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Maintaining
strong business and personal credit now is crucial to your future success Business Credit Reports. Larger vendors are more likely to report your payment history to business credit reporting agencies. Payment patterns are indicated on the business reports and are relied on by credit underwriters. Business Checking. Your accounts should maintain a fair level of consistent deposit history that has been handled in a prudent fashion and in proper proportion to the credit amount requested. This information is critical in the "application-only" credit process. Personal Credit. In most closely held companies, anyone with ownership interest may have to have their credit reviewed and/or personally guarantee the company's debt in order for any credit being extended. Several key issues to be aware of on the principal's credit are the amount of revolving (credit card) debt, installment loan history and the number of credit inquiries. Overdrafts. Never allow overdrafts, or NSF's, on your business checking account. They can be the reason for your credit being declined. Work out overdraft or other account protection services with your bank. Current Obligations. Maintain your current business and personal credit obligations. When credit is extended to you and your company, be sure to adhere to all repayment terms. This is critical to maintain future borrowing capabilities.
If
you do have credit issues, there are steps
to take in straightening out your credit history Investigate.
Inaccurate information sometimes is reported to your credit bureaus. Each
credit agency has its process to dispute reported information. Resolve.
The first step to getting your credit in order is to resolve negative
information reported against you. Make sure that all judgments, liens,
collection accounts and charge-off accounts are paid and satisfied by either negotiating
a settlement or by paying them in full. If you have accounts that are
reflecting past due amounts, bring them current immediately. Settle Disputes.
Standing
on your principals may make you feel better, but it won't do
much for your credit. This unresolved accounts can really hamper your
borrowing ability. Student Loans and Child Support. All creditors know that these obligations won't just go away and you should too. These debts take legal precedence over any new debt you acquire. Creditors know this and there can be harsh penalties for not holding your end of these obligations. Timeliness. Make every effort to pay your personal obligations and business trade accounts within terms. Explanations.
Be prepared to explain any glitches, big or small, reported on your credit
reports. Keep copies of any correspondence you have with creditors that
you believe have misreported information. Most credit reporting companies will attach
brief explanations on your behalf
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