Your credit score is a vital part of your financial success. My journey was like a rollercoaster, up and down. One day I figured out the formula for restoring and rebuilding my credit. I realized my credit impacted my business credit. It was so obvious, but that is not something they teach you in business school. Credit can be a mystery for many people until they start trying to buy things that require them to know their credit and credit history. Fortunately, I improved my score by 150 points through five key areas, which is when my business started to flourish because I had access and leverage. Here are some statistics you should know:
Statistics show that 29 percent of new businesses reportedly failed because of a lack of finance.
While Experian estimates 30% of Americans have poor or bad credit, plenty of people have no credit at all.
Nearly a third of Americans have a credit score lower than 601.
Your personal credit affects your business credit. Restoring your credit is vital to your financial success.
5 Ways to Help Improve Your Credit
1. Pay your bills on time. It’s simple. When you pay your bills on time, it shows you are responsible.
2. Understand how your credit score is determined and make sure you are checking your report. Three bureaus that are useful when trying to understand your credit: Experian, Transunion, and Equifax.
3. Call your credit card issuer and ask when your balance gets reported to the credit bureaus. Pay your bill just before the closing date. Again, this shows responsibility and builds trust with your credit card issuer.
4. Get credit for making utility, rent, and cell phone payments on time. You want to have every single bill possible that you pay every month as a credit. This is a helpful way to continue to boost your credit score.
5. Ask for help from a professional. Many credit reporting bureaus offer support from professionals, along with the ones I listed above.
Many entrepreneurs do not have good credit. But that shouldn’t stop you from improving your credit. Your credit score is a responsibility and trustworthiness score. Your credit score will determine so many of the opportunities you try to get ahold of for you and your business. So, protect it, restore it, and build it. There are many other ways to improve your score. To learn more, go to http://www.experian.com or visit http://www.drsyleecia.com to get professional help.