Cheating credit score system?

[Roparadise]

If someone has a low credit score and they start an LLC or other type of business that loans out money with 0% interest,and they loan themselves money and report it to the Credit Bureau's that they are making the payments on time. Could they boost their score fast?

1. I invest money in the company
2. Company gives me loan at 0% interest
3. I repay the business
4. Keep repeating.

 

[neeka387]

Might not be much help here but I'm assuming that the costs of starting a business and establishing the appropriate licenses to loan money as well as to report to the appropriate credit bureaus would be much more expensive than applying for a credit card using it for gas or just to make a $10 purchase or so and making the monthly payments on time.

Hopefully someone with more information will come along and post.

 

[upl8t]

There are multiple factors going into the calculation of a credit score.

Types of credit you have i.e. car loan, line of credit, credit cards
How long you've had credit
% of credit available that you're using
Payment history i.e. late payments
Recency and frequency of new credit and inquiries

Adding 1 loan won't make a major impact and could actually lower your score depending how it's done.

 

[jonnyquest]

If someone has a low credit score and they start an LLC or other type of business that loans out money with 0% interest,and they loan themselves money and report it to the Credit Bureau's that they are making the payments on time. Could they boost their score fast?

1. I invest money in the company
2. Company gives me loan at 0% interest
3. I repay the business
4. Keep repeating.

Somebody correct me if I am wrong but in order to add your LLC company name to a credit report/bureau I think you need to subscribe to Experian and the others. Got to think it may be a monthly dues type thing.

Thought about this method also many years ago when helping others with credit repair ... just never did it.

Here are some business contact # for the 3 big ones here in the USA

http://www.transunion.com/corporate/business/contactus/request-information.page

http://www.experian.com/small-business/services.jsp

http://commercial.equifax.com/?elqPURLPage=493


JQ

 

[jerry_lewis]

To go off topic for a bit...

Just curious, can you start a Joint Partnership with somebody if one of you have bad credit?

 

[Roparadise]

To go off topic for a bit...

Just curious, can you start a Joint Partnership with somebody if one of you have bad credit?

It's up to the other person whether they are willing to be in a joint partnership with you or not.


Does EU credit system work different then US credit system? I know when a person from another countries moves to the United States they have to start all over with building credit if they want a u.s. credit card. But If I get my Irish citizenship completed and get a tax number from Ireland, and apply for a credit card in Ireland,will it be like I never had credit before?