Hi Nathan, I watched the 09 edge video of you regarding creating an EIN and the question I have is when I open my bank account under my EIN is it true they will use my personal credit as a baseline when considering say for example, a refinance on a house that has been paid for in cash. The reason I ask is that I was speaking with a coach last night and there seemed to be conflicting information in my mind regarding using the information used when applying for something using my ein vs my personal credit. I was told last night because my business is new, the bank would reference my personal credit to get a baseline when considering approving me for a refinance. Is this true? I was under the impression the bank would not access my personal credit and look at my ein as if it were say, a kid in college who has had no credit history applying for his first credit card.

I received this PM and wanted to allow everyone to gain the knowledge.

When dealing with an EIN only loan it is true that most banks will only lend if you use your social security number. This way the bank will be able to chase you down if you do not pay.

The objective is to put money into your checking or savings account that is equal to the amount of money you want to borrow against your EIN. If you have $1000 in savings and ask for $1000 for a loan the bank should feel comfortable giving the loan because they have nothing to lose. Once you have done several loans similar to this the banks will often release the collateral.

It seems that the smaller banks, those with 5 branches or less, are able to do these types of loans.


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