Having business tradelines that report is important if you want to raise your business credit score. If you have no tradelines, you can buy them to artificially boost your score. TransUnion has a program called My Smart Move that lets you do this. You can also buy tradelines with companies such as Divvy and Credit Builder. However, it’s important to know exactly what you’re doing.
‘Piggybacking’ tradelines
Piggybacking is a form of borrowing that is both legal and a good idea. A piggyback account is an authorized user on a credit card, loan or mortgage. The best way to do this is by opening a joint account with a loved one.
The credit card company or mortgage lender will review your credit and make a decision on whether or not you qualify. This process may also involve reviewing your personal credit. Some banks frown on this practice, although others are more accommodating.
For example, a new business may not have the necessary credit history to qualify for a business loan. Using a personal credit card for business expenses is an alternative. If the business can get an authorized user on a credit card, the chances of receiving a favorable interest rate increase.
On the other hand, a piggyback mortgage loan is a type of home equity line of credit. You can obtain this kind of loan by providing a security deposit.
Buying tradelines to artificially boost your business credit score
Business tradelines are a great way to boost your credit score and establish a positive payment history. A tradeline can come in many forms, from credit cards, to loans, and even utility bills.
The best way to determine which one is right for you is to speak with a professional consultant. They can help you determine the right amount to spend. Some companies offer business tradelines no up front fee, while others charge a nominal fee later on.
Purchasing a tradeline can be a big expense for a small business. It can also raise red flags with lenders.
Tradelines are a logical way to improve your credit score, but there are drawbacks to buying them. Lenders may be skeptical about the legitimacy of the accounts you are purchasing. And the interest rate can be sky high.
There are better ways to go about boosting your business credit score. Using the right tools can give your business the advantage it needs to get the funding it needs.
Divvy’s credit builder card
If you’re a small business owner looking to boost your credit score, you may want to consider a Divvy’s credit builder card. This business credit card helps you build your business credit with a simple online application. Divvy also reports your transactions to a number of business credit bureaus. It’s an ideal way to get your business credit on track.
Divvy offers two different types of cards. One is for startups, and the other is for established tradelines. You can apply for a Divvy card through the Divvy website or by phone.
The Divvy credit builder is designed for new businesses that don’t have a business credit history. However, there are certain qualifications you need to meet. These include having a US citizen as the sole owner of the business, and 25% ownership in the company.
Applicants can qualify for a Divvy’s credit card by providing their business tax ID, name and EIN as well as the type of line of credit they wish to receive. Once they’re approved, they’ll be able to use their Divvy card for all of their expenses.
TransUnion’s My Smart Move
TransUnion’s My Smart Move is a great service that provides tenants with an easier way to get their credit reports and other information. Whether you’re a landlord or property manager, you can use the service to check on potential renters. It’s a paperless method that allows you to quickly and efficiently find out the background of any tenant.
TransUnion uses data from both state and national databases to compile your report. You can choose from a basic package that includes income verification, or a more comprehensive plan that offers a full credit report. The company also offers a criminal report option. A Premium version includes an Income Insights report that indicates whether or not you need to verify the tenant’s income.
RentCheck, which integrates with TransUnion’s My Smart Move, is another option for landlords. Their basic tenant screening package includes an income check, a credit report, and a judgment search. They offer a higher volume discount to landlords with more than 50 rental properties.