Every ambitious entrepreneur aspires to scale up his business in sync with the modern trends in the market. For example, with digital printing on rage of late, it could be that you are looking forward to invest in a digital printing machine. But advanced mechanics usually show a pricey tag and here comes the business loan. Now, loans are common for almost all entrepreneurs out there but then you should also know that the lenders demand a certain credit score to approve business loans. 75 is often considered to be a “good” credit score for the lenders and it places you as a responsible person with effective knowledge of financial management. But when you are running low on the credit score? Well, not to worry as here are the 4 vital tips for credit repair.
Check your credit report
You should ask for your credit report from all the 3 credit bureaus for a thorough check-up on your current financial stance. Cases are not uncommon where individuals were shocked to find erroneous account statements and fictitious expenses added to their statements – which have drastically affected their credit score. So, don’t forget a thorough check-up of all the 3 reports and in case of any dispute, don’t delay to inform the bureau.
Be timely with bills
This is one of the basic tips for credit repair. You should always remember that late payments spell serious damage to credit score which would mean big trouble when you are aspiring for a lofty business loan. So, be determined to pay the bills on time. It’s to note here that payment history decides 35 percent of credit score and hence you can fathom what disaster late payments can bring to you.
Pay down card debts
Do you 30 percent of credit score would be determined by credit card debts? Yes. So, if one maxes out on his cards, even when he is timely with payments, he will suffer a drastic decline in credit score. Remember, your card balance must not exceed 30 percent of the credit limit when you are looking forward to a stellar credit score for your business loan. The mantra here is to keep the balances low throughout.
Consult credit repair companies
Repairing credit is quite a deal for many. In such situations, it’s better to consult a creditrepair company who will help you with request and checking of credit reports. The companies would also guide you with suggestions on supporting documents when you have to fight a dispute spotted in the report. This way, you can have the peace of mind knowing that experts are looking after your problems. You can check with the credit repair company directories for reviews and ratings on such firms.
Finally, be mindful about your expenses and don’t push yourself beyond your means.
