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Cheating credit score system?

Discussion in 'Business & Tax Advice' started by Roparadise, Oct 3, 2011.

  1. Roparadise

    Roparadise BANNED BANNED

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    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.
     
    Last edited: Oct 3, 2011
  2. neeka387

    neeka387 Registered Member

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    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.
     
  3. upl8t

    upl8t Regular Member

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    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.
     
  4. jonnyquest

    jonnyquest Regular Member

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    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
     
  5. jerry_lewis

    jerry_lewis Newbie

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    To go off topic for a bit...

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

    Roparadise BANNED BANNED

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    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?