Credit Rating On Line

I have seen a "seasoned company" for sale that has an A1 Dun and Bradstreet rating. How much credit line and what type of terms usually can a company with this credit rating qualify for? The seller states that it could probably qualify for 1mm with an A1 rating.

The rating is a factor, but there are many other factors such as assets, liabilities (including the aging of the AR/AP). You can get an appraiser to value your in/tangible assets. But the biggest factors are cash flow, EBITDA margins, and total revenue. Assuming your business is doing 1MM in EBITDA on 20MM revenue, you can secure for maybe 2.5 times that amount. It all depends on the dynamics. Also, if working capital is a crucial need, you can hire an investment bank to find you a mezanine lender that specializes in those deals. They usually give higher multiples on working cap if your business is on the up and up. Good luck.

2007-08-18 12:28:33 by Dax

Free report at: www.CSBCards.com - (*24hr Recorded Message (775) 473-9014*) CREDIT REPAIR: info from the credit secrets bible Rebuild Credit ...

Line of credit currently at $60,000, but want to increase to $150,000 just in case I ever need it. If I never really use it, does it still affect my credit rating?

If you don't use the loan and manage your money, I think the increased amount can work against you. The credit companies measure your income/or worth against the total credit you are carrying. If you are carrying more credit than you can afford, you are a higher risk. If, on the other hand, you have plenty of income to handle such a high loan, it probably will have no affect until you use it.

2007-10-11 13:26:58 by DRESS

Price: $5.95 $5.95

I don't need the credit line really just want to know if keeping it open is bad or good for my credit.

It could be either, but probably good depending on the length of your credit history. If it's an old account that helps your credit. Also your ratio of credit balances to credit limits will increase if you close it, which could increase your score.

2007-08-30 11:43:54 by lehigh_1999

Price: $75.00

Increasing your credit limit with an existing account will not drop your credit scores. It will help your scores.

Adding new accounts could drop your scores if you have a thin file - short history and only a few accounts in good standing.
You would take a hit for the inquiries and then if approved you would take a hit when the new account reports.

If you have a thick well rounded file with long history on many accounts, you may not see much of a hit or you may actually see a rise when the new account starts to report.

2007-06-29 01:39:52 by svari09

How does increasing credit lines on my credit cards affect my credit rating?
* Assuming of course I pay all the balances off clean each month. I should rephrase to, "how does having higher AVAILABLE credit affect my credit?"

Increasing a credit line is likely to improve your score, all else staying the same. One of the main factors in your score is the ratio of balances to credit lines. The lower that ratio is, the higher your score will be. You can lower the ratio by either decreasing the balance or increasing the credit limit.

However, if you immediately start using the new available credit, and the % of your credit line that is used remains the same (i.e. higher balances, as well as a higher credit line), it is likely your score will not improve.

So, as long as you don't use the extra credit that is available, it's good for your credit score.

As far as having 'too much available credit' to qualify for a mortgage - don't worry about it. I have nearly twice my annual salary in available credit and have never had a problem qualifying for a mortgage. The key is, I pay my balances off each month and I rarely use more than 2% of the available credit on a monthly basis. If there is a problem with having too much available credit, the mortgage lender will ask you to close an account. Don't do it until they ask you to, though.

2007-07-30 17:03:43 by extremecentrist