The,Importance,Personal,Credit finance, share, loan The Importance of Personal Credit when Getting a Business Cr
If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that
All new business owners must deal with the fact that they havent yet established a corporate credit. Without a business credit, your personal credit history would be a major factor when you apply for a loan or a business credit card. Can you apply for a business credit card without a business credit history? The answer is yes! And this article focuses on how you can be prepared for your business credit card application.Build a Strong Personal CreditAs a new business owner, lenders would use your personal credit history to determine your credit-worthiness and your potential as an entrepreneur. Naturally, an excellent credit history or high credit score would surely win the nod of business credit card companies. On the contrary, a poor credit history or a low credit score would most likely raise doubts and lead to rejection.Therefore, one way to prepare for setting the business is to check your personal credit. Obtain a copy of your report from the three major credit bureaus to see the real status of your credit. Are there any errors or misinformation in your report? If so, you can dispute these errors and request for a correction. Do you suffer from a low credit score? Do you need to improve your credit history? If so, you may need to work on improving your credit for at least six months or more, depending on your rating. Thus, by checking on your credit report, you can take the necessary actions right away before launching your business or before applying for a business credit card.Why a Good Personal Credit Is ImportantWhy is it important to build up your personal credit before applying for a business credit card? If you search the market, youll see that the credit cards with the best deals often require good or excellent credit. The same principle applies to credit cards for small business- the ones with the lowest rates and better terms are only offered for business owners with good credit.What about secured business credit cards? Secured business credit cards grant easy approval. In fact, these cards can be used to improve or rebuild bad credit. Nevertheless, a secured business credit card requires its holder to submit a security deposit to his account. The credit limit is often determined based on the amount of the security deposit. Hence, if you need a higher credit line, youll need to submit a larger deposit as well.Needless to say, business credit cards that require excellent credit usually have lower interest rates, less fees and higher credit limit. Business credit cards with reward programs and special privileges are often offered exclusively for entrepreneurs with good credit.Clearly, having an excellent personal credit would work to your advantage when you apply for a business credit card. Of course, before signing up or submitting your business credit card application, dont forget to read and understand the complete Terms and Conditions. Finally, once approved, register your company with Dun & Bradstreet and start building your business credit right away.
The,Importance,Personal,Credit