How to Create a New Credit Bureau File

Despite rumors on the Internet, the only legal way to secure a new credit file is by obtaining a Federal Tax ID number. This number is almost exclusively extended to businesses for the purpose of separating business owners' information from business information. Creating this new credit file is a lengthy process, but can offer advantages to a business.

Instructions

How to Create a New Credit Bureau File

1

Operate a strong, profitable business. Without a fully operational business, the federal government will not grant you a Federal Tax ID number. While the extension of a federal ID number is not contingent upon the success and profitability of your business, it must be a legitimate business. Be sure to file as an LLC, Sole Proprietor or S-Corp.

2

Apply for a Federal Tax ID number. A link is provided under References. The application requires you to disclose the name of your business, the nature of the business, the chief executives, the stakeholders and shareholders, if any, and any personal information relevant to the business.

3

Maintain a strong business. Commercial credit works in nearly the same fashion as personal credit--that is, lenders are far more willing to lend to companies with strong, positive credit histories. Most lenders will not lend to a business that is less than three years old, and almost never will lend to a business that has no credit history.

4

Apply for smaller lines of credit. Obtaining business credit cards is the easiest way to begin developing a credit profile for a business. The application process is far less rigorous when applying for unsecured credit lines, and therefore you will most likely not need to disclose the majority of your financial statements. Use business credit cards liberally, but be sure to pay on time and keep your balances low.

5

Apply for larger lines of credit against the business itself. Be prepared to surrender all financial documents proving the viability and financial health of your business. With secured and unsecured credit history under your business' Federal Tax ID number, you'll have a second open credit line.