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| Good Personal Credit Now Means a Profitable Business Future |
By:
Patrick Gage |
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While many people don’t correlate personal and business credit in the grand scheme of things, most businesses start in one of two ways – either the person running the business begins it by using their personal credit record to base their business off of or they instead will have their personal credit looked at as the bank opens a business account for the company they own. Either way, dings on your credit can be a problem.
You may think it's no big deal, but you would be wrong. While you may be able to start your business with the money you have saved up or with your own know-how, there are always times in a business when you will need credit to grow or just to keep things going during down economic times. Without a good business line of credit you could find yourself in trouble.
Additionally, once you are running a company, you are going to want to get the best financing rates possible when you do get a line of credit. The better your credit rating, the more favorable rates you can get from financial institutions.
So, if your credit is less than perfect, how do you fix it?
Start by finding out where the problems are. Late payments or missed payments are one of the major dings on credit history. If you have missed payments in the past, it's going to take about 2 years for those dings to go away. That means from this point on you need to make sure to never miss a payment or be late. If there are unforeseen circumstances that cause a one-time problem, don’t just let it go. Call the credit card company and let them know you are having a problem. By calling and showing you are trying to be responsible, they may be a little more lenient and not report the ding
How many accounts do you have open? If you have a lot of open lines of credit (even if you aren't using them) these all count against your available credit. Too many open lines of credit can make financial institutions uncomfortable, thinking you are a risky proposition.
Once your credit is back on the right path and you are ready to get operational with your business, establish your business credit. You should always have separate credit records for your personal and business expenses.
Pat Gage, The Opportunity Creator, has over 18 years experience in money and finance, business building, real estate investing and marketing. The Opportunity Creator is not only a sought-after business coach but he also is a national speaker, trainer, and life-long entrepreneur who himself has started several companies.
For more information, visit Gage’s site at http://www.10steps2moneysystem.com |
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