credit risk is the name of the game but managing that risk is a science and a skill combined.
If any company makes it a practice to take unnecessary risks by approving bad loans it increases the likelihood they will loose money. If that same company only extends credit to no-risk or prime risk borrowers they will ignore a sizeable group of hard working, honest, and responsible people who need credit. This group will fall somewhere between the high risk groups and the low risk groups but represents an enormous amount of profitable business. Not working with this ‘average’ group will cost any lender a sizeable amount of business income and opportunities for commensurate profits.
To help make it more profitable for companies to work with these borrowers a system of credit scoring was developed about twenty-five years ago in an attempt to forecast an assumed credit reliability model against which any single person applying for credit would be rated. Basically, whenever you buy anything on time, that purchase and your record of repayments is recorded in a database under your name and social security number. These records are constantly updated each time you make additional credit purchases or repayments on a loan.
Your personal credit score is a fluctuating number based on your individual record of prompt on-time payments to satisfy your loans, the number and amounts of loans you have made, the number and amounts of your current outstanding loans, and how quickly or how slowly you have lived up to your obligations to repay each of those loans, your total debt, how detailed you credit history is, information found in public records, and other factors.
Opening a new account or making a payment could operate to change your score. Your information is categorized, sorted, and analyzed against previously created statistical credit models. The result of all of these reports and comparisons represents a predictive analysis of your credit worthiness, or your personal credit score.
The major credit reporting agencies are using a recently consolidated scoring system called FICO, developed by The Fair Isaac Corporation. Experian uses a proprietary version of FICO called “The Vantage System”. Vantage has a scoring range from “501 to 990″. The older FICO system has a range of scoring from “300 to 850″. In a nutshell, the higher you’re score, the lower your risk, and all other things being equal. The problem here is that all things are not equal.
Interpretation of the results is pretty much up to the lender and it is hard to get a consensus on what is an average score. Not all credit companies interpret the available information in exactly the same manner. Suze Ormand, a CNBC financial guru and television personality quotes “703″ as an average FICO credit score. A personal loan credit score of 500 would probably place you at the lower end of the scale.
Your credit score affects every aspect of your financial life. Your ability to repay a loan and the probability or your repaying that loan are the highest considerations for any lender and he uses your personal credit score to determine your credit worthiness.
It is a paradox that the major credit reporting companies all use the same credit scoring models or a proprietary version but none are all that willing to tell you what threshold, or “point score” they use to deny you credit or what the “number” is that dictates the interest rate they will charge when you buy that new car, HDTV, or boat. For a more complete personal credit report that includes the actual credit score assigned you by that reporting company and a chart comparing you to other borrowers nationwide, you have to pay a fee, usually about $15.00.
There are many websites where you can get a free personal credit report. Just do an internet search using the phrase “free credit report”. I would suggest using one of the top credit agencies only because their reports may be more up to date. you should note however that the free credit report you will receive is not the same report you would get as a paying customer. Unless you have a serious problem with your credit it should be adequate for your needs. If you need a more detailed report you can always order one if you think it’s needed.
I have no interest or affiliation with any of them. They are listed here as a convenience to you, only. One caveat when visiting these websites; they all offer a free credit report but each site has enhanced additional services that do cost money.
Tyrone
how do i remove company debt from my credit report?
hiii_98 asked:
this collection agency has been calling me for years about a collection over a debt my company refused to pay. The amount was 500.00. The service was setup under my LLC company’s name and tax id. But now i see that my credit score and credit report has been affected by the collection agency. I have been ignoring them for hte past 6 years because the debt (which my company protested) should have been posted against my company’s credit score not my personal. Especially with this being a limited liability coorporation what can i do to remove or dispute the charge? I had FLAWLESS credit prior to this and i’m beyond pissed. I am the ceo of the company however my social security number was definately not used when the account was setup. Any advice on how i can proceed? Do i just pay the debt and suffer the horrible score? Or where they in the wrong to place this debt on an employee?? and do i have any recourse so that i can fix my credit score? ANY advice would be appreciated.
no one knows the answer? So any employee can get reported for his/her company’s actions?!?
Dana
this collection agency has been calling me for years about a collection over a debt my company refused to pay. The amount was 500.00. The service was setup under my LLC company’s name and tax id. But now i see that my credit score and credit report has been affected by the collection agency. I have been ignoring them for hte past 6 years because the debt (which my company protested) should have been posted against my company’s credit score not my personal. Especially with this being a limited liability coorporation what can i do to remove or dispute the charge? I had FLAWLESS credit prior to this and i’m beyond pissed. I am the ceo of the company however my social security number was definately not used when the account was setup. Any advice on how i can proceed? Do i just pay the debt and suffer the horrible score? Or where they in the wrong to place this debt on an employee?? and do i have any recourse so that i can fix my credit score? ANY advice would be appreciated.
no one knows the answer? So any employee can get reported for his/her company’s actions?!?
Dana
Establishing Business Credit – The Seven Steps to Success
Keith McAslan asked:
Business versus Personal Credit:
Personal – Personal credit building starts when an individual provides their social security number and applies for their first credit card. At that point a credit profile is started with the personal credit reporting agencies in the region of the country in which they reside. This profile, also commonly known as a “credit report”, is built with every credit inquiry, credit application submitted, change of address and job change. The information contained in the report is usually reported to the credit bureaus by those businesses issuing credit. Eventually, the credit report is viewed as a statement or report of an individual’s ability to pay back a debt, and is the key tool to access and grant credit.
Business – When a business issues another business credit, it is referred to as trade credit (credit from vendors or suppliers). Trade, or business, credit is the single largest source of lending in the world, but it typically not reported to the business credit agencies by most small businesses. The data regarding trade credit transactions must be submitted and then is accumulated by the business credit bureaus to create a business credit report using the business name, address and federal tax identification number (FIN). The credit bureaus use this data to generate a historical report about a company’s business credit transactions and payment history. Typically, the businesses issuing credit rely on the business credit report to determine the credit they are willing to grant and the amount of the credit limit. Additionally, many businesses (suppliers/vendors) will submit credit reference applications to the key suppliers of the business as a method to obtain payment patterns as part of the credit granting process.
The major credit bureaus are:
Dun & Bradstreet Business Credit USA Corporate Experian Small Business Equifax TransUnion (Personal)
The information provided to the business credit bureaus (primarily D&B) is sent in voluntarily, as businesses are not required to report. Therefore, credit bureaus may never receive any information about the business transactions on credit and a business could go for years accumulating business history without being reported to the credit bureaus and establishing a positive business history of sound credit practices.
Establishing Business Credit History:
Business credit scores range on a scale from 0 to 100 with 75 or more considered an excellent rating. Personal credit scores, on the other hand, range from 300 to 850 with a score of 680 or higher considered excellent. With today’s tighter credit scrutiny the higher the credit score, the more likely an individual or business is to obtain credit and at more favorable terms (interest rate and contract length).
While it is important to know that there are many factors http://www.myfico.com that affect a credit score; it’s based on more than just whether you pay your bills on time (still very important). The credit score will be affected by the amount of available credit you have on bank lines of credit and credit cards, the length of time you’ve had a credit profile, the number of inquiries made on your credit profile, paying the bills on time, bankruptcy, as well as other considerations.
The typical American consumer credit report receives two to three credit inquiries per year and usually has 11 credit obligations – typically broken down as 7 credit cards and 4 installment loans. Business owners are not your typical consumer, because they carry both personal and business credit. This typically doubles the number of inquiries made to their personal credit profile and the number of credit obligations they carry at any given time, all of which negatively impact the personal credit score. Additionally, because business inquiries and personal inquiries are not separated on the personal credit report, the personal credit scores are negatively impacted. As mentioned earlier, using the personal credit history to get credit for their business, businesses are not able to build their business history/score, all of which could help attain critical business credit in the future.
A critical mistake many business owners make is using their personal information to apply for business credit, leases and loans. This practice has the resultant impact of potentially lowering their personal credit score, while not building a business credit history and business credit score.
A key to establishing credit for the business and a profile and score is to find companies (UPS, FEDEX, etc.) or your key supplier and vendors that will grant credit for your business without using your personal credit information and then report the payment experiences to the business credit bureaus. By reporting the information to the proper credit bureaus, those companies will help the business establish a business credit profile and score.
The Seven Steps to Success:
1. Company Legal Structure – The business must be a legal entity unto itself in order to establish business credit. Therefore, it is recommended to form a corporation (C Corp) or LLC (discuss with your CPA the advantage/disadvantages of a C Corp versus LLC) as opposed to structuring your business as a sole proprietorship or partnership. Formation of a sole proprietorship or partnership, dictates that personal credit information could be included on the business credit report. Additionally, as a sole proprietor or partner in a partnership, you are personally liable for the debts of the business and all your personal assets are at risk in the event of litigation.
Corporations and LLC’s, on the other hand, provide the business owners liability protection, and can build a business credit profile that’s separate from the personal credit profile. Therefore, apply for credit under your business’s name and find businesses will to grant credit without a personal credit check or guarantee.
2. Register with Business Credit Agencies – The best known business credit bureau is Dun & Bradstreet. Dun & Bradstreet has a process on their web site to establish a D-U-N-S number (a specific 9 digit number related to your business) and instructions how to establish a business credit rating. It is strongly recommended that you contact D&B and follow their process to establish business credit. The following is from the D&B web site:
How do I get started with D&B? With our unsurpassed global data collection system, D&B continually gathers the data that initiates the creation of business credit profiles on new companies. Many kinds of activities can trigger a profile on a new company, such as incorporating your business, applying for a loan, getting a business telephone number, taking out a lease on office space – even just when another company seeks information from D&B about your business. Still, a new business may not have a complete business credit profile. Getting a D-U-N-S Number from D&B – the worldwide standard for business classification systems – is an essential part of helping you establish your business credit profile and will ensure that when a company looks you up in the D&B database they will find you. In some cases, a D&B D-U-N-S Number is so a requirement for doing business some entities, such as the US government.
You should make sure you have a D&B business credit profile if:
You are planning to obtain a business loan You need to purchase or lease equipment Your cash flow is tight You want to ensure you are getting a fair deal from lenders compared to your competition You want to pay net 30 days instead of COD (Cash On Delivery) You are paying interest at prime plus 1, or even higher You plan to do business with entities that require a D-U-N-S Number, e.g. the US Government
These issues and dozens other like them can be addressed by having a strong business credit profile. A good rating provides you with the financial freedom to take the steps you need to grow, and is a straightforward, unbiased method for other companies to assess your level of risk when considering taking you on as a creditor. A poor credit rating is a certain barrier to growth and success, preventing you from getting adequate funding on fair terms.
Communicating directly with D&B will help establish your business credit in less time. If you are a new company, D&B can help you build a complete business credit profile from the ground up; if you have been in operation for a while, you will want to improve and/or protect your business credit profile. Find out more about how to establish, monitor, improve, or protect your business credit.
3. Credit Market Requirements – Businesses must meet all the requirements of the credit market in order to have a higher probability of credit approval, as not being in compliance with the credit market can “send up signal flares” with both credit bureaus and potential grantors of credit.
Some of the “signal flares” include:
not having a business license, not being registered with the Secretary of State for a certificate of good standing, operating under your social security number rather than a FIN or EIN, not having a phone line (land line) that is listed in the phone directory in the exact business legal name, no web site, or not having a business email address (not AOL or gmail, but a specific URL for your company).
4. Small Business Credit Lines – Investigate and locate a minimum of five businesses (vendors/suppliers) willing to grant a small business credit without personal guarantees and will report the payment experiences to the business credit bureaus. This will assist your business to establish a credit report and build a financial credit foundation for the company. Find companies willing to grant credit that report to the credit bureaus such as marketingoncredit.com, UPS, FEDEX
5. Business Credit Cards – Obtain three business credit cards (Sam’s Club Discover Business card), that are not linked to you personally and that report the business credit to the reporting agencies. Then be sure to always pay your bills on time!
6. Financial Statements, Business Plans and Loan Packages – These documents are often required by many credit grantors as part of their loan application process. CxO To GO is a national professional services firm that has assisted many business with their financial statement preparation and business plans. Additionally, CxO To Go has packages such as PowerPlan and PowerPlan2 for business plans, PowerPuncher for executive summaries, CFOCast for financial projections and BankSell for bank proposals so lenders and bankers will take action. It is important to note that 61% of all businesses are turned down for a loan due to a poor loan package, however with BankSell the lender loan package gets results and moves the applicant to the top of the list for review and credit committee approval.
7. Debt management – Be a smart money manager and manage the debt levels to ensure they are not too burdensome and can be paid back with current cash flow. Do not incur debt that will over leverage the company and cause missed or late payments.
Jesus
Business versus Personal Credit:
Personal – Personal credit building starts when an individual provides their social security number and applies for their first credit card. At that point a credit profile is started with the personal credit reporting agencies in the region of the country in which they reside. This profile, also commonly known as a “credit report”, is built with every credit inquiry, credit application submitted, change of address and job change. The information contained in the report is usually reported to the credit bureaus by those businesses issuing credit. Eventually, the credit report is viewed as a statement or report of an individual’s ability to pay back a debt, and is the key tool to access and grant credit.
Business – When a business issues another business credit, it is referred to as trade credit (credit from vendors or suppliers). Trade, or business, credit is the single largest source of lending in the world, but it typically not reported to the business credit agencies by most small businesses. The data regarding trade credit transactions must be submitted and then is accumulated by the business credit bureaus to create a business credit report using the business name, address and federal tax identification number (FIN). The credit bureaus use this data to generate a historical report about a company’s business credit transactions and payment history. Typically, the businesses issuing credit rely on the business credit report to determine the credit they are willing to grant and the amount of the credit limit. Additionally, many businesses (suppliers/vendors) will submit credit reference applications to the key suppliers of the business as a method to obtain payment patterns as part of the credit granting process.
The major credit bureaus are:
Dun & Bradstreet Business Credit USA Corporate Experian Small Business Equifax TransUnion (Personal)
The information provided to the business credit bureaus (primarily D&B) is sent in voluntarily, as businesses are not required to report. Therefore, credit bureaus may never receive any information about the business transactions on credit and a business could go for years accumulating business history without being reported to the credit bureaus and establishing a positive business history of sound credit practices.
Establishing Business Credit History:
Business credit scores range on a scale from 0 to 100 with 75 or more considered an excellent rating. Personal credit scores, on the other hand, range from 300 to 850 with a score of 680 or higher considered excellent. With today’s tighter credit scrutiny the higher the credit score, the more likely an individual or business is to obtain credit and at more favorable terms (interest rate and contract length).
While it is important to know that there are many factors http://www.myfico.com that affect a credit score; it’s based on more than just whether you pay your bills on time (still very important). The credit score will be affected by the amount of available credit you have on bank lines of credit and credit cards, the length of time you’ve had a credit profile, the number of inquiries made on your credit profile, paying the bills on time, bankruptcy, as well as other considerations.
The typical American consumer credit report receives two to three credit inquiries per year and usually has 11 credit obligations – typically broken down as 7 credit cards and 4 installment loans. Business owners are not your typical consumer, because they carry both personal and business credit. This typically doubles the number of inquiries made to their personal credit profile and the number of credit obligations they carry at any given time, all of which negatively impact the personal credit score. Additionally, because business inquiries and personal inquiries are not separated on the personal credit report, the personal credit scores are negatively impacted. As mentioned earlier, using the personal credit history to get credit for their business, businesses are not able to build their business history/score, all of which could help attain critical business credit in the future.
A critical mistake many business owners make is using their personal information to apply for business credit, leases and loans. This practice has the resultant impact of potentially lowering their personal credit score, while not building a business credit history and business credit score.
A key to establishing credit for the business and a profile and score is to find companies (UPS, FEDEX, etc.) or your key supplier and vendors that will grant credit for your business without using your personal credit information and then report the payment experiences to the business credit bureaus. By reporting the information to the proper credit bureaus, those companies will help the business establish a business credit profile and score.
The Seven Steps to Success:
1. Company Legal Structure – The business must be a legal entity unto itself in order to establish business credit. Therefore, it is recommended to form a corporation (C Corp) or LLC (discuss with your CPA the advantage/disadvantages of a C Corp versus LLC) as opposed to structuring your business as a sole proprietorship or partnership. Formation of a sole proprietorship or partnership, dictates that personal credit information could be included on the business credit report. Additionally, as a sole proprietor or partner in a partnership, you are personally liable for the debts of the business and all your personal assets are at risk in the event of litigation.
Corporations and LLC’s, on the other hand, provide the business owners liability protection, and can build a business credit profile that’s separate from the personal credit profile. Therefore, apply for credit under your business’s name and find businesses will to grant credit without a personal credit check or guarantee.
2. Register with Business Credit Agencies – The best known business credit bureau is Dun & Bradstreet. Dun & Bradstreet has a process on their web site to establish a D-U-N-S number (a specific 9 digit number related to your business) and instructions how to establish a business credit rating. It is strongly recommended that you contact D&B and follow their process to establish business credit. The following is from the D&B web site:
How do I get started with D&B? With our unsurpassed global data collection system, D&B continually gathers the data that initiates the creation of business credit profiles on new companies. Many kinds of activities can trigger a profile on a new company, such as incorporating your business, applying for a loan, getting a business telephone number, taking out a lease on office space – even just when another company seeks information from D&B about your business. Still, a new business may not have a complete business credit profile. Getting a D-U-N-S Number from D&B – the worldwide standard for business classification systems – is an essential part of helping you establish your business credit profile and will ensure that when a company looks you up in the D&B database they will find you. In some cases, a D&B D-U-N-S Number is so a requirement for doing business some entities, such as the US government.
You should make sure you have a D&B business credit profile if:
You are planning to obtain a business loan You need to purchase or lease equipment Your cash flow is tight You want to ensure you are getting a fair deal from lenders compared to your competition You want to pay net 30 days instead of COD (Cash On Delivery) You are paying interest at prime plus 1, or even higher You plan to do business with entities that require a D-U-N-S Number, e.g. the US Government
These issues and dozens other like them can be addressed by having a strong business credit profile. A good rating provides you with the financial freedom to take the steps you need to grow, and is a straightforward, unbiased method for other companies to assess your level of risk when considering taking you on as a creditor. A poor credit rating is a certain barrier to growth and success, preventing you from getting adequate funding on fair terms.
Communicating directly with D&B will help establish your business credit in less time. If you are a new company, D&B can help you build a complete business credit profile from the ground up; if you have been in operation for a while, you will want to improve and/or protect your business credit profile. Find out more about how to establish, monitor, improve, or protect your business credit.
3. Credit Market Requirements – Businesses must meet all the requirements of the credit market in order to have a higher probability of credit approval, as not being in compliance with the credit market can “send up signal flares” with both credit bureaus and potential grantors of credit.
Some of the “signal flares” include:
not having a business license, not being registered with the Secretary of State for a certificate of good standing, operating under your social security number rather than a FIN or EIN, not having a phone line (land line) that is listed in the phone directory in the exact business legal name, no web site, or not having a business email address (not AOL or gmail, but a specific URL for your company).
4. Small Business Credit Lines – Investigate and locate a minimum of five businesses (vendors/suppliers) willing to grant a small business credit without personal guarantees and will report the payment experiences to the business credit bureaus. This will assist your business to establish a credit report and build a financial credit foundation for the company. Find companies willing to grant credit that report to the credit bureaus such as marketingoncredit.com, UPS, FEDEX
5. Business Credit Cards – Obtain three business credit cards (Sam’s Club Discover Business card), that are not linked to you personally and that report the business credit to the reporting agencies. Then be sure to always pay your bills on time!
6. Financial Statements, Business Plans and Loan Packages – These documents are often required by many credit grantors as part of their loan application process. CxO To GO is a national professional services firm that has assisted many business with their financial statement preparation and business plans. Additionally, CxO To Go has packages such as PowerPlan and PowerPlan2 for business plans, PowerPuncher for executive summaries, CFOCast for financial projections and BankSell for bank proposals so lenders and bankers will take action. It is important to note that 61% of all businesses are turned down for a loan due to a poor loan package, however with BankSell the lender loan package gets results and moves the applicant to the top of the list for review and credit committee approval.
7. Debt management – Be a smart money manager and manage the debt levels to ensure they are not too burdensome and can be paid back with current cash flow. Do not incur debt that will over leverage the company and cause missed or late payments.
Jesus
Credit Report – How to Correct Errors and Improve Your Credit Score
Peter Fisher asked:
The people who compile your personal credit report are human just like you and me and they can make mistakes while compiling your reports from the various sources they use.
So to correct errors and improve your credit score, requesting a copy of your report frequently can be very important. Although this will cost a small fee, it will allow you to know what they have compiled about you. If you discover unfavorable information, you can ask for corrections before they start disseminating inaccurate information about you.
When you get a copy of your personal credit report to determine the status of your credit file, study the information carefully and attempt to remove all incorrect information in it. As all your credit history may not be contained in one file from one firm, if possible get the files from other firms too. Some information may be duplicated, or not included at all in the other file.
To correct errors and improve your credit score, you need to check your full name, social security number, current and previous addresses, spouse’s name, and date of birth and make sure that they are all correct because they are some of the points used in identifying you. Also, make sure that any merchants’ names, credit account numbers, date opened, date closed, high credit limit, highest amount of credit used, and repayment history are correct, current and accurate.
If after studying the file carefully you spot any errors, write out the exact error and the way you think it should be listed. You will find a space on the right-hand side of your report where you may challenge any item in your report that you feel is wrong or incorrect. You will have to attach photocopies along with pertinent information as proof of your claim and send it to bureau or credit reference agency by mail. When they get your message they will investigate and send you the results of their findings. Be patient, because it may take the agency some time to complete their investigation.
The fact that not just one agency may compile information about you may make it almost impossible for you not to encounter problems in future. When you apply for credit in a bank, in stores or any with a lending company you may be turned down. This does not mean the agency you filed error corrections with haven’t made the changes, it’s more likely that the bank or store you are trying to deal with have another report from a different agency about you.
So anytime that you are denied credit, you have the right to know why you were turned down! If the bank or stores used a credit report agency, they must provide you with the name and address of the agency that supplied them with the report.
Once you have the contact information of the agency involved, you should make an immediate effort to contact the credit agency, so that you can review your credit report, find out any information that is causing you to be denied credit, and make corrections if you have enough evidence to back up your claims. Otherwise how can you correct errors and improve your credit score?
Allen
The people who compile your personal credit report are human just like you and me and they can make mistakes while compiling your reports from the various sources they use.
So to correct errors and improve your credit score, requesting a copy of your report frequently can be very important. Although this will cost a small fee, it will allow you to know what they have compiled about you. If you discover unfavorable information, you can ask for corrections before they start disseminating inaccurate information about you.
When you get a copy of your personal credit report to determine the status of your credit file, study the information carefully and attempt to remove all incorrect information in it. As all your credit history may not be contained in one file from one firm, if possible get the files from other firms too. Some information may be duplicated, or not included at all in the other file.
To correct errors and improve your credit score, you need to check your full name, social security number, current and previous addresses, spouse’s name, and date of birth and make sure that they are all correct because they are some of the points used in identifying you. Also, make sure that any merchants’ names, credit account numbers, date opened, date closed, high credit limit, highest amount of credit used, and repayment history are correct, current and accurate.
If after studying the file carefully you spot any errors, write out the exact error and the way you think it should be listed. You will find a space on the right-hand side of your report where you may challenge any item in your report that you feel is wrong or incorrect. You will have to attach photocopies along with pertinent information as proof of your claim and send it to bureau or credit reference agency by mail. When they get your message they will investigate and send you the results of their findings. Be patient, because it may take the agency some time to complete their investigation.
The fact that not just one agency may compile information about you may make it almost impossible for you not to encounter problems in future. When you apply for credit in a bank, in stores or any with a lending company you may be turned down. This does not mean the agency you filed error corrections with haven’t made the changes, it’s more likely that the bank or store you are trying to deal with have another report from a different agency about you.
So anytime that you are denied credit, you have the right to know why you were turned down! If the bank or stores used a credit report agency, they must provide you with the name and address of the agency that supplied them with the report.
Once you have the contact information of the agency involved, you should make an immediate effort to contact the credit agency, so that you can review your credit report, find out any information that is causing you to be denied credit, and make corrections if you have enough evidence to back up your claims. Otherwise how can you correct errors and improve your credit score?
Allen
Identity Theft – Guard Your Children’s Social Security Numbers
Charles Essmeier asked:
Identity theft is a growing concern among Americans, and rates among the top five complaints received by states’ Attorney General’s offices. A stolen identity can lead to tens of thousands of dollars worth of debt in the victim’s name and it can take years to completely undo the damage done to the victim’s credit report. Identity thieves can successfully commit crime with as little as a driver’s license number or credit card number, but the ideal target of such criminals is the Social Security number. With that number in hand, the identity thief can pass themselves off as the victim and open credit card accounts, bank accounts, and even obtain home equity loans. As more Americans become aware of the problems posed by identity theft, consumers are doing more to protect themselves. This has inspired thieves to look to a new source of identities to steal, and they have found one. They are now stealing the identities of children.
Established in the 1930′s the Social Security Administration was set up to provide benefits for retired Americans. Taxes are withdrawn from the paychecks of eligible workers, and each worker is issued a Social Security number in order to keep track of his or her benefits. Over the years, and despite the intentions of those who created the system, the Social Security number has become a de facto national identity number. It is difficult, if not impossible, to engage in most financial transactions without providing that number to the other party in the transaction. In fact, the number itself has become as important as the name of the person who holds it. Over the years, criminals have discovered that by obtaining the Social Security number of someone else, all kinds of illegal activities are possible, including obtaining loans in the names of the owner’s of the stolen numbers.
With more people now aware of the potential of identity theft, consumers are more carefully protecting their personal information. As a result, thieves are now targeting the Social Security numbers of children. A law passed in 1989 requires parents of newborn infants to register for a Social Security number for their child. That child will probably not need that number until he or she is a teenager, when the number might be necessary to obtain a driver’s license, open a bank account, or get a job. In the meantime, the number is not only unused, but the theft of it may go unnoticed. Thieves who obtain a Social Security number of a child know that they can probably use it for a decade without being caught.
How can you protect your child from identity theft? Treat your child’s personal information as if it were your own, and guard it carefully. Don’t give out the Social Security number of your child unless it is absolutely necessary, and if you aren’t sure if it’s necessary, ask. Some doctors and hospitals, for instance, request the number as a matter of course, but they may not actually need it.
Check to see if your child has a credit report. You can obtain one for free at the free credit report Website. Your child, if not working, shouldn’t have a credit report, so if the credit bureaus have one on file, you may have a problem. A child’s personal information is as useful to an identity thief as that of an adult. Guard yours and your children’s identification carefully.
Todd
Identity theft is a growing concern among Americans, and rates among the top five complaints received by states’ Attorney General’s offices. A stolen identity can lead to tens of thousands of dollars worth of debt in the victim’s name and it can take years to completely undo the damage done to the victim’s credit report. Identity thieves can successfully commit crime with as little as a driver’s license number or credit card number, but the ideal target of such criminals is the Social Security number. With that number in hand, the identity thief can pass themselves off as the victim and open credit card accounts, bank accounts, and even obtain home equity loans. As more Americans become aware of the problems posed by identity theft, consumers are doing more to protect themselves. This has inspired thieves to look to a new source of identities to steal, and they have found one. They are now stealing the identities of children.
Established in the 1930′s the Social Security Administration was set up to provide benefits for retired Americans. Taxes are withdrawn from the paychecks of eligible workers, and each worker is issued a Social Security number in order to keep track of his or her benefits. Over the years, and despite the intentions of those who created the system, the Social Security number has become a de facto national identity number. It is difficult, if not impossible, to engage in most financial transactions without providing that number to the other party in the transaction. In fact, the number itself has become as important as the name of the person who holds it. Over the years, criminals have discovered that by obtaining the Social Security number of someone else, all kinds of illegal activities are possible, including obtaining loans in the names of the owner’s of the stolen numbers.
With more people now aware of the potential of identity theft, consumers are more carefully protecting their personal information. As a result, thieves are now targeting the Social Security numbers of children. A law passed in 1989 requires parents of newborn infants to register for a Social Security number for their child. That child will probably not need that number until he or she is a teenager, when the number might be necessary to obtain a driver’s license, open a bank account, or get a job. In the meantime, the number is not only unused, but the theft of it may go unnoticed. Thieves who obtain a Social Security number of a child know that they can probably use it for a decade without being caught.
How can you protect your child from identity theft? Treat your child’s personal information as if it were your own, and guard it carefully. Don’t give out the Social Security number of your child unless it is absolutely necessary, and if you aren’t sure if it’s necessary, ask. Some doctors and hospitals, for instance, request the number as a matter of course, but they may not actually need it.
Check to see if your child has a credit report. You can obtain one for free at the free credit report Website. Your child, if not working, shouldn’t have a credit report, so if the credit bureaus have one on file, you may have a problem. A child’s personal information is as useful to an identity thief as that of an adult. Guard yours and your children’s identification carefully.
Todd