When you’re thinking of starting a small business, it entails much planning: from what kind of business you want to put up to how you want to deliver the products and services. Aside from the time you’d have to dedicate just to form every single detail, one other essential factor that could eventually make your business dreams come true is securing enough money.
Before you can start gaining profit, you would have to spend quite a big amount while your business is still at its beginning phase. Believe it or not, but most business owners during this time would opt to apply for a loan to help them manage their financial expenses. So, you decided to apply for one, too. But what if you found out that you have a bad credit score?
Your credit score is an important element that increases your chances of securing a business loan. Of course, having a bad score is not a good sign, but you don’t have to worry altogether because there are ways you can do to improve it. Read on to learn how!But first, what is a credit score?
Knowing the basic elements involved could help you gain an understanding of how things really work. So, what is a credit score exactly, and why is it important? Basically, lenders use this financial tool to measure your ‘creditworthiness‘ based on your previous credit transactions.
The higher the score, the higher chances you’ll get to be approved for the loan. In addition to loaning, your credit score can also determine how much interest rates you will pay.How to fix your credit score
If you’re aiming to apply for a business loan, maintaining a good credit score of around 600 and higher could grant you more favorable terms. But what if your score falls below the minimum range? What can you do now? Below is a list of things you might want to consider to help you repair your credit score.Secure your credit report
First, you have to get your credit report to know how bad your credit score is and how many points you’ll need to reach the loaning qualifications. You can also check if there’s an error by viewing your credit report. Usually, requesting one might entail a fee, but you can request one of the three major credit bureaus for a free credit report.Check for errors
Most of the time, a bad credit score may have resulted from a false and incorrect input in your credit report. In worst-case scenarios, other people’s debt information could end up in your file, or the debt you’ve already paid may not have been cleared yet. That is why you should get your credit report and check for these and other errors.Dispute the issues
Once you’ve identified an error, settle it immediately. Credit bureaus are legally obligated to help you fix and resolve these mistakes. You can directly report the errors to the credit bureau where you filed and received the report. You simply have to fill out the form they’re going to provide online through their website.Pay for overdue fees.
Aside from the errors, you must also pay attention to your overdue balances. You can never go out of that unfavorable financial situation if you have unpaid fees. Remember, the longer you delay payment, the worse it gets for your credit score. If you want to repair your score, pay your previous debt first as much as possible.Look for credit repair services.
In all honesty, fixing a credit score yourself is time-consuming, and it gets more complicated and difficult as the process advances. If you work with repair companies, you don’t have to go through the above-mentioned processes alone. Therefore, looking for a reputable and legitimate credit repair company should also be one of your utmost priorities.
With lots of possibilities on the internet, though, looking for one might be confusing. Legit companies usually provide stellar customer services, reasonable policies, and continuous communication.
Lexington Law offers these benefits. You can read their credentials, policies, and contact information available on their website, or you can check out Crediful’s review of Lexington Law if you’re not entirely convinced.Why Should I Hire for Credit Repair Services?
Sure, you can make meaningful changes in your credit report on your own, but the benefits you can get when you hire for credit repair services can also not be denied. They would guide you through the process and assure you to improve your credit score as best as they can at once. Specifically, they will help you:
- Access your credit reports – they would check for erroneous information included in your credit report and explain them to you.
- Dispute on your behalf – you don’t have to go through the hassle of filling out forms (which could confuse you sometimes) because they will settle this on your behalf.
- Get legal advice – one good thing about hiring is that you can fully understand your situation on the legal side. They will help you strategize how to manage your account, what course of action to take, and continually track your progress.
- Improve your credit score – while results will vary from client to client, you can still be guaranteed an overall improvement in your credit score when you work with credit repair companies.
Fixing your credit score is crucial, especially if you want to apply for business loans later on. While you can fix them yourself, you can also choose to hire for repair services instead, because aside from you can save time and effort, you can also be sure that your credit will have an error-free report. Sure, you’d pay them for service fees, but it’s definitely worth your dollar.