Your credit score can have a major impact on your personal life and your business. Good credit affords you many wonderful opportunities, whereas a life without credit can involve some major struggles.
Everyone makes mistakes, including financial mistakes, which can have a negative impact on your credit score. But there are a number of ways that you can improve your credit score over time.
• Pay your bills on time. Yes, it sounds like a no brainer, but it’s extremely important to pay on time as late payments have a negative impact on your credit score, plus the late fees are simply a waste — money that could have been put toward paying off your balance.
• Aim to keep balances low. High credit card balances reflect poorly on your credit score, so make a concerted effort to pay down those balances, one by one. Ideally, you should have a balance that’s no more than 20% of your total credit card limit.
• Get rid of any unnecessary credit cards or accounts, as these have the potential to “weigh down” your credit.
• Minimize interest. You can achieve this by performing a balance transfer to a credit line with a lower interest rate. You might also consider obtaining a low-interest consolidation loan, which enables you to pay off all of your debts, which are consolidated into one single loan payment. This is not only easier from a logistical perspective, but you’ll also save significantly on interest if you can secure the consolidation loan at the right rate.
• Pay off collections. If you make a mistake financially and end up in collections, take action and pay up. Dodging the bill collector isn’t just a hassle, but it also reflects poorly on you if you fail to resolve the debt. Remember that if you do go into collections, you can often negotiate to pay a lower sum.
If you have a strong credit score of 720 or greater, you could be eligible for a line of credit from Teele Enterprises. Click here to learn more about this opportunity for your small business or other venture.