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Old 19th May 2012, 11:17 AM   #2
phanio
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Join Date: Feb 2009
Location: Texas
Posts: 261
Default Why You DON'T NEED BUSINESS CREDIT

Don't waste your time and the money you will pay someone else for a product that does not work.

I spent over 20 years as a commercial lender and not once did I or my colleagues ever pull business credit to be used in a loan underwriting.

Now, if you are seeking a $500 line of credit at office depot – then by all means build your business credit.

But, very few lenders or creditors report to business credit histories and if they don’t report – other lenders know that the information in those reports is inaccurate and incomplete.

If banks or other lenders don’t use it to underwrite loans – then why have it or waste time and money trying to get it.

And, most lenders have seen, over and over again, a business owner with bad personal credit trying to use business credit to get over on the lender (to get around their poor personal credit). You start talking about how great your business credit is and the red flags of the lenders start to go up.

Don’t believe me – do a little homework – call around to commercial banking departments or other private lenders and ask them if the use business credit to make loan decisions!

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Last edited by phanio; 19th May 2012 at 11:19 AM.
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