“Credit is a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date, thereby generating a debt.” (Source: InvestorWords.com & Wikipedia.org)
Consumer Credit is Personal Credit
Personal Credit includes: credit cards, installment loans, home equity loans, mortgages and auto loans. Your credit history is your ability of re-paying your past and current debt which determines your credit risk when applying for a loan.
It’s very important for business owners to maintain good credit and good credit scores, since the application of a business loan begins with your personal credit, which determines your default risk. The common red flags that lenders look for are judgments, tax liens, prior bankruptcies and recent late payment history. Lenders rate your personal credit as equivalence to the ability of paying your business loan.
Keeping Your Credit in Check
If you are considering a conforming business loan , it is important to:
- Pay your bills on time, stay current with your bills or get current
- Pay off your debt than shuffling it around with new debt
- Don’t apply for too much credit which you can’t afford or maintain
- Only utilize up to 30 or 50% maximum worst case of your available line of credit
- Do not over accumulate credit inquiries on your credit report
- Only apply for credit that you need to have than the want to have credit
Maintaining good personal credit is the key to your financial success and business!
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For more information on how I can best serve your Jupiter, FL and Palm Beach, FL credit repair needs, please fill out the online contact form about your concerns or give us a call at 855.477-9007 . Read what people have to say about First Pro Capital on our Testimonials page.
Allow our team of professions to assist you!!