Your credit score is the deciding factor for so many aspects of life. If you’re suffering from a bad credit score, you probably already know this to be true. But have you considered how cleaning your credit can create opportunities? Would you believe “credit” and “opportunity” can be used in the same sentence? If your skeptical, consider the following tips on how you can get your life and business back on track.
The Truth about Credit Reports
As stated above, bad credit affects your ability to get a loan (business or personal), job promotions, rates insurance companies charge for auto coverage and how much borrowers charge you for credit. While the effects of your score on your personal life can be devastating enough, it can also negatively affect your business plans.
FICO scores range from 300 to 850. Your creditworthiness is reflected by this score, which is determined by the five following factors: payment history, current level of indebtedness, types of credit used, length of credit history and new credit accounts. The three major credit bureaus are Transunion, Equifax and Experian.
You might be surprised to hear that bad credit is not always the result of poor debt management. It’s important to note that bad credit can also be caused by errors on a credit report or by identity theft. If this occurs, a consumer can bring in credit repair professionals to help you fix errors and resolve issues.
In fact, incorrect information on credit reports ranked as the No. 1 issue in 42 states. New-York based personal finance technology company, SmartAsset, recently studied the 2016 data from the federal Consumer Financial Protection Bureau. According to their findings, incorrect credit report issues were the biggest financial issues complained about in each state.
Building a Better Future with Bad Credit
Did you know you can secure merchants loans with bad credit? In addition to repairing your credit score with professional help, you can also take steps to building a better future. One of the biggest problems for new business owners is their credit. Bad credit or insufficient credit history often prevents them from securing the business funding they need to start their business venture.
A bad credit merchant loan, however, is offered by an alternative lender like First American Merchant. As a high-risk provider, FAM specializes in providing solutions that are tailored to meet the needs of each business type and industry it works with. The process is known for being simple, fast and hassle-free – merchants can receive funds in as little as 24 hours. Even better, their flexible business funding programs can actually help you rebuild your credit score. Who knew that cleaning up your credit could equal business opportunity.