Any business owner or entrepreneur will tell you that one of the most challenging tasks faced when building an organization is raising funds. The great news is that a good credit score can make funding less of a daunting task and mitigate many challenging aspects.
Seasoned financial professional Scott Crockett, Everest Business Funding’s Founder and CEO, has gained many skills during his entrepreneurial career. His knowledge in finance and business has helped him identify some crucial aspects, such as good credit, that can make his life easier as a business developer and operator. Below, Crockett goes into further details surrounding five things anyone can do to manage their score and keep it healthy in the name of their business.
Check your credit report for errors
The Consumer Financial Protection Bureau released their findings stating that one in five consumers have credit reports with an error. Four out of five people who dispute them see an effect of a change to their credit report. Disputing a credit-report error is one of the less time-consuming and simplest avenues to take to boost your credit score.
Pay off a credit card in full
“A healthy financial habit to start practicing is paying off your credit card the same day that you use it. That way, you’ll never be late for a payment and never spend more than you have,” Scott Crockett, Everest CEO and Founder. Debt can quickly be accumulated with a credit card if you bite off more than you can chew financially and only use it when you are ready to buy. Your credit will be negatively affected if you miss a payment.
Limit how often you apply for credit
When you apply for credit cards too often or apply for multiple cards at once, the result can lead to a decrease in your credit score. Every time you apply for a credit card, the financial world sees you as having fewer funds for the added loan or credit card you accept under your name. It does not put you in a good light in the eyes of a lender. And applying for multiple cards at once will make a lender think you are desperate to borrow money.
Limit the amount of credit you use
Maintain a good credit score by utilizing below thirty percent of your maximum credit amount on every individual card. To have the best credit score through this strategy, shoot to no more than ten percent of your total credit value.
Keep unused accounts open
You want to develop a long credit history to add quality to your credit score. Excellent credit scores reflect a high amount of available credit along with an extended credit history. Due to the goal of building credit history, you should not close old or unused accounts, even if you plan never to use them again. Closing a credit account reflects a lack of experience with credit.
About Scott Crockett
Scott Crockett is the founder and CEO of Everest Business Funding. He is a world traveler and serial entrepreneur with an impressive track record in the finance sector. Scott has raised over $250 million in capital and helped create thousands of jobs during his 20+ year-long career in consumer and commercial finance.