How to Establish Tradelines For My Company

 

Getting tradelines for a company is not, always, the same procedure as getting tradelines for your SSN. In order to get tradelines for your company, it’s important to first know what kind of business you are starting. Are you a sole proprietor, or a sole prop LLC? In that case you will use your personal SSN and can put any tradeline on you like. So in that case figuring out how to establish trade lines is quite easy, just follow the normal procedure of adding a piggy back tradeline to your credit and then getting approved for a business card or loan through your SSN.

If your credit needs fixing, then that, also, is the same procedure. Get the credit cleaned, put trade lines on, then get approved for accounts in your name. Getting your credit cleaned can be complicated, so you’ll want to watch out for scammers who take your money after first promising you the moon. The term “credit sweep” gets thrown around a lot in credit repair, but this is just a catch-all term for removing all negative data. Some negative data cannot be removed, like late payments and bankruptcies, but removing these items is not legal and you should be very careful about doing business with people who engage in illegal activity.

If you are looking at doing a different type of business, such as a corporation or standard LLC or LLP, then you will need to get set up with an EIN (Employee Identification Number) through the IRS website. This will set up a separate entity that does not reflect any credit history and only takes five minutes. Some places will charge money for this service of counseling you on how to begin a business, but it is a fast google search away and you do not need to spend money to find out how to do it.

You will need to utilize your SSN to get the EIN, but the profiles are not connected. When acquiring business credit, these entities require you to be a personal guarantor using your SSN if you do not have business credit established. So in essence it is still the same procedure of getting your SSN in order so you can establish business credit, which does not report to the standard three credit bureaus Trans Union, Experian, and Equifax, but reports to Dunn & Bradstreet. This is the equivalent of the credit bureaus in the business credit world.

Do you need to put a different type of tradeline on to get approved for business credit approval? No, but inevitably people usually put on our most powerful tradelines because they are trying to get approved for large business loans. But here’s some good news, most of the time when getting approved for personal credit cards, the limits may not be very high when you are just starting out, but business credit cards are usually much higher, think 15-25k. You may not even need “good tradelines” to accomplish these kinds of limits as long as you have your credit in order. What you get approved for is related to score and cash flow (what you can prove for income with tax returns, W2’s, etc). Do you need to get $25k in tradelines to get approved for 25k in lending? Not usually, so if you are in the market of obtaining a tradeline for a business, it’s always a good practice to get a free consultation to see what is best for your situation.