passing debt along to better my rating

MikeBrooks

I’ve opened a small limited company and have taken out a loan of 19K. Now I wish to raise the company’s credit rating as quickly as possible as there are a couple of things I need to take out that rely on me having a good credit rating.

Now im young so I don’t have a credit rating at all (the loan was taken out by co-signing) and ive heard there are ways of passing debt along credit cards and other things that will greatly increase my credit rating.

Any help on this subject would be great.

MikeBrooks

25 views and not one responce? whats up guys?

grumbler

MikeBrooks wrote:

... ive heard there are ways of passing debt along credit cards and other things

What 'things' exactly?

that will greatly increase my credit rating.

Where exactly have you heard that this will greatly increse your rating?

Any help on this subject would be great.

It is not that easy to 'pass the £19K debt' along credit cards, particularly without good credit history and confirmable good income. In theory this is possible and can save you money. Are you sure that you can easily repay your loan without penalties? Are you aware that even minimum payments for majority of credit cards is 2-3% of the outstanding balance (£380-£570) in your case?

MikeBrooks

Where exactly have you heard that this will greatly increse your rating?

only from colleagues at my current place of work. No one with any real personal experience. But ive heard a lot of different people say this will increase my rating which is why ive come here to get to the bottom of it.

Are you sure that you can easily repay your loan without penalties? Are you aware that even minimum payments for majority of credit cards is 2-3% of the outstanding balance (£380-£570) in your case?

Yes, the bank im taking the loan from is happy with me paying it back in full in three months. As for the credit cards its not a problem if i use one with a temporary 0% is it not?

The thing is im not looking to save or make money by doing this. There are things i need to take out on credit through the company. like ive said ive been told by people that the more finical transaction i make the more the credit rating raises. If this statement is true surely its possible to manipulate the system by taking out credit i know i can pay back?

Im young and nieve i know but help in this matter would be really appreciated.

jimclark1967

MikeBrooks wrote:

only from colleagues at my current place of work. No one with any real personal experience. But ive heard a lot of different people say this will increase my rating which is why ive come here to get to the bottom of it.



Yes, the bank im taking the loan from is happy with me paying it back in full in three months. As for the credit cards its not a problem if i use one with a temporary 0% is it not?

The thing is im not looking to save or make money by doing this. There are things i need to take out on credit through the company. like ive said ive been told by people that the more finical transaction i make the more the credit rating raises. If this statement is true surely its possible to manipulate the system by taking out credit i know i can pay back?

Im young and nieve i know but help in this matter would be really appreciated.

You still have to make the minimum payments on a credit card even if the debt is at 0%

Whilst it is true that building up a history of paying off debts will improve your credit rating, I'm not sure how "passing debts along" will help this. Such techniques, used by stoozers, will damage your credit rating rather than improve it. If you just want to improve your rating then making the loan repayments on time will accomplish this. Time moves at the same rate for everyone, you can't "fast track" a credit history.

Best of luck with the business, let us know how you get on. :beer:

JC

Bloke_with_a_simple_life

MB...

I think you need specialist advice on administering a business.. maybe your local council have a business support unit who can assist and help review your business plan and income/expenditure plans.

From the threads, it is unclear whether you are trying to "improve" the credit rating of your company or yourself (or both)!

What I do pick up is that you may be trying to mix up personal and business finances - a danger if trying to run a company and a personal bank account, the finances will become a spiders web and all tangled up too much, creating issues trying to work out if your company is doing well or not.

My advice - don't spend too much time trying to fast track the credit scoring piece - instead fast track your way out of the "young and nieve" position and seek out people who are in a position to assist you in this endevour.

Good luck!