If You’re Not a 720 There’s Work to Do.
Amazingly enough, someone’s life can be drastically affected by three numbers. Here’s a look at the consequences they can bring. You should review your personal credit reports at least once per year. If all 3 scores form all 3 credit bureaus (equifax, transunion, experian) are above 720, congratulations! You have excellent credit; stop worrying.
If you’re scores are not above 700, no problem—let’s get to work. Take solace in the fact that the national average score is around 676 according to the Gallup Organization. If you’re scores are below 400, 500, or 600, there’s definitely room for improvement and only one way to go—up!
This Book Credit Restoration for Entrepreneurs will help you get started.
A Crash Course In Credit Scores
If you had no idea that there is a totally different credit scoring system for businesses than there is for people, don’t fret—I’ll explain.
Personal credit scores range from 350 to 850. All three of the credit bureaus—Equifax, Experian, and Transunion—offer FICO credit scores using a complex mathematical formula developed by Fair, Isaac and Company, but they each give the scores a different name: At Equifax, the FICO is known as the Beacon credit score; at TransUnion, it’s called Empirica; and at Experian, it’s called the Experian/Fair, Isaac Risk Model.
Business credit scores range for 0 to 100. The major business credit bureaus are Dun and Bradstreet and Experian Insights. Unlike their counterparts the business scoring system is not complexed. It is quite simply based on payment history. Each credit bureau does however, give the scores a different name. At Dun and Bradstreet the score is called a PayDex and at Experian it is called an Intelliscore. Here is the bottom line in this crash course: Good business credit scores PLUS good business credit scores gets you access to lots of business funding!
Is Your Personal Credit Affecting Your Business
Want to know how your personal credit will affect your business? Don’t miss the Do It Yourself Credit Repair Workshop!
Obviously, if you currently have poor or bad credit history, it’s best to work on improving the status of your credit first before submitting your business loan application. Otherwise, you may just get declined by your lender. Banks and lending companies seek out applicants with good or excellent personal credit history.
You see the advertisements in newspapers, on TV, and on the Internet. They all make the same claims: “Credit problems? No problem!” “We can erase your bad credit – 100% guaranteed.” Do yourself a favor and save some money, too. Don’t believe these statements. Only time, a conscious effort, and a personal debt repayment plan will improve your credit report.
This workshop will include:
• How you can improve your credit worthiness and legally dispute negative information on your report.
• How to obtain a free credit report and understand your credit rating.
• Understanding the credit scoring system.
• Secrets to getting business capital with less than perfect personal credit.
Bring a recent copy of your credit report and get it reviewed by an expert!
Inland Empire Women’s Business Center
SPACE IS LIMITED!
Register online at www.iewbc.org Tuesday November 2, 2010 Time: 6pm -8pm
Cost: $10.00 Online or $15.00 at the door
Author of Credit Repair For Entreprenuers, Speaker, and Business Finance & Credit Advisor