Building Corporate Credit Without Using Personal Credit
Building corporate credit without using personal credit requires creating a business with an EIN number, opening a small line of credit with a retail company, paying bills on time and building up a history of good credit. Start a bank account for a company with instructions from a registered financial consultant in this free video on business credit.
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This is financial adviser, Patrick Munro, talking about how to build corporate credit without using personal credit. In today's litigious society, if someone is in business, it's a good idea that they develop a company. Most notably, an L.L.C. or a partnership should always be done with an attorney. These entities are like people, and they have special numbers called EIN numbers. Those numbers are different than your social security number. It's possible to build corporate credit using, after you develop your L.L.C. or partnership, this EIN number. And you would apply first for a small amount of credit, normally with a gas card company or a retail or office supply store. If you're granted credit, then of course, you receive a credit card in the company name, and you would dutifully pay your bill on time. As you develop a record there, you can set up a bank account for the company. And slowly, your credit file will begin to develop. At that point, you can also develop a system to send out for credit cards in the company name. And once you pay those on time and dutifully as well, you can take it from there and go for mortgages, lines of credit, car loans, automobile loans, and really the sky is the limit, depending on how well your business is going. This is Patrick Munro, financial adviser, talking about building corporate credit without using personal credit.