if a person where to apply for an employer identification #, would this open a new line of credit that would not be effected by that persons ssn or personall credit rating?
2006-09-17 04:19:10 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Nope, that won't help you. The EIN would just be added to your credit record as another identifier, that's all.
If you are starting a business, the business would have its own credit rating. Since there are no records to begin with, the credit rating would be very low and you would have to personally guarantee any lines of credit extended to the business. At that point, your personal credit rating would come in to play.
Ignore the scamsters who tell you that it will help. They're full of dog droppings.
2006-09-17 05:21:12 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
A 'person' can't apply for an Employer Identification Number. You must be a business, with a business license. Even then it doesn't necessarily open a new line of credit until the business has established itself and has filed taxes. I started my business in 1999, and just recently got listed in Dunn & Bradstreet, so it does take a while. Most lenders want to see three years worth of tax papers to extend credit.
2006-09-17 05:46:01 · answer #2 · answered by oklatom 7 · 0⤊ 0⤋
Not necessarily. Many business credit companies will request the SSN of the guaranteur of the company (usually the owner) to verify credit. So if yours is really bad, it may not change your chances of getting credit. The EIN wil have a seperate rating, but until it's established, you will usually still have to give both to get lines of credit.
2006-09-17 04:29:28 · answer #3 · answered by Randi L 5 · 0⤊ 0⤋
You can't do that! That's considered fraud and land you in jail!
Unless you're planning to open a business, this is illegal!
If you need to fix your credit, fix it.
2006-09-17 04:29:33 · answer #4 · answered by Celeste 6 · 1⤊ 0⤋