I’m fond of saying that traditional credit advice isn’t for you, the business owner… but maybe it is…
I’m running into more and more people who want to start small businesses, but also share some consummer issues on debt and have had trouble with impulse purchases and running up their credit cards on non-business expenses.
If this describes you, then first, stop it. Remember that credit is an addiction, and you’ve gotta quit using it cold turkey.
Second, and this is advice I’d only give you…the entrepreneur that also has a credit addiction… cut up those credit cards.
You wouldn’t leave ice cream in the freezer if you were on a diet, don’t put your credit cards there either.
You wouldn’t keep xanax in the home of a drug addict… don’t file the cards away either.
You wouldn’t hand an alcoholic a pina colada… don’t apply for new credit either.
Don’t close the accounts, but get rid of those cards.
Once you remove the temptation, suffer the withdraws and get yourself back to being financially healthy, THEN, and only than, can you consider effectively growing credit for your business. Until then, your business is just an enabler.
Here’s a quick list of seven ways to mortgage a home after you’ve been discharged from bankruptcy.
1. private mortgages- find a private individual with money to lend that likes you. You’ll pay higher interest, but you’ll be a homeowner.
2. sub prime lenders- you’ll pay even more interest than with a private mortgage,
3. land contracts– buy a home directly from the owner and they may be willing to sell to you on land contract, which means basically that they act as the bank. It’s similar to #1, except the lender is the homeowner you’re buying from.
4. first time homebuyer programs- many of these will accept you out of bankruptcy
5. 20% plus down payment- you can always make up for poor credit by taking on more risk. The more money you can put down on the property, the easier it will be for you to find a loan.
6. get a co-signer with good credit- yep, it’s time to again consider going back to mom and dad to ask for help. It makes them feel needed 
7. Don’t. Yes, that’s right… one way to mortgage a home after bankruptcy is don’t do it. Wait 24 months and it will be a much easier time for you.
