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m&mmowing
07-06-2009, 06:57 PM
I have no credit right now, and have only been officially in business for about 3 months.
So here's my dilemma, no credit, and soon i'm looking to get some land, and without credit, hard to get financing.
Talked to my real estate agent, and looked online for ways to build credit.
2 ways i'm soon to start are
1) cell phone plan
2) I need a pushmower, I have the cash for it, but will finance it to get the credit.

any other easy ways to build?

grandview (2006)
07-06-2009, 07:01 PM
Time.......

Ryall Landscaping
07-06-2009, 07:43 PM
I have no credit right now, and have only been officially in business for about 3 months.
So here's my dilemma, no credit, and soon i'm looking to get some land, and without credit, hard to get financing.
Talked to my real estate agent, and looked online for ways to build credit.
2 ways i'm soon to start are
1) cell phone plan
2) I need a pushmower, I have the cash for it, but will finance it to get the credit.

any other easy ways to build?

A lot of banks (maybe all? not positive) have credit cards that you pre-pay for, you use them to buy whatever and then pay it back every month and you'll get credit like that. You have to pay up front for them. For example, you could get one for $500 and use it for fuel every month and just repay as you go.. Just make sure you pay back on time (early if you can) EVERY time. Even just one late payment would defeat the purpose IMO.

PNSLawncare
07-07-2009, 05:21 AM
Credit is harder to get now, banks ARE NOT giving out credit for the life of them, infact they are often CUTTING limits now a days, alot of construction and other plans are going belly up because the banks are no longer giving out credit like it was before.

if you have no credit all you need is time, more then likely you will not qualify for that push mower financing.

get a cell phone, get a checking account for the buisness.

im unsure about pre paid credit cards hitting your credit positively, in fact i dont even know if they even touch your credit, thus the PRE PAID part of it.

but there are many things you can do to give you good hits on your credit, the cell phone for sure, a checking account might help.

what i suggest you do is go to some local banks and see what they have to help you establish some credit, a local bank by me had a type of CD that they allow you to pay towards every month about a 100$ or so, in return they hit your credit good every month until it matures.

perhaps after they they may give you a cc card. if you get a credit card, keep the balance low and pay more then your minimum. yes you can put a high balance on there if you buy something, just make sure you can pay it back fast.

also getting Utilities in your name will build credit, like a electric bill, things like that.

good luck.

credit is more of a pain in the ass then anything, CASH IS KING, remember the only businesses now that are making it have alot of CASH on hand, NOT credit.

browningv308
07-07-2009, 07:11 AM
when i bought my first house i too had no credit history never had a credit card and always paid cash for everything 1 way i built credit history was to take 90 day notes from every bank in town i could find if i had $500 in savings i would go and get a note for $500 and then pay it off early also used to take out 90 day notes for $2000 don't spend the money then pay it back early 12 of those in a year and a half and my credit score went from nothing to almost a 700

bohiaa
07-07-2009, 08:29 AM
Get a walmart card, you have to start small, there is NO magic way to build credit, just the ole fassion way....

bigmudder77
07-07-2009, 08:38 AM
credit card i had one since i was 15 lol ya who gives a 15 year old a credit card right well visa did 22 now and have paid off every statement in full since i had it i have a 780 high 765 middle and 740 low credit score and the credit card was the only thing i have

i pay cash for every thing else and dont have any loans out all my trucks and mowers were all paid in cash or i didnt get them only thing i use my card for now is food and gas mostly cause i go through at least $20 in 2-3 days and i get points with it now so even when i have the cash its just better to use the card

but ya over night its not gonna happen it does take time to build your credit score

supercuts
07-07-2009, 06:58 PM
its tough but at least your giving it alot of thought. perhaps your parents will co-sign one for you. if not, do the cell phone/finace thing. one thing to remember, if you get declined a few times its going to negatively affect your non-excistant credit score. also try a sears or walmart card.

Duffster
07-07-2009, 07:06 PM
Find a GOOD business bank to deal with, Pay cash and forget the credit cards.

benjammin
07-07-2009, 07:07 PM
As previoulsy mentioned, go to your bank and see if you can get a secured credit card with a deposit. Use the card regularly (instead of cash) and pay the full balance every month. After 6 months or so, don't pay the full balance, just carry a small balance for a month or two, then pay it off. Keep using the card for a year and a half or so, carrying a small balance every other month or so and you'll ge a notice saying your limit has increased and you no longer need to maintain the security deposit.

Ryall Landscaping
07-07-2009, 08:08 PM
Credit is harder to get now, banks ARE NOT giving out credit for the life of them, infact they are often CUTTING limits now a days, alot of construction and other plans are going belly up because the banks are no longer giving out credit like it was before.

if you have no credit all you need is time, more then likely you will not qualify for that push mower financing.

get a cell phone, get a checking account for the buisness.

im unsure about pre paid credit cards hitting your credit positively, in fact i dont even know if they even touch your credit, thus the PRE PAID part of it.

but there are many things you can do to give you good hits on your credit, the cell phone for sure, a checking account might help.

what i suggest you do is go to some local banks and see what they have to help you establish some credit, a local bank by me had a type of CD that they allow you to pay towards every month about a 100$ or so, in return they hit your credit good every month until it matures.

perhaps after they they may give you a cc card. if you get a credit card, keep the balance low and pay more then your minimum. yes you can put a high balance on there if you buy something, just make sure you can pay it back fast.

also getting Utilities in your name will build credit, like a electric bill, things like that.

good luck.

credit is more of a pain in the ass then anything, CASH IS KING, remember the only businesses now that are making it have alot of CASH on hand, NOT credit.

Yes, a checking account and cell phone would help.

A secure credit card DOES help towards your credit. Logically, it makes sense. The bank/etc. can look at how you pay your payments. They're going to see how you handle a $500 "loan" before they give you a 5k, 10k, etc. loan.

Granted, banks are WAY more strict about giving out money now, obviously.

m&mmowing
07-07-2009, 09:32 PM
thank you for all of the responses
the reason i ask, is have taken everyone's 1st advice, pay cash.
therefore the prepaid phone, everything paid off, etc.
i've got about 34 lawns and pullin over $1000 a week gross, so things are good, I would just like to have the credit so i can get land financed to put up a shop and rent it out

BadRancher
07-10-2009, 01:26 AM
Just keep saving and paying cash. You don't have to have credit to buy a home or land.

rocs2wavs
07-10-2009, 12:02 PM
Here is what I have seen w/ 12 yrs experience in Finance and Collections...

Rule number one Cash is Always KING!!! You already got that great advice!

Things you will more than likely need credit for in the future is a Home. Notice I did not say car or equipment. Although those to things can be very likely and fine if used wisely! Go to a used book sore and by Dave Ramsey's "Total Money Makeover". Great principles buying cars also applicable to equipment. I don't much care for Dave's attitude but his ideas in this area are spot on, IMOP.

Cell Phone some carriers do report to the bureaus. Most don't unless you go late and then of course your not building a positive score.

Credit cards - Advert as build or rebuilding credit, total BS!!! Low credit limits of $200-$500 sky-high rates on interest and crazy, crazy fees. Not enough limit to build much of anything! = SCAM

Your best friend is your local Credit Union much more lenient lending practices "usually" after you have built a relationship (see below). Most are still very "people" based and not just a FICO score computer program done in 3 seconds of scoring.

Take a $1000 or what ever you can afford more the better and get a secured loan through your CU. Essentially you are borrowing your on money and paying very little interest and building your score.

Now you will begin to have a relationship w/ the CU. Now later on IF you choose to get a reasonable loan for truck or equip. your line of communication is now open.

What also helps is a large down payment toward your purchase. It shows your intention of getting a loan and purchase is well thought out by you, it shows discipline and commitment as well. It will also get you a lower monthly payment and less paid back in interest because you financed less. The CU underwriter will like it because it greatly reduces the CU risk shld you default. Meaning that if you bought a great used truck for $15k and the loan value was $17,500 and you put $5k down. The CU is at very little risk shld you default and they have to repo the truck because truck wld be worth more than what you owed at $10k. (roughly)

Hope this makes sense and I did not throw to much at you :confused:

topsites
07-10-2009, 12:45 PM
I find the old saying of "those who have the best credit are the ones who need it the least" is very true.
But it's no accident, the big thing is time and consistency, the guys gave you the right advice,
by doing what they speak of, keep everything paid off, always pay cash, then it just takes time.

Yup.

lawnpro724
07-10-2009, 11:51 PM
If you have money to buy a mower, take out a CD at your local bank then take out a loan against the CD to buy what you need and pay it back over time to build credit.

tinman
07-15-2009, 07:18 PM
use cash. Credit is like fire. Helps sometimes but can burn you too.