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    6 Replies Latest reply on Aug 7, 2008 4:11 PM by swtbreeze

    How to get loan with no credit

    wildfire Newbie

      Okay guys I’m a stay-at-home mom looking for funding. You know it's so frustrating to be bombarded with so many sure winning ideas ,but don’t have the funding to get my ideas off the ground, so i know you need a business plan , okay I got books on how to write one, next my credit score has to be good ,so my question is how can I get my credit score were it needs to be, when no one wants to take a chance with me so I can establish some credit.. So now you all see my dilemma...any advice is taken seriously .. Need help desperately "wildfire"..Thanxs

        • Re: HOW TO GET LOAN WITH NO CREDIT
          Milleisen Scout
          Do you know what your credit score is? Do you have derogatory credit or just a minimal credit history?

          The first thing you should do is get a copy of your credit report and make sure all the info is accurate. You can dispute any incorrect items and have them removed from your credit report. Beyond that there are some factors that can drag your score down.

          The big ones:

          number of inquiries in the past 6 months - if you apply for loans at every bank in town, constantly apply for credit cards, and open accounts at retails for that coveted 10% off, that all may hurt your score. If you have a large number of inquires, waiting for them to roll off should help your score.

          Percentage of revolving credit available -
          How much credit you have available to you as a percentage of your overall revolving credit will impact your score. For example, if you only have 1 credit card with a $1,000 limit and you transfer a $1000 balance onto the card, you will now have 0% of your revolving credit available. Creditors view this as a negative item because the closer you are to having 0% of your revolving credit available, the closer it means you are to having you credit cards "maxed out".

           

          Late Payments - For every 30 days that go by without a creditor receiving at least the minimum payment, your credit score will be negatively effected. There isnt much you can do about these unless they have been incorrectly reported.

          If your credit score is hurting due to items that can't be fixed immediately, perhaps you should consider borrowing from family, friends, a peer-to-peer lending network, home equity loans, and as a last resort, credit cards. While not ideal, these are all funding sources that budding entreprenuers have used to get the business up and running. Keep in mind that the rates on these tend to be higher, which reflects the high risk of failure among small businesses. But if you really believe in your idea, non-bank financing may be the way to go to make it happen. Best of luck!

          1 of 1 people found this helpful
            • Re: HOW TO GET LOAN WITH NO CREDIT
              wildfire Newbie
              thanx for the reply, ive been married for nine years and everything i did was in hubby name, so now that i want to retain some credit, i get turn down do to and inactive account. thanxs for your time..
                • Re: HOW TO GET LOAN WITH NO CREDIT
                  Milleisen Scout
                  The best way to establish credit is to get a credit card, use it to make regular purchases, then pay off the balance every month. Also, the next time you and your husband apply for a home loan or car loan, have it in both your names to that it reflects on your credit report. Establishing a credit history will take some time, but as long as you honor all of your obligations as required, you will eventually have a decent credit score. That's only 1 part of the qualifying for a loan (income and assets matter too), but its a vital part.
                    • Re: HOW TO GET LOAN WITH NO CREDIT
                      your_web_guy Adventurer
                      Bank of america has a wonderful secured credit line offer where you get a line of credit equal to the money you put up (min $500 i think) and then if you dont go over limit and pay your payments ontime for nine months it becomes unsecured so you get your deposit back.

                      i do have to dissagree with the above suggestion of paying it off every month. Just pay the payment and keep your balance low... the debt to income isnt going to be bad if you dont have any debt right now, but the payment history is what they are interested in with you probably. get as many unsecured cards you can and make the payment on them .. in six months you will have a beacon of over 600 easily.
                • Re: HOW TO GET LOAN WITH NO CREDIT
                  LUCKIEST Guide
                  HOW TO GET LOAN WITH NO CREDIT, Welcome

                  Tell is more about yourself. Go to Members page and share some more info.

                  Nothing wrong with being a stay at home mom and also running a business.

                  Don't be frustrated. Contact me at " pdeig@juno.com " or SCORE

                  I am a SCORE Counselor and can help you with a Business Plan.

                  Do you know about SCORE?? SCORE is FREE

                  Good luck, LUCKIEST
                  • Re: HOW TO GET LOAN WITH NO CREDIT
                    swtbreeze Wayfarer
                    Hello, wildfire

                    Do not get frustreated get even. I get that way sometimes now with by buisness. I started thinking of things to do different now since it a slow month but I do not quit and give up. I been working on my buisness plan for the last 3 month and have not got it right yet. I will and you will too. Working on getting my score in good standard so I can get loans, grants and investment for my business (Ms.V's Gift Shop) to exspand out and get more products in my store. Hang in there you WILL make it. GOOD LUCK