How Difficult To Get Credit Card.lines Of Credit For LLC???
I noticed a lot of posts on here about opening a credit line for your LLC. How difficult is this? What cards do you recomend (Store and regular cards please)?
Also I saw a couple of "quick fixes" posted on here about credit and even saw someone raised their credit score in 18mths. We are looking to purchase our first home in April 2004. His score is a 602, mine is a 580. Also debt to income ratio is high. This may be a stupid question, but I have no verifiable income. Would I still be able to get a CC? Any help would be great!
Anyone have any suggestions?
It might not take too long to get your credit scores up to 620. That seems to be almost a minimum requirement. I've been trying to get an equity loan for a house I already have with verifiable, stable income, and very low debt-income, and having a hard time. My score is 585. I decided to just give it another 6 months and try to get my score to 620. It's tough to wait though.
You're in the same boat we are; average to good with high debt ratio. You "HAVE TO" pay down your debt first. Then there are many "credit enhancement" programs out there that can raise your scores.
There are programs out there for you on mortgages. They are called no doc loans. They require little to no documentation, and no verifiable income.
I would suggest to raise your scores to pay down your debts.
Good luck.
Clint
What is a credit enhancement program?
Anyone?
KBragg
I havent heard of a credit enhancment program.
But getting back to theLLC: CC or a line of credit will be difficult on an LLC for you. You will still have to sign an agreement of garauntee and they will use your credit as a guideline until your business has a long enough credit history to support its own.
Paying down your debt, disputing or working out negative marks on your credit is the best way to increase your score. See the posts on this site for info or go to the local bookstore/library/used book store and get a guide on fixing your credit.
No Doc loans are a good vehicle for the self employed or those without verifiable income. You may consider becoming your own employee in an LLC or Corp.
If you are going to buy a home to live in yourself there are many programs offered to assist low credit score persons. HUD and FHA have a few really good ones for 1st time home buyers owner occupied. You may have to get a W-2 job or create one short term to qualify. It just depends on each situation.
What works for one will not necessarily work for you. You will have to approach lenders to see. Each lender has different criteria. If there is one W2 wage earner in the house hold that can be a great help.
Here are two ways you can easily get a credit card or line of credit for an LLC:
1. Be a personal guarantor on the account in the LLC's name. This assumes that you yourself will qualify. If not, then
2. Get a secured credit card/loan in the LLCs name.
The second one is also a great way to boost FICOs, as long as you use the credit properly and don't max it out on toys.
I hope this helps.
Quote:2. Get a secured credit card/loan in the LLCs name.
Any suggestions where I could obtain a secured credit card or loan for my LLC?
I'm a newbi too. However I do know that an LLC can obtain a "secured credit card" from CHASE BANK. Just visit their web site. Hope this helps.
[addsig]
My CPA told me to just to open the line of credit in my name and have the LLC pay me for it. As long as the things you buy, you sell back to the LLC, the LLC will reimburse you. Just draw up an expense report every month, document everything, and cut yourself a check for the amount.
I agree with nebulousd and Dreamin
Because anyone with $50 can set up a company, lenders will use your credit as a baseline for the company. Some require 2-3 years of establishment before they'll give a company a line of credit.
I have several cards that are in my name personally, that I use exclusivly for my LLC and I reimburse myself every time they're used.
I'd recommend fixing your personal credit, and looking for no doc loans as has been suggested.