Credit and business go hand and hand. One can’t work without the other. As a business owner or a potential one, it behooves you to make it a responsibility to put your money where your mouth is and get your financial life in order. If your credit is subpar, it doesn’t mean that it is the end. There are many alternatives available to assist one in obtaining and raising their credit scores to achieve their financial and business goals.
- Secure a stable form of income- Whether it’s full-time or part-time, income is the surefire resource to enable you to reach your destination quicker. While you are working, incorporate your passion into the mix. The extra income can enable you to reach your goal faster.
- Set a budget in accordance to your debt and income – Write down what you owe and what you make. Set timelines as to when you want to pay each debt off. It has always been a rule of thumb to first pay off the debt with the highest interest and then the lowest balance.
- Obtain a secured credit card. This is one of the best tools to restore credit and regain financial security. By investing in yourself first, creditors look at this as a means of if you can pay yourself back, the chances of you paying them back may be great. This technique has been known to raise credit scores as much as 50 to 100 points.
- Set up a separate account for bills, pleasure and food. Multiple accounts enable one to separate the needs from the wants. It gives the account holder the responsibility to stop when they have exceeded or met the threshold of the budget. When you see and know where your money is going, it keeps one in a mindful perspective.
- Use cash whenever possible. Cash is still the ruler of all forms of payment. It offers the highest return. It’s liquid and highly influenced. You can never go wrong with using it as your means of acquiring. Most businesses often cut a deal if it is used to purchase goods. Money never is returned unlike other forms of payment. It builds credibility and offers security.
- Check your credit scores every six months- In the midst of rebuilding your credit, making certain that your creditors are keeping score like you; check your credit report on a regular basis. The top three bureaus of reporting are Equifax, Transunion and Experian. These agencies will allow you to dispute erroneous and keep track on what is being reported.