Running a business with personal bad credit can be frustrating. It can be difficult to open a checking account if your on the ChexSystems. You may also become worried of your
assets being frozen because of judgments.
However, by filing the correct paperwork and incorporating your business, you will be able to open up a business checking account under the corporation's name and using it's tax identification number instead of you own personal social security number. This will also protect the companies assets and funds from being frozen by any debt collector looking to collect the money you may owe them. Even though you may have ownership of the company, the corporation is considered it's own entity and separate from your own credit, therefore it is safe from your personal creditors.
If you are a small business, check out Getting Approved For A Bad Credit Checking Account. This source contains a list of banks that approve people for checking accounts that are on the ChexSystems.
Did You Know? When small businesses are starting up, many use their personal credit and finances to get their business going. But they should establish a credit history by putting expenses (such as a business phone line) in their business name and using a commercial bank account to pay their bills. If you don’t have a business credit file, establish one by applying for a D-U-N-S® number. Small businesses should apply for a D-U-N-S® number, a unique business identification number, as soon as they start their enterprise to start the process of creating a business credit file
You may also want to read about Getting Business Credit
Although all information has been written in good faith and reviewed, please email us at [email protected] to report any inaccuracies.