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UCC filing?

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Stugotsv10
Frequent Contributor

UCC filing?

Reading that a UCC filing CAN and in fact does help personal credit, is there any truth to this? I think if owed and if this is a thing it can be a great way to build credit 

4 REPLIES 4
Anonymous
Not applicable

Re: UCC filing?

While this post actually belongs in the Biz section, I wouldn't actually try to get a UCC filing on purpose in a mistaken attempt to "help" your business. Having one can hinder one's ability to secure lending.

Message 2 of 5
SouthJamaica
Mega Contributor

Re: UCC filing?


@Stugotsv10 wrote:

Reading that a UCC filing CAN and in fact does help personal credit, is there any truth to this? I think if owed and if this is a thing it can be a great way to build credit 


No way.

A UCC filing is a lien.


Total revolving limits 657200 (536700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 3 of 5
Remedios
Credit Mentor

Re: UCC filing?


@Anonymous wrote:

While this post actually belongs in the Biz section, I wouldn't actually try to get a UCC filing on purpose in a mistaken attempt to "help" your business. Having one can hinder one's ability to secure lending.


 

I moved it here because it belongs here.

 

Message 4 of 5
GApeachy
Super Contributor

Re: UCC filing?


@Stugotsv10 wrote:

Reading that a UCC filing CAN and in fact does help personal credit, is there any truth to this? 


.......it's a mark on your biz credit to let other lenders know, in case of default (first come; first served) the first creditor to file a UCC will collect assets first.  This, as others' posted, can inhibit further funding or securing even a small loc.  So when considering a loan, usually a sizable loan, ask first.  Also, after a loan is paid off you need to always follow up with the creditor to have the UCC Filing terminated or you may have problems securing funding because it will look as if you and your business still owe on outdated UCC filing and could scare off potential lenders, they may see it as not having the ability to secure collateral on a first basis.

As far as personal credit score, it doesn't affect it.

My Take Home Pay Don't Take Me Home
Message 5 of 5
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