Some times you will come across incorrect information on your iupdate business file, information that you can not change without contacting D&B. Like incorrect UCC filing information. We all know that calling D&B is not a good idea. So if you notice a UCC number appearing on your file that is clearly not your companies or a filing that has already been cleared, what is the best thing to do?  I am assuming you checked with that states secretary department to double check if the public filing is consistent with what you think. Here is a useful e mail that you can use:

E mail them and state your case clearly and concisely,  attaching any “proof’, your Duns number etc. You see D&b does not make these type of e mails public on their website cause they want everyone to call them up so they can sell you one of there overpriced packages.

This is a follow up article from Part 1 that shows a small business that just got a Duns report (from Dun and Bradstreet) established. Part 1 shows the basics and this part shows how the report keeps changing as new items are updated as the business owner establishes his/her business credit by following the steps that we outline, vendor credit, public filings. This will be a series of articles and as the corp builds its credit I will keep posting the updated report and highlight the changes.

To read Part 1 click here and go to the bottom of the page, last article.

We all know that the format of D&B log in and the report has changed a little. Plus our corp (see the previous article on this subject) has certain information updated, meaning new information appears on its report.

The explanation of most of what you see above is in Part 1 (click here) and read the last article at the bottom of the page.

The page above shows the major changes that took place since this report was updated (see Part 1). Lets magnify this page and see the details. First the top half:

1  Notice the line above Public filing shows that on Sept 2 2010 a correction to the address info took place. It was an addition of an office location.

Ucc filings:

2 Notice the filing number (one of the ways the credit agencies look deeper into the filings)

…… be continued. You can read this complete article (and Part 1) immediately by clicking the links below.

Complete Part 2

Also read the first article on Dun & Bradstreet  for a better understanding of what D&B really looks for click here


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. 


Prepaid cards or loans are the first choice BUT make sure that they report to credit bureaus and not have outrages fees: For example: Applied Bank secured cards can be a choice. Also approach your personal bank for a secured card or loans. (read the Personal credit repair Part1).

After a couple of months move to unsecured cards (or semi unsecured cards). At this stage you have some credit history and you want to apply for unsecured credit. It is not really wise to apply to just any credit card since at this stage you will be rejected by most card companies. An inquiry on your report is a negative so be careful.

Orchard bank is usually a good choice. Of course you would have to put up with some really high fees . Plus do not expect them, in time, to increase your credit dramatically or reduce your rate by much. The aim is to develop some positive credit history and then apply for OTHER credit cards.

Personally I would say apply for a First Premier card as soon as Orchard appears on your credit report.In terms of reporting and developing credit they are good enough BUT it is their ridiculous fees that I do not like. They have a tendency of charging fees even if you have a zero balance on your card. Just be aware of the various fees so you can budget for them. The last thing you want is to be late on payment while rebuilding credit.

After waiting another two months or so I would suggest, Capital one and Discover cards. At this point you should be at a stage that your credit is improving at a faster speed. You will have more choices and you might want to apply to some of the cards that you get offered in the mail. These days Chase is becoming more relaxed in its lending standards. So you might want to consider them also.

Have a good mix of credit: Secured loans (read article on “Personal Credit Repair Part 1” , for the “secured credit trick”), credit cards, installment loans etc.

Here is something that you might not know: If you apply for a years membership with Bally total fitness, the total amount of the years membership appears on your credit. You will keep paying the $10 to $30 per month membership fee and the balance is reduced. So it has an effect of an installment loan and that would certainly help build credit.

These days banks are surprisingly compromising IF they give you credit. May be it is the fear of having another defaulted credit client, I do not know, but use that to your advantage. I have seen situation were one calls up First Premier after using them for a couple of months and asking them to close the account. The reasons given were; high fees and too low a credit limit. After some negotiations First Premier CREDITED the card with enough money so the client would not have to pay the fees out of pocket. This happened with no strings attached, meaning that the card could be closed again after the allotted 6 months. Now I am not saying that this would happen to everyone. I only site this example to illustrate that negotiating with credit companies after you have made some payments can pay off.

Lastly do not forget the power of UCC filings. No need for approvals, no need for picking which place to apply, no need for negotiating and certainly no fees to pay (other than the minor filing fee). UCC should be a part of credit building and repair. As soon as you apply for a secured card or loan you should file UCCs and they work for business and personal credit


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.


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.


Consumers these days instinctively have their “hype antennas” up. But that “Get $90K credit…..90 days..”  headlines still seems to work for selling business credit solutions.

Lets start with the obvious. The changing economy has made lending very conservative. Lenders want your social security number when applying for business credit. That basically means that 99 times out of 100 they will look at your personal credit as well.

Notice that I said 99 times out of 100 and not 100 times out of 100. This will come as a shock to many semi- experts BUT there are still ways to get business credit even if your personal credit is not very good.  It just takes a little longer and the approach is different . It entails establishing a business file that can “stand on its own two feet”.

So can you get 90K (OR EVEN 60K)  of cash credit in 90 days ?  It is possible but highly improbable. Individual circumstances vary, their existing personal and business credit play a role. Existing business set up and recent activities play a role. Too many factors are involved and just like any art there is no one perfect answer.

Personally I think claims like the “90K in 90 days” give credit/finance experts a bad name. Too many quick buck artists with fancy websites. Having said that I do believe that if you have a good sense of the business credit (or personal credit) world, you can get very creative,  so much so that to the “onlooker” it might seem like magic.

To me it is like a delicate piece of puzzle put together and that of course can not be taught in “10 easy steps”. I also believe that our country is build on the finance “game”.  To me there is nothing quite like having massive funds available for investment opportunities. Observe the workings of large corporations and you will get an idea. Never under estimate the power of leverage. Read the first article that I wrote to get a basic idea.


It constantly amazes me how many small business owners do not have a clue about business credit. We all know that one of the biggest challenges of a small business is the lack of financing. Some time in the first couple of years the lack of capital/financing kills most businesses. Something like 95% of new businesses close in the first couple of years.

Now I do understand that setting up a business, hiring staff, keeping the books, running the day to day operations of a business leaves little time for anything else. But considering the overwhelming number of businesses that close up due to lack of financing, does it not make sense to learn about business credit BEFORE even opening up a business.

On of the problems is that business owners  assume that once they get their business operating at a certain level they will have no problem getting business credit. Everything will fall into place.


To that all I will say is “Most businesses close-up in the first couple of years due to lack of financing” – excuse me for repeating myself.

Getting the appropriate business credit education is a MUST even before opening a business. Knowing how to secure financing before the lack-of-financing flood, is intelligent business planning.

The amazing thing is that business (& personal) credit is not all about having great cash- flow,  that is like saying personal credit cards are only for people with stable jobs. Ok, that might not be a good example. My point is business credit has many facets to it, cash – flow is only one of them. I have seen people set up business cash lines of credit with very little in business operations. Similarly, I have seen business with enormous operations run into problems getting financing. To take it to another extreme, a person can set-up a number of shelf-corps  complete with cash lines of credit that can be sold for profit. All done completely legally.

Of course UCC filings is just one aspect and can be effective by itself but it is just one piece of the puzzle.A good SIC code, dealing with Dun & Bradstreet, other public filings, “padding” your file (etc) all help in getting business credit.

Please just realize that the credit world, especially the business credit world, is not just for the select few.

Stay tune for updates.

Thank you.


How to improve your chances of getting credit from large banks like HSBC, Citibanks and others:One of your ultimate aims, as far as business credit, is to get revolving cash lines of credit. As you build your credit file you will have credit offerings mailed to you. I would strongly suggest to ignore these offers. At the early stages you want to nurture your file and  not burden it. You are likely to get approved by some of these banks but it will slow your progress later on. Your goals should be higher.

We all agree that not all banks are the same as far as their lending practices. Some banks are more conservative than others.  Lets take Citibank.  Citibank is probably one of the most dominant banks when it comes to starter revolving accounts. It stands to reason that you would want your business noticed by them. Did you know that Office depot, Home Depot, Staples, Dell, Sears, RadioShack are all backed by Citibank.  First registering with these companies and eventually getting some type of credit with some of them will certainly put you high up on Citibanks list. As a result your chances of getting lines of credit with Citibank will increase.

Similarly;  Walmart, Lowes and are backed by GE Money bank. Walmart, Lowes and all offer some type of credit that is worth pursuing if one of your aims is to get lines of credit with GE Money bank.In a few days I might get some more names of banks with their associated vendors and list them on this website. Also,  names of banks that are high up on my list as far as eventually getting cash lines of credit.In a few days I might get some more names of banks with their associated vendors and list them on this website. Also,  names of banks that are high up on my list as far as eventually getting cash lines of credit. Getting business credit established as soon as possible means “aligning” the business so the process flows in a smooth progression, leading up to banks giving you cash cards.


Here is a situation that is not uncommon these days :

An individual that has a couple of maxed out credit cards and a few collection accounts. The cumulative debt is not large enough to file bankruptcy. Bankruptcy should be the last option anyway. That basically is the story of his/her personal credit.

We all know that the collection accounts can be negotiated down if enough time has elapsed. Of course you still would have to come up with the money but it will be a lot less. In most cases you can also work out a payment plan.That leaves you with the maxed out credit on your credit report.

One good way to get positive credit history on your credit (that will result in increased credit score) is to get another credit card or loan. I think it is fair to say that in this economy it is tough to get much credit increase, even if you have decent credit. Years ago one could become an authorized user on someones credit card and add positive credit history, that would certainly help you in this situation. Only problem is that becoming an authorized user does not have the same effect on your credit like it used to. The other option is to borrow money from family or friends to pay off your debt. Mixing family with business is not always a good strategy.

There is another way. Public filings, especially in the form of UCC filings. Credit bureaus are connected to a public filing database that updates periodically (varies by state). They automatically receive all liens and bankruptcy information after it is filed at the county, state or federal level. You can actually file a certain document indicating that you have incurred a debt. Credit bureau will pick it up and as a result it will (one way or another) appear on your credit report. This is another way to add positive credit history. This results is your credit score increasing since a positive credit history appears on your report.

Please understand that this is a completely legal method and is very effective. Of course there is a certain amount of detail to it but at the end it is as simple as I make it sound.

Ever wonder how certain property managers and cars sales people mange to get liens on your credit. This is what they are really doing. A few of the more knowledgeable credit gurus file two or more of these public filings on their clients credit report to increase the credit score. Of course they charge enough money for it and never reveal what they are really doing.

The amazing thing is that even if you have filed bankruptcy you can use this method to quickly add lines on your credit report. Having two such lines on your report plus one secured cards (as an example) will quickly add positive credit history.

As a side note: Small amounts of credit is NOT that hard to get a little after filling bankruptcy. If you default on a debt, a collection agency can go after you for many years (depending on your state) . However, if you file bankruptcy most of the debt that falls under the bankruptcy can NOT be collected. Now, AFTER a bankruptcy you can not file for another bankruptcy for another 6 years or so. This gives lenders the satisfaction of knowing that if you default on their loan and you just filed bankruptcy they WILL be able to go after you for many years to come. As you might know that a judgment is likely to be filed against you and there is a chance that they will deduct your pay check or bank account. So getting some credit after filing bankruptcy is not that hard. Gentle readers there is always a come back.

Going back to public filings: In a nutshell this method that we are advocating eventually has the same effect (even if indirect) as getting a loan and gradually paying off the loan. We truly believe that this remains one of the best kept secrets of credit improvement.

Debt, good or bad (fortunately or unfortunately) is a VERY important part of modern everyday life. Either learn to use it or forever be a victim of it.

Public filings- UCC filings work both for personal and business credit.