SpoonyNix Posted June 26, 2003 Report Share Posted June 26, 2003 Here's the deal. My business partner and I want to go in and get a large bank line of credit. Based on our conversations with our banker, and our business' performance, we think we could get $500,000. Thing is, I just don't have much in the way of tradelines. I have a Visa and MC (with an $85 balance on $2500 limit) that are just over 2 years old. That's it. I know that to have a score in the 700's I should have a couple of installment loans, but if I get new lines (a small line of credit, or an auto loan) my scores will go down, and I probably wouldn't see 700 for several months. We want to get the LOC ASAP.Also, I'm a major tightwad and would be upset if I financed a new truck when my old one runs just fine. I already have a house, but the loan isn't in my name, just the deed. I'll probably refi pretty soon, but I'll wait til I get the big bank LOC. Any suggestions for getting tradelines w/o dropping my scores? I don't think additional credit cards would help much, or would they? How much could scores drop anyway, if I got a $5000 bank loan? How long would the score stay down? I would have done this sooner, but I just reached that 7 yr period when old stuff drops off. Now my report is just plain boring. My business partner has an aged car loan with just $2000 left on it; I wouldn't mind co-signing on it (and a couple of other of his aged loans) if the lines would appear on my report the way they do on his.Another thing, what kinds of companies can report account info to a CRA? I ask because there's a local lending company here that has made about 7 mortgage loans to me in the past year totaling $320,000. I have paid back 5 of those and am timely on the remaining 2. The lender would probably report this to the CRA's. What kinds of companies can get tradelines added to CR's? Link to comment Share on other sites More sharing options...
sisflomi Posted June 26, 2003 Report Share Posted June 26, 2003 Your best bet being your a "tight wad" as you say, would prob be to open a secured loan. You take your money to your bank, ask for a secured loan on the amount you have. Take the money from the first bank, do the same with a second and then a third bank. Pay each loan back about 3/4 of what you "borrowed" before the first payment is due. Pay the rest off within a 3-6 month period. It will drop your score at first, but give it a month or two of reporting and it will bring it back and give you about 20 points give or take. Just make sure they report it to all 3 cras. Make sure they don't pull inqs when doing secured loans either. I use the online banking and was able to transpher money to the loan 24 hrs a day. Make sure there is no fee for early payment either. My score went from 555 to 604 doing this with one bank. It only reported to two cras though, so I am going to find banks that report to all 3. You might want to ask a parent, or friend, partner, someone you trust to add you as an authorized user to an old good standing credit card. Again, make sure they report to all 3 cras. Just thought of something too, don't business loans actually pull business reports? Link to comment Share on other sites More sharing options...
Anonymous Posted June 26, 2003 Report Share Posted June 26, 2003 See this is weird. I hear that new credit lowers your score... but then:one of equifax's suggestions for me is to open new credit!!! I only have 2 student loans, and until recently, 1 credit card. (so like yourself i don't have much credit either) i have 2 collections i am working on and my scores are670655679I just got an orchard bank mastercard and my score went up 10 points. I think that is pretty substantial. I am not advising you to open up more credit cards, but sort of eluding to the mystifying phenomenon that is 'credit scoring'... i will keep you posted on my consolidation, which should be going into effect next month...good luck!!! Link to comment Share on other sites More sharing options...
SpoonyNix Posted June 26, 2003 Author Report Share Posted June 26, 2003 So you think if I do the secured bank loan thing at a couple of banks my score would drop, but within within 2 months it will be up 20 points, give or take? Actually, besides the two CC's, I do have two old accounts listed under my TU. An AMEX I closed 10 yrs ago, and a $2500 secured bank loan that I think I closed 8 yrs ago. Neither had lates. You think adding my name as just an authorized user on good accounts would help? I'll ask a couple of my biz partner's credit card cos how they will report if I sign on as an authorized user or co-signer/user.As for the business reports, though our business is conducted through a corporation it doesn't have much credit. The only tradeline in the business name is a $5000 Lowe's account. We would be required to personally guarantee any loans made to the corporation, at least for the next couple of years. Link to comment Share on other sites More sharing options...
kb9tbq Posted June 26, 2003 Report Share Posted June 26, 2003 Don't co-sign or go joint account to accomplish this, only use authorized user accounts, the difference is that AU accounts you are not responsible to pay the debt should something later go wrong with the account holder failing to pay on the account. Link to comment Share on other sites More sharing options...
edubb007 Posted June 26, 2003 Report Share Posted June 26, 2003 KB's right again... Have a business partner pull his credit for free at the CRA's websites. Find an aged revolving account that reports to 2 or 3 of the CRa's and become an authorized user. MAKE SURE... They report you as well! Or it's pointless. The bank will tell you and make you fill out a form or something. I just became an AU on my GF's aged account. I am steady waiting the reporting. Rumor has it 20-30 points depending on limit/balance/age! Good luck... Link to comment Share on other sites More sharing options...
SpoonyNix Posted June 26, 2003 Author Report Share Posted June 26, 2003 edubb, that would be great! what account(s) did you get added on to? Link to comment Share on other sites More sharing options...
laura66 Posted June 26, 2003 Report Share Posted June 26, 2003 Spoony, my husband was in the same boat- home loan not in his name (although title was) and not much credit otherwise, only because he despises credit cards and always pays cash. He literally DID NOT have a credit score. We refinanced our house, and after that aged for 6 months, his score came up to 660. We took out a LOC on the house, and his score jumped to 755. Is this an option for you? He has a pretty successful business himself, and it seems vendors and banks pull his credit under his SS#, although none of the business cards or LOC ever show on his report. I know that you definitely CANNOT get a home equity LOC until the first mortgage is in your name, though. Good luck! Oh, and when we applied for the home equity LOC, our scores both dropped by 6 points with the inquiry until the TL posted; that's when we both saw the major increases. Link to comment Share on other sites More sharing options...
SpoonyNix Posted June 26, 2003 Author Report Share Posted June 26, 2003 laura, I can get pretty good terms right now on a refi but was gonna wait until I got the LOC. but on second thought, it might actually look good on my report (to the bank i want to get my big LOC through) if I have a home loan, even if it does drop me a few points. and by the end of the yr my score will probably be much higher, so i can have them reconsider the terms on the LOC. after thinking about it, the Lowe's business line we have doesn't show up on our reports, though they did pull. it sounds like the score increases come pretty soon after the TL's are established, huh? Link to comment Share on other sites More sharing options...
matt2402 Posted June 26, 2003 Report Share Posted June 26, 2003 I was just added to my wifes credit card (3.5 years old 17k limit, $700 balance) my fico jumped 21 points. I think it also depends on your mix of credit...add the things you'll need to get that good mix. AU is a great way to do that... Link to comment Share on other sites More sharing options...
jackiew Posted June 26, 2003 Report Share Posted June 26, 2003 MY DH has a business Lowe's cc which doesn't report to the 3 CRAs, but to D&B. We have checked into getting a LOC for his business and was told that most business loans, CC, etc., will pull a CR on the responsible party. Especially if the business has only been around for a few years. I am the purchasing manager of a company that has been in business for 30 years, has $30M of sales and 136 employees. When we leased a BMW they wanted the SS # of the owner. However, I do know that while they pull the CR, they will usually just report it to your D&B, not both. I tried to have Lowes report to his CRs, but they refused and said that they report business accounts to D&B, not personal CRs. Link to comment Share on other sites More sharing options...
edubb007 Posted June 26, 2003 Report Share Posted June 26, 2003 Spoony... It is a Revolving w/ $138 balance and CL of $6000 from 97. I have'nt seen it reported on my CR yet but I have read about others ranging from 20-30 point jumps. Hope it works out for you!EDubb007 #) Link to comment Share on other sites More sharing options...
laura66 Posted June 26, 2003 Report Share Posted June 26, 2003 Spoony, what kind of business are you in? Link to comment Share on other sites More sharing options...
SpoonyNix Posted June 27, 2003 Author Report Share Posted June 27, 2003 laura, i buy houses, fix them up, and sell them. also have a remodeling company that works only on our houses. Link to comment Share on other sites More sharing options...
Recommended Posts