Credit Problems...Why not form Entity and use tax ID?
Just a thought:-?....but if you have bad credit wouldn't it be easier to create an entity (LLC, Corp, etc) and establish credit through your newly formed company with a tax ID? This seems like it would solve the problem of credit issues right? Any responses would be greatly appreciated and thanks in advance TCI family!!!
[addsig]
That would be great, except it considered illegal, read the ein form, it says it is not to be used in place of your social security #. Also, lenders on residential property to people, corporate loans are structured different, and in the end for the higher LTV someone from the corporation has to sign personal guarantee.
Hey Vincenth,
Thanks for your reply. Just to clear things up I didn't mean personally using the tax ID as a SSN but actually purchase homes through your company using it's tax ID since it is considered an entity this way if you do have bad credit you don't have to worry about being denied since your company is making the purchase and not you.
PlayboiSlim,
Yes you can use a corparate name to obtain a loan. However if you do want the lender to check your credit you will need to put down 30 to 40%.
Thanks LACashMan!!!