New business owners very often rely on their personal credit to get access to the necessary financing for their business. Are you a merchant interested in how you can rebuild your personal credit? Maybe you just need to take action to improve your credit after having taken some wrong steps, don’t you? What about a business cash advance bad credit? No worries. Just read the article below to know.
Personal Credit & Business Cash Advance Bad Credit
According to a survey by a company offering credit improvement services, about 40% of its small business customers were “credit ghosts.” These consumers lack enough credit history, thus becoming less eligible for business funding.
The good news is that there’re companies offering business owners their helping hand in managing business credit. With this type of company, you can open a self-builder account to build a business credit history.
These companies offer no credit check, so you can avoid headaches with your poor credit. Besides, they don’t require you to put down a security deposit. Also, you’ll be offered more affordable interest rates, no matter you’re a starter or a merchant with bad credit.
In fact, bad credit doesn’t mean you can never get access to business funding or open a merchant account for your online transactions. With reputable alternative online lenders that offer high risk business funding, you can enjoy not only easy access to working capital such as business cash advance bad credit but also cheap rates.
How to Improve Your Personal Credit
Did you know that the effectiveness of a credit-builder account depends on more than one factor? Here they’re:
- How active you’ve been with your payments
- The time spent on establishing credit
- The number of tradelines your credit file contains
- Your credit card usage
- Are you late on your payments or not?
Now, let’s see what steps you can take to have a better personal credit score:
- Be wise about your spending
- Consider a credit builder loan
- Use a retail store card
- See whether your credit report has errors or not
- Stop borrowing or charging
- Use credit for affordable expenses
- Don’t let your balance or credit limit go higher
- Consider revolving debt
- Your balances must make up less than 30% of your high credit
- Balances below 50% (better 30%) must be paid down
- Never be late on your payments
- Apply for a credit limit increase
- Have a comprehensive plan for finance tracking
- Share credit with family and friends wisely
- Go through your credit reports regularly
- Keep your past due accounts cleaned up
- Fully pay your credit card balance
- Consider a secured loan
- Don’t forget about hard and soft credit checks
- Avoid canceling your credit card even if you aren’t using it
- Keep an emergency fund
- Get credit for the rent you pay
- Don’t go to collections for medical bills
- Choose lenders that report to credit bureaus
To sum up, positive credit history plays an important role in getting access to working capital, opening a merchant account, etc. Thankfully, you can take action to improve bad personal credit.
Author Bio: As the FAM account executive, Michael Hollis has funded millions by using business cash advance bad credit solutions. His experience and extensive knowledge of the industry has made him finance expert at First American Merchant.…