OfflineOk, so I have applied for and got one credit card to start building my credit. I applied for another in my LLC(of course my name had to be on it too), and they declined it stating there was a foreclosure on my credit. How can a foreclosure be on my credit when I have been approved for a Deed in Lieu? I know it is ultimately going to be called a foreclosure as far as the bank is concerned, but I was told that a DIL would not be as bad on your credit as a foreclosure. That's why I chose to do it in the first place. So should I call them and dispute it or are they right to report it as foreclosure? This really upsets me!!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
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Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Since you weren't getting any answers I did some research and found this article with, unfortunately, this statement. Following is a link to the article.
"• It will affect your credit score just as badly as a foreclosure will."
Read more: http://www.houselogic.com/home-advice/facing-foreclosure/foreclosure-alt...
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
it doesn't really matter if it's a foreclosure or a deed in lieu, or even a short sale... any of them will affect your credit score; but don't get hung up on this too much, because even with a foreclosure, you can boost your credit back to the 700's within six months if you start using your credit cards 'responsibly' every month.
Start applying for a credit card with Radio Shack, Home Depot, Staples, then after a few months, apply for Visa or MC... (even if you're applying for credit for your LLC, credit companies will use your personal credit to issue credit to your business)
Here's a link to a good article about FICO scores and foreclosures...
http://www.washingtonpost.com/business/economy/whats-worse-for-credit-sc...
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Valerie, I did apply for one with Capitol One. They sent me a pre approval and I was accepted with a $300 limit. That was a month ago. Then I applied for another one today that was referred to me by LegalZoom and they declined it because of F/c. I think during that time, the F/c was added. Do you think those businesses don't check your credit report or why would they give me credit if I have a F/C?
I'll check out the website.
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Karen and Val, you both gave me the same website and I did read it. What a bummer. I still feel like they should have listed it on my credit as a DIL instead of a F/C. That's just wrong!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Shirley,
that is pretty funny about Karen and I giving you the same site ... as they say: 'great minds think alike'
Regarding the credit; what you need to do is keep using the credit card that you currently have and pay it in full every month; before you know it, they will increase your limit...
as far as Staples and Radio Shack, they are not as difficult to get credit as Visa and M/C. When I first opened my LLC I wasn't able to get a Visa, even with good credit, because it was a new business; you need to build the credit for your business little by little...
I don't think it matters so much whether it's a DIL or FC; what affects your credit is the non-payment of the debt, regardless of what it's called... just start building your business credit, and keep moving forward...
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Here is a thread that Tammy started a while back about building business credit.
http://www.deangraziosi.com/real-estate-forums/financing-and-credit/5696...
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"