When I do seminars or public speaking on starting a business I always ask the audience members to hold up their hand if they know their credit score. More and more people these days are raising their hands. I like that.
Knowing your credit score is very important, especially if you are thinking about going into business. When you start out your personal credit is your business credit, until you can build a business credit history.
Making sure that your credit report is correct is very important. You may have thought you paid off a bill but it may still show up on your report as unpaid. There may be credit cards that you closed but still show up. You may share the same name as someone else and his or her information may appear on your credit report.
Someone that I know had this experience. She knew she had never had credit with the company on the was showing up on her report. Once she investigated she found out that there was someone with her exact name and their credit information was showing up on her credit report and it was not good.
Knowing what lowers your score is important too. Check with the credit-reporting agency to find out what factors can lower your score. If that score is low, you need to begin immediately to build up that score, because if you want to start a business and need even a credit card for your business you may be denied. So do your homework before you get started with your business.
Suzanne Cormier
Executive Director
BizWorks (Small Business Incubator)
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