Why Should You Be Concerned About Your Personal Credit Score
If you are still in the planning of stage of your business, then its not to late to look at your personal credit and start making sure its in the best shape possible. Even though you are starting a business, initially the banks and finance companies will be looking at your personal credit to see how credit worthy you are.
Why Is Your Credit Score Such A Big Deal
Having good credit is more important than ever. If CASH is KING then CREDIT is QUEEN! Two business people could walk into the bank on the same day, in the same industry, asking for the same amount, and one could end up paying $100s of dollars more per month due to having a poor credit score. Ordering a copy of your credit report is just the first step in protecting your credit. Analyzing the information contained in your credit card report and taking action are the most important initial steps you need to take.
Start Forming Good Credit Habits
Be a responsible payer. Obviously, the best way to boost your credit is to be a responsible borrower. This means, you should not only strive to pay your debts but to always submit your payments on time. This may seem like a really easy step but putting it into practice can prove to be harder than you think. If you’re really serious about improving your credit score, paying your debts on time should always be your priority.
Don’t get too many credit cards. Owning several credit cards will not do much in improving your credit score. In fact, too many credit cards can even cost your credit score to drop if you keep incurring unpaid balances on these cards. Having just one or two credit cards should be enough to help you build credit. It will also help you put your credit card usage under control.
Pay off your credit card balance in full. If you are in the habit of paying only the minimum due, you’re putting yourself at risk of mounting debts and lowering your credit score at the same time. Carrying over your balances from month to month costs you additional interest payments which you can altogether avoid if you completely pay off your balance by the end of the month. Think about how much you can save and what a big improvement it can make on your credit score.
Choose creditors wisely. Whenever you’re applying for a credit card or a loan, take the time in researching and comparing different lenders. It is so easy to believe what the ads say. All lenders promise to give you the best deals but only few can live up to their promises and it is up to you to find them.
Control your spending. When it comes to avoiding debt problems, everything all comes down your spending habits. How well you manage your earnings and how you control your expenses makes a big difference in building your credit. The key is to use only your credit cards on important expenses and to know your priorities. If you’re not going to borrow more than what you can afford to pay back, you should have no worries about not being able to pay your debts at all.
Be aware of what your credit report says about you. Check your credit report at least once every six months to ensure that there are no false charges or inaccuracies. This will help you maintain your good credit standing. In case there are errors to be corrected, checking your report will enable you to make a dispute right away and have this potentially damaging information removed from your credit report.
The business loan expert, Irish Taylor, has been with Startup Business Loans since 1992. She has been inspiring entrepreneurs and small business owners with start up business financing ideas and techniques. Through the years, she has helped provide clients and people with solutions to loan and credit issues related to new business financing, SBA loans request and new business loans.