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personal/business credit


melisadawn
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Some of you may have read my :cry: story in another post about the truck I almost had. Well now I have a new question. This is also referring kind of to my 696 post.

Fiance called his bank and asked a few questions. He is going to try for a 10k business loan. He is going to put the semi he owns on the road. We did not do this sooner as we did not have the funds for plates ect. At first he told the lady 3500$ but I told him if he is going to try then go for 10k to have $$$ for repairs. The bank told him if this loan is approved (told him with the info he gave that they see no problem with it going through. But the way he talks he prob never mentioned no credit going right now) If it goes through he has to open a business account that the 10k goes to. no problem there. His checks have to be direct deposited to his business account not personnal account. no problem again. Direct debit for payments. EWWWWW They will automatically tranfer so much from each check to his personnal account. no problem. BUT a 50$ fee if he pays off early???? Anyone here of this? I never have but if paid off early they would be losing interest. Oh but to get to my real question....

If this is a business loan how will it show on his CR? Will it go towards his personal report???

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This is hard to say, when people are individual owners then yes a lot of times, I see business debt reported on the personal credit report.

Sometimes it is just posted to his business credit report.

Also there is the 3rd factor as to if the bank reports business debt at. all :roll:

Hard to say for sure.

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Any transaction will go on his personal credit report if he is a sole proprietor of the business. He will then also be personally liable for anything that may arise (ie: legal issues). If he incorporates, and operates under a DBA, he is afforded some protections under the articles, and any transactions will be done in the business name - in which case they will show up in a D&B (Dunn & Bradstreet) which is nothing more than the CRA for businesses.

He can try to obtain the loan through the DBA and given the lack of credit history, will probably have to sign a personal guarantee and/or put something up as collateral. As far as early-term fees, a lot of business loans are set this way to ensure the bank receives the fullest interest due. Given the deductions allowed a business owner, this is never really an issue.

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As I just replied in my other post his score is dropping from inq. He was 696. His business is he owns his truck and has a company leasing him on. however it goes. But we were hoping somehow to establis credit for him. we do not need cc. and the loan would be handy. something we need.

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My husband is a sole proprietor, and NONE of his business credit lines show up on his personal credit report, including some credit cards through Wells Fargo and other large institutions. We have tried without success to get some of these tradelines on his personal credit reports, but without luck. So personally, I would be very surprised if it shows up on his personal report.

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Maybe there's an organization or finance company that specifically helps independent OTR operators like your fiancé set themselves up. Maybe an online search would yield something????

If your fiancé is looking to rebuild his personal credit, he can start with a secured line of credit.

Sisflomi is the resident expert on that. Here’s the link:

http://debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=102&highlight=

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My husband is a sole proprietor, and NONE of his business credit lines show up on his personal credit report, including some credit cards through Wells Fargo and other large institutions. We have tried without success to get some of these tradelines on his personal credit reports, but without luck. So personally, I would be very surprised if it shows up on his personal report.

SP owners are under a double whammy. None of the good tradelines will ever show up on their personal reports, but all the negative ones will. It's a pretty bad go round for SP's.

The BEST way to set up an account to keep it separate from your personal account with regards to negative tradelines is to set up an offshore LLP/LLC(Burma and Belize are great for this), then surround that company in a series of charitable remainder trusts, brass plate bank creditors, etc. etc. etc.

It's sorta complicated though.. you'd have to read a book on it to really understand it.

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My fiance drives a company truck. His company said if he gets plates insurance ect... he can drive his truck for them. So basically they would be leasing on his truck. his check would be from this company but with his own truck he has more authority to say no to a load he does not want. I do not now much on this.

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SP owners are under a double whammy. None of the good tradelines will ever show up on their personal reports, but all the negative ones will. It's a pretty bad go round for SP's.

From my experience, this doesn't only apply to SPs. If you open a business account (for small businesses, usually, but it doesn't matter the type of the business) and you agree to be personally liable for the account (most CC companies require that someone signs a personal guarantee for small businesses), then there is a possibility that negative tradelines will show up on your personal CR. It really depends on the OC, some will report, and some won't. But Xan is correct in that none of the good tradelines will ever show.

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SP owners are under a double whammy. None of the good tradelines will ever show up on their personal reports, but all the negative ones will. It's a pretty bad go round for SP's.

From my experience, this doesn't only apply to SPs. If you open a business account (for small businesses, usually, but it doesn't matter the type of the business) and you agree to be personally liable for the account (most CC companies require that someone signs a personal guarantee for small businesses), then there is a possibility that negative tradelines will show up on your personal CR. It really depends on the OC, some will report, and some won't. But Xan is correct in that none of the good tradelines will ever show.

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I've found that once you establish one GOOD tradeline on the business, that lenders no longer require a personal guarantor to grant a credit line.. the trick is getting that first good one. Personally, I've always found the "open TWO businesses, and have one give a loan to the other one, and then report the loan, thusly giving credit to the first one" to be the best way to accomplish that.. but it's a pain in the rear end.

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