**BIZ CREDIT** Business Credit Building... The Mother Thread

[BizCredit]

Recap: I opened my biz (C corporation) in 2003.

 

Opened a Biz Phone line (more expensive then a personal line)

 

Used a Different Adress (not a home based biz)

 

Paid $400 or so to DnB (www.dnb.com) for CreditBuilder

added 3 historical vendors to my profile

 

1) furniture store where I bought my desk and chair and filing cabinet

2) The Company I buy Toner from for my printer

3) another vendor, I dont recall (the comapny that designed my logo and stationary?)

 

waited until I got my first phone bill for the corp.

 

Applied at www.staples.com for a biz account, faxed in the printed application with a copy of my phone bill.

 

Approved $750.

 

waited 2 weeks

 

Applied for a cellphone under the business (T-Mobile)

 

approved for 20 lines max. (i wanted one :oops: ) :wink:

 

waited for the first bill to arrive, paid it.

 

Called 800-917-DELL for Dell (www.dell.com) small biz division.

aked the rep about what programs they offer, explained that I have a business that is on DnB, but my personal credit is low FICO because of high balances, etc.

 

He told me "well, sir, all I need to tell you if you are approved is your name, biz name, and biz phone".

 

Got INSTANT APPROVAL for $10,000 (CIT) long term finance.

 

Bought two computers.

 

No SS# or PG was required.

 

Got approval, Some components arrived already, laptop already being delivered tomorrow (if someone is there to accept the delivery). I check the status on www.Dell.com, so I know that the stuff was already sent out.

 

after several "almosts", got the nerver to apply for home depot card based on the biz (No personal info...) recieved 7-10 day screen.

 

Called two days later... APPROVED for $3000+!

 

tried to get an increase on the spot, was transferred to a senior rep, who said that they count not increase the amount now, but would first need to see a 60-90 day pay history, and I could try again at that time.

 

RAN to home depot, got a tempory pass (so i could FEEL the approval :shock: )..... today I spend $2000 there. (now I can finish the apartment rehab, rent them out, and start seeing some money!)

 

I am not positive who issues the Home Depot Commercial Card (Citi USA? Monogram? GE Capital?) it seems that different bank names come up on the website, app, and temporary pass.

 

I'd be happy to share my limited knoweledge with anyone who needs help in this area.

to Reiterate: All the above is WITHOUT a PG, on a NEW Corp.

[Gib]

WTG. Great way to get things going. I always thought it would take longer to build business credit. Hmmmm, now where did I put those articles of incorporation?

 

Gib

[DISPUTER]

I have goosebumps. Good post dude. Thanks for the info.

[DISPUTER]

Do you think it has to be a C Corp? Would an LLC work as well?

[hydranine]

Congrats on all the business lines, it is good to hear you can get all that without a PG!

[DISPUTER]

bump

[pdowning]

Bump..

 

Has anyone tried leasing a car, or retail space with this type of young company. I know my business account is with Bank One and have got chocolate out of them for two years.

[DISPUTER]

BUMP again...where are you BHMH?

[pittsburghkid]

Great post BHMH, thanks.

 

Big Congrats

 

I've been trying to get this kind of info someone who has started

a new corporation!! :shock:

 

Had 4 financial goals for the year:

1. Get lousy personal fico score over 600.......check

2. Erase all debt, not including student loans...check

3. Have emergency stash of $10000 under the bed...check

4. Establish Corp./LLC with biz credit, no personal guarantee........

 

NOW I'M PUMPED FOR #4!!!!!

 

I'd love to get any additional info you have in this area, BHMH.

 

Like DISPUTER, I'm also wondering if this works with LLC????

[pdiack]

I have an LLC and got the staples card and a cell phone without PG. In addition, I've got a car lease (but with a PG) and a Dell lease (that took a PG as well). So, I would assume it works with a LLC, just not a sole prop.

 

I'm really interested in hearing other success stories in this area, like PittsburghKid, this is my number 1 goal right now - I paid for the DNB credit builder service - but only got 1 creditor to report - any ideas how to get to 5 or more? So far, Dell and Staples haven't reported (though I just paid them the 1st pmt).

[bee bee]

Had 4 financial goals for the year:

1. Get lousy personal fico score over 600.......check

2. Erase all debt, not including student loans...check

3. Have emergency stash of $10000 under the bed...check

4. Establish Corp./LLC with biz credit, no personal guarantee........

 

First, I think your goal list is right on target with what I need to focus on, plus one to two other additions. Congrats on getting three major tasks out of the way.

 

Next, to the original poster, I really appreciate your post because this is something I have been trying to gain additional information on. I hope I can have as much luck as you. Being that I come from a discharged BK past just recently, my morale was down about future personal or biz credit.

 

I cannot wait to post my success story over the next 12-18 months!

[pittsburghkid]

First, I think your goal list is right on target with what I need to focus on, plus one to two other additions. Congrats on getting three major tasks out of the way.  

 

Next, to the original poster, I really appreciate your post because this is something I have been trying to gain additional information on. I hope I can have as much luck as you. Being that I come from a discharged BK past just recently, my morale was down about future personal or biz credit.  

 

I cannot wait to post my success story over the next 12-18 months!

 

Thanks bcs, and good luck to you as well with your personal & biz

credit. Hopefully we'll all be able to help each other out. I'll be

getting my LLC together soon, and using some of BHMH's tips as a

guide. I'll be posting my progress in the months to come

 

pdiack, glad to hear you've been able to use an LLC, since thats what

I was leaning toward. Which cell phone service did you get?

[pdiack]

pdiack' date=' glad to hear you've been able to use an LLC, since thats what

I was leaning toward. Which cell phone service did you get?[/quote']

 

Cingular.

[DISPUTER]

I wonder why you had to PG with Dell and BHMH didn't.

[BizCredit]

I'm back, typing from my new dell Laptop

 

ill catch up on reading all the posts, then I'll respond :-)

[BizCredit]

Do you think it has to be a C Corp? Would an LLC work as well?

 

you should open a C Corporation, NOT an LLC, for this purpose.

 

did I mention that an LLC is NOT the way to go???

[BizCredit]

Hey Yo...

 

 

Where in pittsburgh do you live??

 

(I want to come over and "lift :oops: " the $10,000 from under the bed.

Great post BHMH, thanks.

 

Big Congrats

 

I've been trying to get this kind of info someone who has started

a new corporation!! :shock:

 

Had 4 financial goals for the year:

1. Get lousy personal fico score over 600.......check

2. Erase all debt, not including student loans...check

3. Have emergency stash of $10000 under the bed...check

4. Establish Corp./LLC with biz credit, no personal guarantee........

 

NOW I'M PUMPED FOR #4!!!!!

 

I'd love to get any additional info you have in this area, BHMH.

 

Like DISPUTER, I'm also wondering if this works with LLC????

[BizCredit]

I assume if you have an LLC, perhaps that is why you needed a PG?

 

does the LLC have its own phone line, listed with the 411 service??

[DISPUTER]

I have always heard that you pay more taxes with a C Corp. Is that true?

[bee bee]

Does anyone think purchasing an aged-corp would have similar or better results?

[four20nik]

I have always heard that you pay more taxes with a C Corp. Is that true?

 

Depends...I have heard of some "smaller" corps issing a payroll check" at the end of the year to the corporate officer...to eliminate much of the net taxable income for the Corp. You still have to claim it on your personal return...but the purpose for this is so you avoid paying the additional state biz taxes (B&O tax/excise tax/franchise tax)...yes, you still have to pay SS and medicare taxes on the perosonal wages, but SS tax has a cap and once you hit the cap, youre only paying .0145 for med...

 

Whereas, for state excise, it can range...but if the excise tax amount exceeds what the ss/med tax amount would be if on your personal side, many people move the net income over via payroll...or distribution...as distributions are not FICA taxable.

 

Hope that made sense...ask your CPA for advice.

[BizCredit]

Does anyone think purchasing an aged-corp would have similar or better results?

 

yes.

[UPANDCOMMING]

I would have added TU and CA'S to the poll

[pdiack]

I wonder why you had to PG with Dell and BHMH didn't.

 

Not sure. I applied online, rather than thru the phone and just went ahead and did the PG - didn't question it (I know, I know..it was before this board and before I wised up).

 

BTW - I signed up for creditbuilder from DNB, but just got denied from Home Depot (thru GE Capital) that indicated the reason was "insufficient credit from trade references" and this info was from Experian - NOT DNB.

 

So, anyone had any good experian in building an experian biz report??

 

:cry:

[BizCredit]

On another corp I own (opened a LLC, never used it), Experian Called and asked me some info. I have no idea how it got into their system, though...