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Need Advice, I need to purchase a business warehouse, Don't Know What to Fix on Credit.


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I started a business in 2016 with the last couple thousand dollars I had.  Prior to that I made a bad business deal using personal credit, and I had to default on all sorts of credit cards and a small loan. Now 5 years later my business is doing good and I need a business property. I don't know what to do with the remaining negative items. 

 

5 of 11 are settled. There are only a couple non-settled credit cards that show up on a credit report. the loan is on the reports. 

 

The past year I have not had too much trouble getting money or credit. I bought a car in 2019, refinanced in 2020. I just opened a business line of credit of a small credit card. I have a secured credit card for personal credit and that is all. I think my current Experian score is around 700. 

 

If I settled a card should there still be a "past due" amount that shows on the report? Is it worth challenging that, or "charge_off" status?

 

I was going to try and settle the business loan. Should I try to settle some of the small debts? Is it worth it to pay in full? should I get another personal credit card? 

 

Edited by Indy17
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Have you pursued an SBA loan?  My understanding through the years was that they were a little more liberal with underwriting than most commercial options...

 

I would certainly be looking at the business credit side of things and find someone that does not require a personal guarantee that pegs the loan to your personal credit. 

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7 hours ago, centex said:

Have you pursued an SBA loan?  My understanding through the years was that they were a little more liberal with underwriting than most commercial options...

 

I would certainly be looking at the business credit side of things and find someone that does not require a personal guarantee that pegs the loan to your personal credit. 

 

I am pursuing an SBA 504 loan. I do know they provide for lower credit scores. The government guarantees the loan, and the bank only is at risk for 20%. My credit score is fine. It's just the junk on the report. My main bank denied me hard when I looked into a SBA loan last year. Since then scores have gone up, even though I still have the junk on the report. That same bank offered me a credit card a couple weeks ago. However, the credit card was probably an automated gesture. 

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Not that anyone is paying attention to this thread, but I tried to get the ball rolling with a lender. I embarrassed myself and ate *Admin and our Terms of Service prohibit profanity*. 

 

Somehow my Transunion score was way lower than anything else. It was 618. Credit karma was showing me my Transunion was 680, my Experian was 700. When I was paying Lexington law my FICO was around 680. I don't know why actual score was so far off. 

 

I just refinanced my car last year, and I didn't have any trouble. I know they pulled a different report. 

 

This sucks. I am xxxxxxxxxx for a loan. 

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NEVER make a decision based upon a FAKO

 

And I hope you have learned WHY people recommend AGAINST places like LexLaw.  They do more harm than good. 

 

Spend some time reading up on different Fair Isaac models.  There is not just ONE score derived from each of the four bureaus...

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step back and get organized to work on your reports in a systematic manner instead of biatching.

 

step 1? have you received paper copies of your four major consumer credit reports?

 

Order paper reports from the big four

https://creditboards.com/forums/index.php?/topic/590506-ordering-paper-credit-reports-information-inside/&tab=comments#comment-5623246

 

IDS: https://www.innovis.com/personal/creditReport

 

 

 

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Yeah, I have the credit reports. Everyone keeps saying settling debt won't help your score, but that's the issue the banks keep having. So what the hell I am to do?

 

6 hours ago, centex said:

NEVER make a decision based upon a FAKO

 

And I hope you have learned WHY people recommend AGAINST places like LexLaw.  They do more harm than good. 

 

Spend some time reading up on different Fair Isaac models.  There is not just ONE score derived from each of the four bureaus...

People recommended Lexington law not too long ago. They suck now. I filed a complaint with the consumer protection bureau and they gave me money back. Still a waste of a couple hundred. 

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5 hours ago, Indy17 said:

Everyone keeps saying settling debt won't help your score, but that's the issue the banks keep having.

 

The lender requiring any or all of the debts to be repaid is a separate requirement from their minimum score requirement.

 

You may not see much, if any, score improvement from settling any of your serious derogatories until the last one has been removed from your reports.

 

Even with a qualifying score they may not be willing to close your loan without addressing one or more of your serious items.

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6 hours ago, Indy17 said:



Yeah, I have the credit reports. Everyone keeps saying settling debt won't help your score, but that's the issue the banks keep having. So what the hell I am to do?

 

People recommended Lexington law not too long ago. They suck now. I filed a complaint with the consumer protection bureau and they gave me money back. Still a waste of a couple hundred. 

1) settling debt may not help scores if a PFD is not negotiated, but if your lender wants debts paid, then you do what is necessary to make the lender happy so that you can get the loan.  This is even MORE of a truism with business credit.  Would you lend to someone that is documented as not taking care of their financial (ware)house?

 

2) NOBODY on this site would have recommended LexLaw to you.  They have been roundly clowned for more than 15 years around these parts...

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5 hours ago, centex said:

 

2) NOBODY on this site would have recommended LexLaw to you.  They have been roundly clowned for more than 15 years around these parts...

There is another credit board that was endorsing them. Not anymore. 

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7 hours ago, Indy17 said:

There is another credit board that was endorsing them. Not anymore. 

No GOOD credit board that was comprised of members with half of a functioning and firing synapse would do so...sounds like name and shame is in order just for the benefit of anyone else coming along later.

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