FCFM
Fix - Consolidate - Fund - Move
Here's how to legally move all your debts off of your credit report without paying it.
Optimal Credit Profile for Funding
Debt can be moved OFF your personal credit report without paying it. (It's still your debt, it's just not on or impacting your credit report anymore). Before you start acquiring funding, you will want your credit profile to look something like this for optimal results:
720+ credit score
Maintain a score above 720 for best results
0-9 hard inquiries
In the last 6 months (3 inquiries per bureau would be the max)
2+ years credit age
No derogatory marks (late pays, collections, etc)
5+ primary accounts
Reporting and a good mix of credit
This will have you in an excellent position in the eyes of any lenders, or anyone else looking at your credit profile. This is not a deal breaker requirement, but having your credit profile look like this will bring you the best results.
Fix Negative Marks First
If you have negative marks on your credit aside from utilization, you need to take care of those first. We are happy to help.
Establish Your Business Foundation
01
Open a business (on paper)
Doesn't have to be a "real business". Just form and file an LLC and get an EIN. Mind you that the business you are going to use to acquire funding should be a low risk business in the bank's eyes. Something along the lines of consulting or management will work fine. The funds acquired do not have to be used exclusively on the business that acquired them.
02
Open business bank accounts
Relationships matter, and finance is still very much a relationship business. Aging them, holding funds in them and using these accounts can be beneficial, but not required.
03
Start acquiring business credit and funding
Now, you are ready to start acquiring business credit and funding. You will get inquiries, but that's ok. Inquiries are easily removed.
The FCFM Process: Move Debt Legally
Here's how to legally move utilization (credit debt) off of your credit report.
If you have debt (specifically CC debt reporting to personal report), consider consolidating. Bridge loans are an option and we use these for our clients if the situation calls for it, typically as a last resort. A loan won't hurt your utilization rate, only revolving lines will. So consider an installment loan to consolidate. Any installment loan will do fine. And don't fret the terms of this loan, it will only be short lived. It's just a temporary holding for the debt.
1: Fix
Fix your credit report as outlined previously, disregarding the utilization. Just get the negative marks removed. You will want to do this first, and as best you can.
2: Consolidate
Consolidate with any installment loan(s). Pay off the credit debt with the installment loan. (Initiate an off-cycle report to have your new utilization rate reflect immediately, or wait until your next cycle date and report refresh.)
3: Fund
Fund, acquire business funding via business credit cards as stated previously.
4: Move
Move. Pay off the installment loan with these business funds, liquidate first if needed. Voila. You have moved your personal credit debt off of your credit report and onto business credit. Now you can hold the debt there without impacting your credit score, and you have it at 0% interest for the introductory period (which is repeatable).
That process right there on its own is worth thousands to know.
Make sure you put it to use.