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iuunc2003
Posts: 3
Registered: ‎02-15-2013
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Used PG from friend through credit building compaines now what?

Prior to the banking collapse we signed up with a credit building company in california that promised the moon...needless to say best friend needed to become "CFO" and used his SS# on cards..fast forward five years that company is no longer in existence and the payments from these cards are killing me.  He never signed any agreement for these cards as the company in CA took care of it.  What can I do?  Negoatiate the balances?  All cards have been closed.  we have paid balances down from 32000 to 16500 but we just cant do anymore and friend is finally talking to me after 2 years.  HELP me get rid of these.

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llecs
Posts: 32,881
Registered: ‎08-04-2007
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Re: Used PG from friend through credit building compaines now what?

If your friend used his credit info, how does that impact you?

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iuunc2003
Posts: 3
Registered: ‎02-15-2013
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Re: Used PG from friend through credit building compaines now what?

So If the old company says screw it...is he liable for the balances?  As he was PG athough prior to 2009 you could just use the interent and not need to sign a application, and that is how company in CA applied for credit in company and his name as CFO.  Or is it best to negotiate these balances?

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drkaje
Posts: 3,492
Registered: ‎07-25-2008
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Re: Used PG from friend through credit building compaines now what?

Is the personal guarantor's help needed to negotiate a new agreement?


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iuunc2003
Posts: 3
Registered: ‎02-15-2013
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Re: Used PG from friend through credit building compaines now what?

He would really perfer us to pay them off but right now cash flow is really tight and cant afford minimums...I would prefer to do it myself.  Does this affect his credit at all?

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Project17
Posts: 137
Registered: ‎11-21-2012
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Re: Used PG from friend through credit building compaines now what?

[ Edited ]

Yes of course this will effect his credit..Some business accounts also report on personal credit reports even when be paid on time. But as soon as you miss a payment it will report to his reports and also if you work some sort of deal with the banks it will report that way and effect his scores.

 

Did you legally make him the CFO? In terms of actually documenting this in the companies paper work and with the state if required.

 

Also if the creditors know the business is closed they could demand the entire balance be paid right away.. 

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Creditaddict
Posts: 20,972
Registered: ‎10-23-2007
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Re: Used PG from friend through credit building compaines now what?


iuunc2003 wrote:

Prior to the banking collapse we signed up with a credit building company in california that promised the moon...needless to say best friend needed to become "CFO" and used his SS# on cards..fast forward five years that company is no longer in existence and the payments from these cards are killing me.  He never signed any agreement for these cards as the company in CA took care of it.  What can I do?  Negoatiate the balances?  All cards have been closed.  we have paid balances down from 32000 to 16500 but we just cant do anymore and friend is finally talking to me after 2 years.  HELP me get rid of these.


I'm so confused by this because I had a business during these times and most products available then are not around anymore but what I don't get is how is "Credit Building" not sure why someone might pay for that back then because my dog could get credit then BUT... help me understand though please:

 

Credit Building and a friend and now debts don't make sense:

 

Building Business Credit is about getting the accounts you have or don't have to report to business credit, then slowly go from net 30's to store cards (Staples was huge back then at giving ALL business' at least $1k to start out, and on and on we go with store cards, gas cards, visa... but someone give PG really not needed back then to build business credit if you took the steps needed.

 

but really what im not getting is how you went from credit building to $30+k in debt and what that "Building" company has to do with it, they didn't actually give the loan did they? how many credit cards or loans are we talking? and have these reported to friends credit already or still hanging on for them not to report? who with?

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Project17
Posts: 137
Registered: ‎11-21-2012
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Re: Used PG from friend through credit building compaines now what?

Those "credit building " companies back then were huge but more for non business businesses then anything if you know what I mean.. You would see a ton of companies promising to get you business credit with no personal credit. Which was easily done if following th basic buidling steps. But no where as much as these companies promise or real true lines and cards.

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Creditaddict
Posts: 20,972
Registered: ‎10-23-2007
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Re: Used PG from friend through credit building compaines now what?


Project17 wrote:

Those "credit building " companies back then were huge but more for non business businesses then anything if you know what I mean.. You would see a ton of companies promising to get you business credit with no personal credit. Which was easily done if following th basic buidling steps. But no where as much as these companies promise or real true lines and cards.


Well that is why I'm kind of curious what banks and what types of accounts OP ended up with and how much did you pay this company to do this for you and lastly why didn't you do it on your own credit? why did the friend do it? Where you all confused/tricked what a PG was and why they would need a PG if they were any good?!

 

Instead of putting myself in debt on my business I should have been charging people to open them accounts along with my new accounts!! :smileytongue:

APPROVED? Great, I also have a friend I'm working for and Im going to need you to open another one of these cards and Ill give you the business name and address.

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New Contributor
Project17
Posts: 137
Registered: ‎11-21-2012
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Re: Used PG from friend through credit building compaines now what?

LOL......People do this all the time with companies.. If their credit isn't so good they have a friend or family member sign for the business and a lot of times the people signing don't fully understand what they are signing and what happens when the business can't pay their bills any more. Not to mention if the person signing for the company isn't actually part of the company legally it becomes very easy for the creditor to pierce the corporate veil and then the person trying to avoid the pg is now liable any way. Also Not to mention the PG'er lied on the application.

 

Real simple.. If your going to PG a loan for a business make sure you have some say and ownership in that company.


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