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Credit building tricks to fund your selling!
 

I was wondering if anyone had interest in credit building tips & tricks and things that can be done :wink: to build credit in order to fund our little and sometimes not so little selling.

The problem i go into was pre - selling things and putting item takes 7-10 business days in my listings in order to give myself 2 weeks to get items in and then repack and reship. I would sell 5+ $100 items a day and then the supplier would not get it to me in a week, the customers would get pissed cause there waiting 2 - 3 weeks. Being able to just buy the inventory and have it as it sells really helps. As we sell we spend, and worry able PP limited accounts with $$$ after we spent our $$ on the product. :tears:

My point: If we had a way to build our credit ( personal ) and then business latter on amongst each other like we would on the credit board we can all worry a little less. For those that have good credit, you can add an authorized user without n e one ever getting the card and they get all you good credit history. It still works. I know a few merchandise type of credit issuers that do not look at credit and approve you for primary in your name to boost you. Anyway just an idea.

any thoughts:dance:

Piggy Backing does NOT work anymore unfortunately, they stopped that a couple years ago.

You cant do it overnight unfortunately. There are a couple law firms that will dispute all negatives on your credit report if you have any and that will increase your score. And also pay your cards off to around 10% of the balance every month.

I have another question about this. Say you have a debt that's already been defaulted on and reported on your credit... does it help your credit at all if you pay off the debt yourself rather than waiting the 7 years for it to be taken off your credit report? The reason I ask is because the debt isn't that big and they're not even going after me for it. Also once you pay off a debt it still remains on your credit report until the 7 years are up.

It does help if you pay off the debt. The debt will show up as paid on your credit report so your score would go up some. Some collection agencies don't report to the credit bureaus that you paid the debt so you should mail copies of the letter showing that the account is paid so it will reflect on your credit report.

You can use DHL and your customers won't get as pissed, pre-sell the stuff take the money and order the lot then ship it to your customers, it might take about a week and a half using dhl. If it gets seized then your screwed I had that happen once it was a mess, had about 30 people wondering where their package was.

I always presell, don't be ashame to refund if the stuff takes to long and cancel the order

If the original creditor pulls the account from the current collection agency, the debt will disappear from your credit report. It can be put back on if it is assigned to another agency, however.

Whenever you get a letter from a collection agency, you should send them an immediate dispute letter. It can prevent the item from being placed on your credit report. Bill collectors like easy targets, they would rather avoid dealing with you if they think you will cause them a problem. I am speaking from 18 years of industry experience on the creditor side. Here is a sample letter you can use from Edelman-Combs, one of the largest consumer protection attorneys in Chicago:

Your name
Your address

Debt collectors name
Debt collectors address
[We suggest you fax or send by certified or
overnight mail so that you have a record
of RECEIPT by the debt collector]

Re: [account number]
Ladies/ Gentlemen:

Please be advised that we dispute the claimed debt(s) described above.

Please provide any contract or agreement we signed and an account history showing how you arrived at the conclusion that we owe the amounts claimed and when this alleged debt(s) was charged off.

Furthermore, you are hereby requested, as required by the Uniform Commercial Code, to provide copies of assignments and other documents showing that you or your principal is in fact the assignee of the debt(s) described above and that you are legally authorized to attempt to collect the claimed debt(s) from us.

Unless and until such proof is furnished, we do not recognize any right on your part to attempt to collect any amount from us through any means whatever, including credit reporting. We refuse to pay any debt that has not been substantiated in the manner we request and direct you to cease further communications unless and until you can provide such substantiation.

Thank you.

Sincerely,
[sign]

One other thing....

You mentioned that the debt was not big enough for them to come after you. However, if you ever owe a lot of money, NEVER PAY VOLUNTARILY UNLESS YOU ARE PAYING IN FULL OR SETTLING THE DEBT!

Once a payment is made on an account, the statute of limitations resets (this is the amount of time they have to file a civil lawsuit against you). So, if the debt is 4 years old, and the Statute of Limitations is 5 years, you have one more year until they can no longer file a lawsuit against you. However, if you pay even $10 or make a promise to pay, the clock is set back 4 years, so they have 5 more years in which to file a lawsuit.

This is TOTALLY SEPARATE from the amount of time a debt can legally be reported on your credit. The time limit for that is 7 years from the date of chargeoff. That does NOT reset. Judgments and bankruptcies can stay on your report for 10 years.

There are a few exceptions to this, but this is almost always the case.

piggybacking as you would call it most def. still works. Fico 08 is a myth. I think they changed the way AU's show up for about 6 months and then they were sued by several people. AU's or authorized users do work. There area also primary accounts that are new and reported by different financing companies showing a brand new line and limit.

The point of a new primary line in your name (without a credit check) is to add 2k,5k,8k,10k to your reports as a new line and limit. This show positively against your debt to income ratio. For instance: you have 3 lines of credit right now as an example.

macys CC bal 2,500 limit 3k
Citi CC bal 4k limit 5k
Boa CC bal 1500 limit 2k total Bal: 8k total limit: 10k utilization: 80%

The high debt to limit ratio hurts your credit.
a new primary line of 10K would double your seemingly available limit. Your utilization would change. From 80% to 40% huge difference.

It's ideal to be at 20% - 30% but you would get a great score increase.
Au's also give you an increase. Some of us here have already established credit lines that have been open for years with a high limit and low balance. We can add each other as Au's and get a score increase.

Basically the person that you add will have a card send to your home address in their name. they will never have access to the card. When you receive it, cut it up. usually you get a confirmation in 7 days and then in 2 weeks it posts to all 3 beaus. they stay on for a few months.

so there are things we can do to help each other. otherwise these service have to be paid for though referral credit repair companies. Yes you do have to be careful. Thats why I thought It would be better to just share.

I havent heard anything latley on this topic... anyone want to try sharing Au's. Another option to offer actual credit accts to people for actual physical items like basic electronics, and or virtual like an ebook or music business website. The only thing is that most credit beaus require that you have 200 - 300 accounts before you can report your accts on a monthly basis.

Has anyone used this service or one like it?

Credit Repair Services to Help Improve Your Credit Reports | Lexington Law

Most these kinds of things are cheap scams now I don't know about this one but I wouldn't waste my money or time with them. Your better off doing it yourself sign up for creditkarma.com take the initiative and look at your score daily and read there tips. Learn and repeat.

Most are however there is a few that you can use to benefit your Business Trade line. I use a couple and I have been able to run MY business. You have to look at this like A BUSINESS. And find business people who know how to get things done.

Now I have a 0 fico score but a 80 PAYDEX score. I have know credit what so ever all wiped clean and now I use credit with know personal info to fund my EBAY BUSINESS.

Thanks to that STEALTH book I will make a $1,000,000 off of EBAY in 18months

I'm sorry to argue... but if you borrow money to use in your business, your business actually belongs to the BANK.

I personally don't believe in borrowing money. I think the whole credit score system is a joke.

How ever if you want to build a stealth empire you need to have access to product and that means money. You have a business to fund your EBAY, so you use there money till you have enough in profits to do it yourself.

But the idea of personal credit is stupid again I have a ZERO fico score and an paydex score of 80 and it feels good to be stealth credit I may have to write a book LOL

a paydex of 80 is not stealth credit just business credit. but to get any decent amount of credit unless your corporation is 2+ years old and show high credit lines in good standing you will have to PG - Personally guarantee most Cc and lines of credit in the business name.

If you have a 0 fico that means u have no tradelines. you might want to add an AU - authorized user and then open a store Cc like Macys.
you need 3 personal credit trade lines to obtain a fico score.

I thought trade lines didn't affect fico any longer?

thats a myth, fico 08 lasted for about 4 moths and they were sued multiple times and Au's were put back in place. depending on your credit position, debt to credit ratio, usage to limit ratio and score i can get your fico improved within 30 - 60 days with the addition of tradelines. Also building business to get business credit cards, business tradelines and funding can be done. this stuff i not overnight, so no scams. anyone that tell you will have X amount of $ in no time is full of BS.

It takes time but with the addition of tradelines and a stronger personal file you can build a business credit file with high credit lines.

They are a scam. There is nothing they can do that you cannot do yourself.

They have some stories of success but the horror stories of their broken promises are posted on many websites.

newtools,i have sent you pm.

Since this post, I've done a lot of research on the subject, and the fact is, it's a waste of money. You can do all of this yourself without spending the money.

There are enough free sites that have the info to help anyone do the work themselves, I agree. There are some excellent forums to be found by 'google'. I can vouch for one in particular :thumb:

Part of the problem is facing the fact it's not as overwhelming as it seems. But more importantly, resolution may not be immediate. That must be considered,imo :pop2: