Construction Loans Bad Credit Not A Problem
The question of the day seems to be, “Can one get construction loans with bad credit”?
When I hear this, 99% of the time they are referring to bad PERSONAL credit, not bad BUSINESS credit. So to answer the question, if you have bad personal credit, all one needs to do is build good business credit to get a construction loan. Now, as Ive said in previous videos, this doesnt happen over night. In the case of a construction loan, It would take a couple of years for one to build excellent business credit from the ground up. And it really needs to be set up properly so that bad personal credit doesnt become an issue. A construction loan is generally going to be handled as a bank loan or line of credit, and not a mortgage. The current lending criteria for such a bank business loan would be the following: over 12 business creditor accounts reporting favorably with a 6 month minimum payment history on those accounts. In addition, an 80 Paydex score, and two years in business from the date of incorporation. So again, its not a quick fix, but its certainly quicker than waiting 7-10 years for certain personal credit negatives to fall off. And if you have incorporated already, than the process is much quicker. I had a BK and several negatives on my personal credit, but was able to successfully build excellent business credit, while simultaneously working on cleaning up my personal credit. This is really the ideal approach. I was very fortunate to have professional help in cleaning up my personal credit, because, lets be honest, who really wants to deal with the credit bureaus? For me, it is right up there with going to the dentist, cleaning up cat yak, and dealing with the IRS.
I was really lucky, as it was a company referred to me by a business partner, and I was happy to pay the per month to let someone else handle the headache for me.
If you found this inside information helpful, I have put together more video tips as well as a Free 5 day email Course on how to do establish perfect Business Credit from the ground up. It is a step by step, from A to Z email course on how to do it right the first time. I also include the fantastic company that cleaned up my personal credit for me. They really were a life saver. Just visit my website at http://www.BuildBizCredit.com