How Do I Go About Establishing A Decent Line Of Credit?

I know of some who have sizable lines of credit. What steps would one take to make that happen?

Comments(4)

  • InActive_Account27th February, 2005

    Become very credit worthy.

  • InActive_Account27th February, 2005

    That may sound sarcastic, but it is simplistic and true in every sense.

    Businesses have lines of credit that are secured by either personal credit of the owners, or the businesses assets and potential to repay.

    The same thing will apply to you. Build equity in properties to borrow against, build equity in your business to borrow against, build equity in your personal assets to borrow against.

  • NC_Yank27th February, 2005

    Look at establishing a relationship with your lenders as well.
    Both my traditional and non traditional lenders know ME.

    They know how I run my business, they know how dependable I am and how unfront I am about things.

    When a lender feels comfortable with you then that in itself speaks volumes.

    You may have to start off with a small loan.......but the timeliness in which you pay it back will help determine how much more they can trust you with.

    It is also important to build up you credit scores. Low credit score will yield a high rate of interest.............high credit scores will yield a low rate of interest.......including no documentation (no-doc) loans.

    99% of my loans are no-docs..........they are just going by my credit history and score.

    Bottom line - you have to show them how responsible you are with THEIR money.

    Oh yeah,....... one last thing.............if you do have a problem with paying a debt...............the worst thing to do is to do nothing.
    A creditor will work with you as long as your honest and forthright...........but if you play the stall and ignore game with them...........they will write you off in a heart beat and you can watch your credit go down the drain.

    NC_Yank
    [ Edited by NC_Yank on Date 02/27/2005 ]

  • NYCinvestor28th February, 2005

    I am sure you can get a line of credit ...

    Edited for trying to hustle the board.
    John (LV)[ Edited by jfmlv1950 on Date 03/02/2005 ]

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