If you are starting your own health and fitness business and have reach roadblocks because of your low credit score, then there is no better time than now to get to improving it. While it may seem like a challenge to raise it to lender standards, that simply is not the case.
Read on to learn about the seven different ways you can raise your credit score if you’re opening your own health and fitness business.
It’s Time to Face the Cards.
Schedule a time on the weekend or a quiet time in the evening to list a compilation of all the active credit cards you have. Make a separate list of any closed cards that have an outstanding balance. Write down all of the owed balances on both lists. You will need this information for a variety of reasons, including spotting high interest credit cards and those with small balances.
Resolve the Credit Card Balances.
After making your list, you may realize you have multiple credit card balances of small amounts owed to you. This is typically acquired throughout the years of managing credit cards. Take these dollars and pay them towards the small balances you owe. Make a plan to earn extra money. Use this money to pay off all small balances one credit card account at a time, thus raising your credit score with every payment you make.
Leave Well Enough Alone.
Do not ever make the financial error of having an old debt or a closed account with good payment history removed from your credit report just because the account is dead. These are the points that makes you look good to lenders. If you are starting your own business, you need the history of good payments to shine through to creditors and lenders. Ideally, you want old debt and good closed accounts to stay on your credit report for as long as they can.
Do Your Applications Within a Short Time Frame.
If you are going to be shopping for business loan in the near future then be prepared to do all of your applications within a short period of time. It used to be every time somebody applied for a line of credit, their credit score would dip down. And for as long as a year! However, now the numerous applications made for loans will be ignored if they are made within 15 to 45 days, depending on the lenders type of credit score used.
Stop Missing Payments and Paying Late.
It goes without saying that the credit score improvement basics include making sure to pay your bills and on time. The consistent, regular routine of paying your bills by the date they are due will speak volumes on your credit score. The benefits are reaped automatically with each payment, and helps to make you a smart spender for the long-term.
Don’t Set Off Red Credit Flags.
Don’t go waving around red flags to lenders and creditors that you need cash. Although securing a temporary loan or cash advance, the act of conducting these type of transactions is just advertising to creditors that you’re a risk.
Do your own credit score report management.
Manage your own credit score for free. You can use a site such as CreditKarma to keep up with your credit score and even improve it. They offer all types of customized suggestions and solutions. You can improve your score on your own including being able to dispute credit report items through them.
By practicing the seven ways listed above and managing your own credit score, you will see an improvement. Before you know it, you will be able to finally be able to qualify for a business loan to open your own health and fitness business.
If you are reaching roadblocks and would like financial solutions from GCA, please do not hesitate to give us a call at 323-364-7659 or click below to get the conversation started.