Simply a Paydex score does NOT mean much as far as establishing business credit the proper way. A basic paydex score of 80 simply indicates that you have like three tradelines on your credit report. Without getting too technical; A Paydex score takes into account the number of tradelines & how well the tradelines were maintained (payments).  Many will tell you to start applying for business credit after you get an 80 score. No wonder these same people will tell you that you would ALWAYS have to PG (Personal credit guarantee) business credit.


On the other hand D& B rating is what tells the real story.  The ratings take into consideration many different factors: number of employers, net worth etc , etc. To me a good D&B rating is equivalent to having a great business credit file. Usually D&B will not give your business a rating straight away. It might take a couple of months.  Diverse lines of credit, UCC filings, repeat business, payment history all play a part. This is especially true in this economy. Moreover, most lenders will look at your report and try to “read between the lines”. They will look at aspects that show the stability, history, future potential etc. As I always say, if you want to develop business credit your aim should be cash lines of credit. You should have the ability to withdraw cash and not pay interest for months (0% introduction rate). Now that would give you tremendous investing opportunity, wouldn’t it.


A strong business credit file has varied lines of credit, great payment history.  It usually has a strong presence on the web. A strong business credit file might also have to maintain some type of compliance issues (business license). All of  these factors can easily be put in place to increase the chances of getting business credit.


If your goal is to get quick credit using a business than by all means, wait for a 80 Paydex and apply for a PGed (personal credit guaranteed) business card; but then remember that will only be an extension of your personal credit.  You can never tap into the full potential of business credit using that method. Feel free to ask me any question.

http://www.gboogie.net/ 

Aimanzul


Collection accounts:

FDCPA is what regulates collection agency activities. Basically you write a letter requesting validation/verification of the account. Do not get hung up on terminology.  You are simply requesting information on the account, pursuant to the FDCPAct. If the collection agencies respond you are not obligated to be satisfied with what they send you. Of course if they send you exact signatures on a document that you clearly signed it will be a little ridiculous denying the document.

During their investigation they cannot, by law, purse their collection activities. If they do you can sue them.  Remember that EVEN if 30 days had passed from the account going into collections you can still request information. You want to have a more aggressive (almost an air of superiority) approach and at no time accept or deny the account. You can write a letter per month inquiring about each and everything thing that you see on your credit regarding that account. Of course you will also reference the FCBAct. Plus indicate your right and ability to sue if the need arises.

Dealing with collectors phone calls could be another headache.  Just a couple of points:  Never assume what the collectors CAN do. Check your state laws. For example, not all states allow collectors to garnish your wages or put a lien on your house.  So if the collectors threaten you with that than they are breaking the law and you can file a complaint. In the case of telephone calls you have to look into TCPA, Telephone consumer protection act.

As you can see the credit repair process is not really fun. You will have some success and you will end you wasting your time but each removal makes a difference on your report.

You will be surprised how many things go unchecked because companies are not really used to people disputing items persistently enough. Collection agencies (& creditors in general) have far too many accounts they can move on to that will not give them the headache that you are giving them. Be persistent…. but will class.

Aimanzul

 

www.ucc-1credit.com

Personally I think you should be more concerned with the bigger picture but understanding payment timing will give you a better understanding of the credit reporting process.

Using your card every month and paying off your credit every month will not necessarily show a zero balance every month.

Credit card companies report balances owed on the date they generate your monthly statement. Simply paying off the balance a couple of days before the statement generating date will do the trick. Do realize that the statement reporting date is separate from the monthly due date. I think that is where the confusion takes place. Call up your creditor and ask them what the date the statement is generated every month. You should simply pay the balance a couple of days before that date. So if the due date is 1st of the month and the statement generating date is the 15th simply pay off the balance on the, say, 11th. That way you can use the card and still show a zero balance, best of both worlds!

This can also be used for business credit vendor reporting. You might want to “reverse” the payments. Creditors looking at your business reports usually want to see a higher balance with certain vendors, which will show that the company has enough activity with vendors (among other things). The creditors also like to see repeat business. Now, if you have a minimum amounts to spend, timing your payments can report the maximum amount. For example, you can get credit from Seton. Seton is usually very easy to get credit from (credit to purchase only from them). Now Seton has a net 10 days credit which means that you have 10 days to pay. Seton like most others report to Dun & Bradstreet at the end of the month. You can buy something on like the 25th, have it reflected on your business credit report on the 1st (end of month – start of next month) and pay it off by the 5th (net 10 days) of the month. That way you have it reflected on D&B and still paid within the allotted credit time, net 10 days.

These are the little things that can give you optimum use of your credit and give you better control over credit reporting. You would be surprised how understanding this can help you in polishing out the credit repairing/building process.

Aimanzul

http://www.ucc-1credit.com/articles_1