When borrowing as a corp, is the ein used or will they typically want to use your ssn?
Does the EIN (entity) have its own credit history?
Typically loans done for a corporation use the EIN for the loan. That being said, if the corporation is small (ie, the net worth of the company is not at least several times the loan value), the bank will probably want personal guarantees from the officers of the corp and they will use your SSN for that. These loans may not show up on your credit unless the corporation has defaulted and the bank looks to you to cure the default.
Wilson
Thanks for the reply.
That was my thinking as well but I wonder if you can tell me what entails that “personal guaranty”?
The personal guarantee has the same effect of co-signing a loan for someone whose credit is not good enough to get the loan on their own. The corporation is responsible for the loan, but if it defaults on the loan, the lender can come to you to repay the loan.
HTH
Wilson
In other words, dont bother going thru a corp. to get over your own poor credit because the personal guar. will simply go right back to checking your credit
Getting a corporate loan will not shield you from your own history. If your purpose is to get around you own bad credit, then there are other ways that will work better for you. There may be some loans that are available to a corporation that are not available to an individual. My suggestion would be to find a mortgage broker, explain the situation and see if they can help you find the loan that you need.
Wilson