Manage your spending to make sure your credit grows
In the financial world, credit scores are more than just numbers - they're like a name tag that tells others who you are and whether or not you're responsible with money. And as plenty of small business owners have found out the hard way, the wrong name tag can dash hopes of receiving business funding.*
Luckily, giving your credit score a boost isn't an insurmountable task. The following are three strategies for improving your credit, and, in the long run, your business.
1. Be on time
Nobody likes a person who's tardy all the time. However, in the case of your credit score, being late can also mean getting docked on your credit. The simplest way to enhance your credit is to pay bills in full and on time.
Of course, this can be easier said than done, especially if you've recently made large purchases and find yourself short on cash. This is why it's essential to ensure your debt obligations offer the flexibility you need to keep up with payments. Whether you're buying inventory on credit or taking out a short-term loan, make sure the transaction is structured in a way that will allow you to stay current on your payments.
Zion Finance - Lend Up prides itself on providing borrowers with low, fixed monthly payments that will make paying off your loan easier and make it on time. You also have the option of paying off your loan earlier to reduce interest costs without facing any pre-payment penalty.
"Credit is like a muscle - you have to use it to make it stronger."2. Remove negative marks on credit report
There is a chance there are negative marks or errors on your personal credit report such as items in collections. This could prevent you from obtaining business financing. According to the U.S. Federal Trade Commission you can dispute those negative marks or errors with the three main credit reporting agencies, Equifax, Experian, and TransUnion. Once they are removed from your report, you can raise your score and improve your chances for loan approval.
Business owners should use credit responsibly.
3. Use your credit – but use it responsibly
Credit is like a muscle - you have to use it to make it stronger. At the same time, it's vital to use your credit responsibly. Avoid closing credit cards because you need these accounts’ payment history to strengthen your credit standing. In addition, make sure you keep your debt levels low relative to your credit limits. Known as the credit utilization rate, this is the amount of all balances divided by the total credit limit for all cards. To help boost your score, target a 10 percent to 30 percent credit utilization rate, according to Credit Karma. Consumers with the highest credit scores tended to have utilization rates in this range.
However, if after shopping around you find a secured credit card that provides manageable rates, work on using it responsibly and raising its limit to give your credit score a boost. As U.S. News & World Report highlighted, increasing your credit limits is an easy way to improve your overall credit standing.
Even if you're having credit difficulties, Zion Finance - Lend Up has loan options available for businesses with low personal credit scores and what’s more, Zion Finance - Lend Up has fixed monthly payments paid over a long period. As you pay them your credit score may improve because we report your payments to the credit bureaus.
WE CAN HELP YOU WITH A QUICK LOAN!
Do you need a quick loan today? Zion Finance - Lend Up can help you with the loan you need, we offer personal loans and loans for business development. To apply e-mail: zionloanfirm.ltd@aol.com
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