I keep getting these "jump-the-gun" questions about students wanting hundreds of thousands of dollars in business credit yet their personal credit sucks.
Talk about putting the cart before the horse.
First off, get that 2003 Ray Reynolds infomercial about the falsehoods of building business credit out of your mind for a second, okay?
The reality of the situation is that, because of what happened with the recent banking debacle circa 2005 through 2008 (where the banking system was days away from collapsing), things have changed, folks! A lot!
So...if you think you're going to be strolling into a bank and signing on a BLOC (business line of credit) for $250,000 without them pulling your credit or expecting you to agree to a personal guarantee...keep dreaming. Ain't gonna happen!!
Since 9-11 happened, as you may recall, we had something called the Patriot Act put into place which is basically a legal way of violating our privacy. Because of this, all loans are required (by federal law) to pull the personal credit of the "real person entity" applying for the loan to "tie" the loan into a real person and to make sure you actually ARE a real person (and not some company, offshore corporation, facade, identity thief, etc.)
So, unfortunately, there are many people out there who will bamboozle you into believing that there are loans where they don't pull your credit and/or there is no personal guarantee. While there are some types of loans that won't require a personal guarantee, there are no loans or programs offered by any legitimate bank or lender that won't ask for your personal credit to be pulled because, as I already mentioned, it's federal law.
Glad we could square that away.
The next thing I want to clarify or get straight is this..."Monica, I have a 530 FICO and I want to get a bunch of business credit cards and BLOCs. So, what do I do?"
Answer: Start rebuilding/fixing your personal credit first before you do anything with the business credit stuff.
(Is that clear enough?)
In order to benefit by getting "a bunch" of business credit cards and BLOCs is by having a personal FICO over 700. Period. There is no other way around it.
Now, I know I hear a few disappointing sighs but...guess what? You can actually boost your personal FICO in a snap if you know what to do. I've had students boost their FICO scores in as much as 100 points in a month. I've had students boost their FICOs 200 or 300 points inside a year.
And no, it's not that hard. Not at all.
This audio seminar explains everything.
By the way, today is the last day for you to be able to take advantage of this opportunity. In fact, you have until 5pm Pacific Time today.
See you at the top!