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How to start a second separate credit file?

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How to start a second credit file? You can legally start a second separate credit file, namely if you are operating a home business. There are some very important steps to follow however.

A second separate credit file would need to be a business credit file. Your own credit file that is the original file is created and identified by your social security number. When you start a business credit file, you use the business name and business assigned identification number.

You will be starting this business credit file as you would your own credit file. The main thing to remember is that you are still responsible for everything in this file.

What you will need to do is create a business name, and register your business. Then you will want to get a business tax ID number. That way you can use this information for bank accounts, credit cards, and other important credit information.

From the first day you begin, there should be good accurate records kept for everything you purchase. Receipts should be labeled and listed in a book keeping software or at least on paper with name of item, date of purchase and price. Your business can be a tax benefit to you and as such you need these records to prepare the report.

There are tax write offs available to a business. Especially in the beginning, the expenses need to be accurate. You will need to keep an accurate record of the money that was spent for these types of expenses

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  • Machinery

  • - Tools

  • - Computers

  • - Desks

  • - Professional services

  • - Utilities

  • - Mileage

  • - Fuel

  • - Vehicles

  • - Office supplies


Any expense that the company has should be documented so that you can use it for a deduction on your taxes.

You can also write of the location of your businesses. If you are working out of your home, you can choose a room and estimate the rent of that room by total housing cost divided by number of rooms, but not bathroom or laundry. You can also include the cost of insurance and other expenses for the property you are working from.

Open a new checking account for your mew business and then apply for a credit card for the new business, not tied to your current credit cards etc.

At tax time, the credit card company can give you a print out you can include with your records.

When you earn money, deposit it in the new checking account and use it to pay for the new credit card bills. When the credit card bill comes in, pay it immediately. Also pay rent and utilities immediately. You can quickly establish a new credit line with this speedy payment history.

Each action you take to build this second separate credit file, you will see that it does not matter what your personal credit file was like. This is a brand new credit score that financers will look at.

As you are building this second separate credit file, you will find that it is necessary to document these actions quickly and accurately. If the documentation of the process and uses are not accurate, you will have problems. It is important to also not mix up the two different credit standings.

These are different steps you will want to take in order to start a second separate credit file. It will be very important to document all of the financial actions taken with this credit file, as you will want to make sure and be ready for tax times and other important financial matters.

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