How to Create a New Credit File

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Creating a new credit profile is a way to parallel your current credit standing and personal debt profile. A second credit profile will not relinquish your responsibility to your current debts and financial responsibilities, but it will create an alternate profile. The only legal method to create a second profile is through a Federal Tax ID number, usually created through a new business.

Understand that a new credit profile does not release you of your requirement to maintain, pay and monitor your personal credit file. A new credit profile is simply that: a second profile that further illuminates your pay history and financial responsibility.

Develop a business idea and begin to write up a plan that will lead to a profitable, sustainable venture. Without a solid business idea, a plan for growth and revenue, and a model that shows that the idea will have permanence and viability in its market, you'll be unable to obtain a Federal Tax ID number.

Visit the IRS website in "Additional Resources," below, to fill out an application with the IRS to obtain a Tax ID Number. You'll need facts and figures about both yourself as well as intimate details about your business. Now wait. Your Tax ID number may take as long as six weeks to arrive. This number is important not just for creating a business credit profile, but also for filing taxes.

Continue business operations. Understand that a lending institution will most likely not loan money strictly based on the company's credit profile until at least three years of growth, strong revenue, profitability and viability can be proven on paper. However, you can most likely borrow money against a business in a secured fashion, not strictly on credit, and begin to build that credit profile.

Borrow against the business. After a few years of sustainable growth, approach lenders to get unsecured credit based solely on the business profile.

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