| If you are looking to get started in real estate or | | | | or business loans on your own without having to use a |
| business, it's quite possible that you will need a loan to | | | | partner's credit.The way you build your own credit |
| get started. If you have bad credit, you might consider | | | | rating is by paying your bills on time, getting a "secured" |
| giving up before you've even gotten started. Well, I | | | | credit card and using it actively while paying it off fully |
| have good news for you. There are some things you | | | | each month of the year. By owning an asset such as |
| can do to get that first loan while you work on | | | | a building or business, you immediately improve your |
| improving your own credit rating for future | | | | FICO credit score. By paying off your credit cards |
| projects.One of the things you can do is to get a | | | | each month, your score rises. All of these things will |
| partner with good credit to join you in your real estate | | | | work together to get you a higher future credit |
| or business venture. This is called an "equity kicker" | | | | rating.For your real estate or business venture, form a |
| and is very popular in business. By doing this you use | | | | company that will put you on the payroll. This will give |
| your partner's credit as your own for the project | | | | you a source of income, a W-2 and an employment |
| you're involved in. What does your partner get in | | | | history. These things will raise your credit rating |
| return? In return for supplying the needed credit, you | | | | because you will have a traceable history. This is |
| will give your partner a portion of ownership of the | | | | something that lenders love to cite when approving the |
| business. Depending on the size of your project and | | | | loan that you've applied for at their company.What |
| how strongly you need your partner's credit rating to | | | | other things can you do to improve your credit rating? |
| get the needed loan, a reasonable percentage to offer | | | | Try joining respected real estate or business |
| will be in the range of 3% to 5%.Understand that in | | | | organizations. Not only will being a member contribute |
| most deals, you will be the working partner and your | | | | to your credibility, making you more credit worthy, but it |
| "good credit" partner will be the silent partner. He or | | | | will provide you with more knowledge about your |
| she will supply the needed credit and nothing more to | | | | business and help you to make important contacts |
| the deal. As an added incentive you can also offer | | | | within the industry. Remember, any dues you pay are |
| your partner a small portion of the profit from the real | | | | provable and tax deductible.So, don't give up your |
| estate or business project. Again, the amount should | | | | dreams of getting started in real estate or business |
| be in the range of 3% or 5%, depending on the | | | | just because you currently don't have the best credit. |
| profitability of your project.While this is a great way to | | | | Try using a partner's credit to get started and then |
| get started, it's important that you work on improving | | | | follow the steps above to improve your credit rating. |
| your own credit rating for future projects. Your goal | | | | Eventually you will be able to get business or real |
| should be to eventually be able to acquire real estate | | | | estate loans using your own good credit. |