Raise low credit score ?
i have a small business whith no credit line sometimes i have as much as 50k in ac so i use my credit cards for cash flow but they get maxed out and the when we get paid from a big job we pay them off but they get maxed out all over again.so my credit score is low and no bank will give me the time of day we've been in business for 3 years. the business looks very good on paper but my personal credit score is low. HELP!
Public Comments
- Steve, First things first. Do you know what your credit history looks like to begin with? By law you are entitled to receive one free credit file disclosure every 12 months from each of the nationwide consumer credit reporting companies – Equifax, Experian and TransUnion. Go to www.annualcreditreport.com and select your state. One of the reasons your credit score is low is because you keep maxing out on your credit card. Everytime you max out all your credit cards and line of credit. That information will be reported to the credit bureau's, and it will lower your score a few points in some instances. So get a handle on your credit history and dispute with the credit bureau if you see anything that doesn't belong there. You may also consider not using your credit cards at all or atleast not using anymore than about 30% of available credit at any available time. Also I recommend you reading a book called "The Attorney's Guide to Credit Repair" by Dave Shapiro. This guy really knows his stuff and has been in the credit repair industry for 27 years.. This book goes more into detail and has some effective strategies in place that can help you raise your score quickly. You can get that book at: http://www.youronlineloanguide.com/ref/credit.html . I hope you find your way.
- You must keep balnces low. What you can do is find out what day of the month the crditor reports to the bureau and still continue to use your cards after the creditors has reported your low balance. Normally they report the week before you bill is due. Good luck
- Darnell is confusing a credit report with a credit score. The reason your score is low is because you max the cards repeatedly. As long as that continues they will remain low. What this says to a creditor is that you rely on high limits to get you through the day and there is a risk that one day they will be maxed and never paid. You should not be using your personal credit for your business. That brings on more liability than just a bad credit score. You should consult a CPA about separating you from your business and setting up a proper credit line.
- Before approving your loan, your lender contacts the credit bureaus to get your credit report. Bad credit report will severely restrict your credit. In some cases, you may not even get the credit. So it is vital to get your credit report cleaned. To enable you to achieve that you have to alter your financial habits. Usually, companies who give credit to people with poor credit history have to provide monthly reports to the major credit bureaus. Credit card companies are well tied with these bureaus via a system that allows them to check out the credit status of the people opting for bad credit cards......
- Congratulations on building a successful business! Many business don't make it past the 2nd year. I agree with MissLabled. 1.You need to start by separating your business credit and personal credit. Your business has been running for 3 years now. If you have been making a profit you should be able to qualify for a Small Business Administration (SBA) Loan. There are two possible options here. A loan for a fixed amount or a credit line. Check with your bank, but talk to someone who handles Small Business loans. 2. The repeated maxing out of credit cards is a very common thing for Small Business Owners to do while they are getting their business off the ground. This is the thing that is hurting your personal score the most. If you own a home - It would be better to borrower against an equity line than borrowing against the credit cards. 3. Here are some tips to help you improve your personal score. - Pay your bills on time - Get credit balances below 75%, 50%, 35% of available credit - Do not open any new accounts or apply for additional credit - Do not close any accounts - Dispute errors on your report For more information on credit go to Fair Isaac's site (they created the credit score) www.myFICO.com There are companies that can assist you in improving your score. Please note everything they do, you can do for free on your own. ~Danke Schoen Feel free to contact me with any other questions. MrDankeSchoen@yahoo.com 925-250-6067
