Despite its good intentions of preventing tradeline fraud, legitimate tradeline businesses like MyCreditHeadquarters.com < http://www.mycreditheadquarters.com/> fear the new credit scoring system by Fair Isaac Corporation, FICO 08, will not dampen the appetite of scammers for preying on businesses desperately needing investment capital.

What you should understand about scammers is that they prey on desperation. And they are very creative too. If it’s not one form of scam.

My Credit Headquarters has been in business long enough to know how many of America’s new businessmen fall victim to scammers. Desperation prevents the desperate businessman from doing his homework.

As it is, the major challenge of small business owners is the lack of credit history and thus, a low credit score, if any. In real life situations, this lack prevents them taking out a loan or a line of credit. Most business lenders are only willing to lend large amounts to businesses with FICO business credit scores of at least 80. Getting a score that high does take time. What happens most of the time is that a new business owner will pay to become an authorized user of a tradeline or credit line of an established business with a high credit score.

A new business does not have the time to work at increasing its credit score. Actually, it can’t afford to wait, it needs capital right away.

Tell-Tale Signs of A Scammer

Scammers who purport to offer business tradelines often guarantees a new business owner a credit score of 80 almost instantly. The key to knowing if a business tradeline is a scam is the sense of urgency it presents on its website. Often, the potential victim is made to feel that a business tradeline is the only way to solving a credit situation and that the business tradeline must be purchase immediately.

This is what sets us apart from the scammers. We take the time to explain the process to our clients and we provide other options if needed.

As is usually the case, scammers will make promises to improve the credit score of a business owner, but will disappear after getting the payment. The victim will see that his credit score has not improved.

FICO 08 and the Trail Of A Scam

FICO 08 as an updated credit scoring system completely disregards authorized user accounts in calculating credit scores. This slight adjustment in the scoring is expected to affect millions of Americans who are banking on authorized user accounts to boost their credit scores. My Credit Headquarters fears FICO 08 might just give birth to a new form of scam that preys, again, on the desperation of new business owners.

Aside from tradelines, the only other option for small businessmen is to personally guarantee the loans of their businesses. Now there is a growing awareness of how dangerous this is. So we can really expect new business owners to seek out options other than personal loans and scammers can be creative.

About MyCreditHeadquarters.Com

My Credit Headquarters is in the business of helping companies take their businesses to the next level by providing the tradeline resources necessary for business financing. New and existing business owners can know about the next generation in credit strategies by visiting the site http://MyCreditHeadquarters.com/ for more information. 

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