I have not start myself a LLC Company yet. I have a very bad credit personally.
My questions is: If I had started a new LLC Company, would i get a better chance of getting a loan just by using my new LLC Company’s name for my residential and commercial deals? Or would the all types of lenders still consider my personal credit records in order to determine if they should lend me money?
If the lenders decide to give me money based on my new LLC Company, how much will my LLC Company get qualified for?..i’m just only wondering…
Any help would be greatly appreciated!! :help
Starting up an LLC or any other business entity won’t solve your credit problems. You will still be required to personally guarantee mortgages in your LLC’s name. That will cause the lender to look at your credit. Once your LLC is running and standing on its own, you can get loans based on the LLC but it will take some work to get to that point. In the meantime, you’ll be personally guaranteeing things.
The question here is why is your credit bad and what can you do to fix it?
You’re not magically going to look better or more sophisticated to a lender just because you set up an LLC if your personal credit is in the crapper.
In the beginning, your LLC will be granted a credit amount commensurate with what you as an individual could borrow.
Also, the thing Justin did not ask is “what changes have you made in your life to avoid more bad credit”. Unless your credit is poor due to not having medical insurance and being in a bad car accident or having cancer you probably need to ask yourself that same question. Forming an LLC will not save you from going down the same road unless you fix the problems that caused you to have bad credit in the first place.
What you need to do is click on this link to another forum thread and read it, and follow the advice given.
Thanks christopher w and justin0419!!
I really appreciate your comments and suggestions. :biggrin