Improve your personal and business credit using UCC Filings

Credit enhancement using UCC filings:

Any document that is filed in your state is considered a public filing. That document is now public knowledge. Anyone can search these public records and find these documents/information.

Credit bureaus are connected to a public filing database that is updated periodically (varies by state). They automatically receive all lien and bankruptcy information after it is filed at the state or federal county level. Ever wonder how certain car dealers or property managers get things to show up on your credit report?

UCC stands for Uniform Commercial Code. UCC filings are a VERY powerful tool for improving business and personal credit. The surprising thing is that most people do not know about this technique. Well. most people don’t even know that you do NOT need a lawyer to incorporate a business. Lawyers can charge you up to 4 times more than if you incorporated. There are many such examples, lawyers being paid for something that you can easily do yourself. You’ll be surprised how easy some of these things are. Also, the purpose of UCC filings is NOT to build credit – the credit building part is a by-product. If you really think about it, most credit building methods are just that.

What you need to understand about UCC filings is that they are not new. Public presentations, in one shape or form, have always been around. The UCC filing basically shows the public that a guarantee is being maintained between the parties for an agreement between the parties. So if I enter into a monetary settlement with you, I can file a UCC to give details of the collateral that will secure that settlement. Of course, when the UCC is filed, it will be public knowledge and any good data collection agency or credit bureau will do it. pick up that. That’s when the “fun” begins.

For now, long story short, UCC is a form of public filing that will help you build both your business and personal credit. As the collateral is released and the UCC eventually ends, your credit will improve. This is true for both personal and business credit. The effect is similar to getting a bank loan and paying it off.

Personally, I think this method will work for another 1-2 years at most. I think this “escape hole” (for lack of a better word) will eventually close. Remember that currently anyone can file a UCC and the requirements are not that difficult to meet. This is very similar to when people can improve their credit by becoming authorized users of someone else’s credit card. Even if they had bad credit, a simple phone call would get them to authorize users. I remember seeing a person build a 5 year credit history by having his friend make him an authorized user on one of his cards. Of course the “trick” became common practice and now that method is almost obsolete. You can still become an authorized user BUT it doesn’t affect your credit like it used to. There is a good chance that UCC filings will follow the same pattern (for credit repair), but for now I think any smart person should make full use of this method. Knowing the law and then using the law is the “way” of the corporation. Both personal and business credit can be improved through UCC filings.

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