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Business auto loan under c corp

Business auto loan under c corp

Hello. I am currently sole prop and changing into c corp this year. I want to purchase an escalade under the c corp business so that the debt does not report to my personal credit when I apply for a mortgage next year.

I am aware I will have to personally guarantee the vechicle. My question is if I can purchase this vehicle right away as soon as I am incorporated. I plan to do maybe a 20-30k down payment and my credit score has a strong history with 815 score.

Hoping I don't have to wait till after I file taxes and show the financials and all that?
9 REPLIES
Contributor

Re: Business auto loan under c corp

You could probably go ahead and do it now, If your personal credit is good enough you probably won't have to provide financial information for the business. And the loan will not appear on your CB, US Bank, and Ally do Business auto loan's and do not report to the individuals credit.

AMEX BCE ($34,500) CITI AAdvantage ($17,000) Region's Platinum Card ($12,000) Discover IT ($13,000) Macy's ($7,400) Chase FU ($10,000) TU:768 EX: 767

Re: Business auto loan under c corp

Nice I will give it a go, thanks.

Re: Business auto loan under c corp

Can someone help me with another question? I read on ally about getting a business vehicle loan under the business name with a guarantor but does it have to be a corporation? What about sole prop ein / LLC? If I used my sole prop ein would the car payment stay off my personal credit report?
Contributor

Re: Business auto loan under c corp

it is my understanding that you can get a business loan through Ally with multiple types of business structures. I think a sole prop/LLC is accepted by Ally, the only difference between the multiple business structures from Ally's standpoint is which resolution form you will have to sign. I believe Ally structures all their Business loan's in a way that the individual's credit is pulled and used to determine rates and gauruntee's the loan without it being reported to his/her CB.

AMEX BCE ($34,500) CITI AAdvantage ($17,000) Region's Platinum Card ($12,000) Discover IT ($13,000) Macy's ($7,400) Chase FU ($10,000) TU:768 EX: 767
Established Contributor

Re: Business auto loan under c corp

GM Financial as well as Ally and Ford Motor Credit and Nissan motor Credit all have commercial divisions. As far as commercial lending (not saying you have to buy a dump truck). 

Starting Scores 03/17/2017 EQ 491 TU 495 EX465 Currently 11/20/2017 EQ 578 TU 564 EX 562

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Frequent Contributor

Re: Business auto loan under c corp


FierceRabbit wrote:
Hello. I am currently sole prop and changing into c corp this year. I want to purchase an escalade under the c corp business so that the debt does not report to my personal credit when I apply for a mortgage next year.

I am aware I will have to personally guarantee the vechicle. My question is if I can purchase this vehicle right away as soon as I am incorporated. I plan to do maybe a 20-30k down payment and my credit score has a strong history with 815 score.

Hoping I don't have to wait till after I file taxes and show the financials and all that?

The red and the blue portions contradict each other. If you don't want the debt on your personal credit history then don't PG it. If you PG it then it is also your own personal debt and will be on your credit file.

 

You can't have it both ways, especially with a 1-owner business.

FICO 8 Scores
2/14/17,EFX - 614, 4 Derogs,TU - 621, 6 Derogs, EXP - 603, 3 Derogs 3/7/17, EFX - 579, TU - 595, EXP - 588, same Derogs 4/8/2017 EFX - 683, TU - 791, EXP - 605 All Chargeoffs removed from TU 5/8/17 EFX 750, TU 796, EXP 625 All chargeoffs removed from EFX 5/15/17 EFX 743; TU 794; EXP 715 6/1/17 EFX 762; TU 794; EXP715 8/15/17 EFX 762; TU 777; EXP 760
img src="http://i.imgur.com/Gfc4B.png" border="0" title="Silver Garden Club Member" width="40" height="40" align="right">

Re: Business auto loan under c corp

That is what I am trying to confirm and have been told otherwise. I spoke with 2 Ally representatives that both said it would not report to my personal credit. Above posters seem to think so as well. I guess there is only one way to find out. Vehicle comes in 8 weeks I will update once I know for sure. Thanks

Frequent Contributor

Re: Business auto loan under c corp


FierceRabbit wrote:

That is what I am trying to confirm and have been told otherwise. I spoke with 2 Ally representatives that both said it would not report to my personal credit. Above posters seem to think so as well. I guess there is only one way to find out. Vehicle comes in 8 weeks I will update once I know for sure. Thanks


What they told you may very well be the policy - as long as the payments are current. Miss a payment and see how many nanoseconds it takes that missed payment to be on your personal credit file.

FICO 8 Scores
2/14/17,EFX - 614, 4 Derogs,TU - 621, 6 Derogs, EXP - 603, 3 Derogs 3/7/17, EFX - 579, TU - 595, EXP - 588, same Derogs 4/8/2017 EFX - 683, TU - 791, EXP - 605 All Chargeoffs removed from TU 5/8/17 EFX 750, TU 796, EXP 625 All chargeoffs removed from EFX 5/15/17 EFX 743; TU 794; EXP 715 6/1/17 EFX 762; TU 794; EXP715 8/15/17 EFX 762; TU 777; EXP 760
img src="http://i.imgur.com/Gfc4B.png" border="0" title="Silver Garden Club Member" width="40" height="40" align="right">
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Re: Business auto loan under c corp

Ya I don't miss payments so that would not be an issue