Ok guys here is the situation. Me and a friend are going to start a business. We are looking to open next summer. He has horrible credit so we are keeping his name off of anything that may require credit or that credit could affect. We are going to form an LLC and I will be the only officer at this point. Everything that needs credit I will be applying for. I dont have great credit myself but I think it may be workable. I currently have a 653 EQ. My TU is generally about 15 points lower. I dont know about EX but know it is ALOT lower because my EXP has a paid collection that doesnt show up on EQ or TU. Here are the credit breakdowns:
EQ 653
7 open revolving accounts with approx 50% util (will pay down to less than 9% and have only 1 or 2 reporting a balance a couple of months before applying for max score)
1 open installment loan (student loan which will have about 6-8 months of positive never late payments by then, total loan amount $12,xxx)
No collections
1 past CC chargeoff that is paid
1 past finance loan for $500 that was charged off
3 past satisfactorily paid installment loans for between $500-$1000.
TU 63x?
Exact same as above EXCEPT that I have an open auto loan on TU that was opened in Aug of last year. Paid on time NEVER LATE. We are going to keep paying it as such until after we make the August payment so we have 1 year auto history then we are going to sell the car to pay off the loan and put the car payment amount in savings every month to help save up some money for the business
EXP same as EQ no auto loan but has the collection account.
I am going to need a $50,000 surety bond for my business before I can get the license and get started. My friend doesnt need one just me. Has anyone obtained a surety bond with scores similar to mine or lower? I am just trying to figure out what I am looking at if I can get approved and approx how much I can expect to have to pay. I would call and get a quote but I am waiting until I get my score as high as possible by paying down the revolving debt and by the first of the year I will gain another year on my AAoA. And as we all know its best to have the cleanest house possible when showing it. So I figure I will go ahead an apply in March ish that way I will have the max score and only be 2 months or so away from opening.
Any insight anyone can provide on experience or just knowledge of bonds would be greatly appreciated as we are planning the budget we will need.
Also I have no mortgage and no real estate. I am only 23 and have always rented. So collateral is non existent.
Thanks
