Are you preparing to apply for funding for your small business? If so, you may be a bit nervous about your credit score and how it could affect your eligibility. You’re not alone if you’re looking for tips to help you repair your credit.
In this economy, credit history issues are pretty average. Fortunately, there are some great, quick, and easy tips that you can follow to repair your credit. If you commit to it, you could easily improve your credit history within this next year. Just imagine, this time next year, you could be confidently applying for funding!
9 of the Best Tips to Help You Repair Your Credit Quickly
- Check your credit reports- This is where all of the information you need is located
- Consolidate your existing debt- It’s easier to make a single payment than 3-5 different payments.
- Learn about factors that affect your reports- ie. Payment history, accounts owed, length of credit history, types of credit, new credit, etc.
- Use secured credit cards- These are a great alternative to regular credit cards because you can’t exceed your limit
- Pay current account debts first- Closed accounts can wait until you pay current ones.
- Review and revise your budget- and stick to it!
- Set up auto-payments or payment reminders- This will help you avoid late fees and dings on your report
- Be leery of credit offers that begin to appear as your credit improves- Remember how much work went into repairing your credit. Don’t throw it away for an exciting credit card offer that you can’t realistically afford.
- Commit to making necessary changes- Commitment is key when making major financial habit changes. This will be the most difficult part- sticking to it. It will be worth it when you confidently turn in your application, however; along with your business plan and other documents.
Get Started Right Now!
There’s nothing holding you back from fixing your credit right now! Or at least getting started. With the use of these 9 tips we’ve listed, your credit will improve dramatically.
Lenders and grantors like to see that you’ve taken the initiative to establish an effective, long-term plan to take control of your finances. Even if your credit wasn’t ideal last year, these tips could really make the difference between whether or not you find funding this year.