How to establish credit

Discussion in 'Starting a Lawn Care Business' started by m&mmowing, Jul 6, 2009.

  1. m&mmowing

    m&mmowing LawnSite Member
    Posts: 92

    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?
  2. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

  3. Ryall Landscaping

    Ryall Landscaping LawnSite Member
    Posts: 128

    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.
  4. PNSLawncare

    PNSLawncare LawnSite Member
    Posts: 6

    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.
  5. browningv308

    browningv308 LawnSite Member
    Posts: 160

    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
  6. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    Get a walmart card, you have to start small, there is NO magic way to build credit, just the ole fassion way....
  7. bigmudder77

    bigmudder77 LawnSite Senior Member
    Posts: 297

    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
  8. supercuts

    supercuts LawnSite Silver Member
    Posts: 2,785

    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.
  9. Duffster

    Duffster LawnSite Bronze Member
    from Midwest
    Posts: 1,193

    Find a GOOD business bank to deal with, Pay cash and forget the credit cards.
  10. benjammin

    benjammin LawnSite Senior Member
    Posts: 251

    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.

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