How Your Credit Score Can Make or Break Your New Business

Hey credit heroes. Growing a business is hard and your credit score shouldn't make it harder. If your credit score is bad, then it's definitely not helping. That's why today I'm going to share exactly what credit score you need to start a business. So you better stick around.

So the big question is, how can we take our passion for helping people with their credit and turn it into a successful business without taking loans? Without spending a fortune by bootstrapping it from none, nothing so we can help the most people and still become highly profitable? That is the question and this podcast will give you the answer. My name is Daniel Rosen and welcome to Credit Repair Business Secrets.

If this is your first time listening to my podcast, every week I give credit repair tips and advice on bootstrapping your business from nothing. So be sure to click subscribe now and get ready to start changing lives. Okay, let's get into this. In the 20 years since releasing my first credit repair software, I've helped thousands of businesses scale from the ground up. I've seen a lot of people repair their own credit and then go on to build a really successful business. And I've been seeing a lot of questions recently from people who want to build their own business, and the question is, what credit score do they need to get started? Although it's a very simple question, the answer is not so simple. Here's how this relates to us. The the fact is, as unfair as it sounds, your personal credit score could play a big role in your ability to secure funding, partnerships and contracts. When starting to run your own business, lenders and investors often look at your personal credit score to gauge the risk of lending you money, even if it's for your business. So if you have a low credit score, you might not be able to get a loan or a line of credit. This may hurt your business's growth and hinder your ability to take advantage of opportunities as they arise. Even certain vendors and suppliers who you may be considering to partner with, they may require a particular credit score. And some potential clients may ask to see your credit before deciding to work with you in your new business. Here's the thing to remember a low credit score could raise red flags and could hurt your chances of landing that partnership. While a great credit score can show that your business is financially reliable, making it more likely for suppliers to want to work with you. Now, some lenders may consider factors beyond your credit score, like your business idea, your market potential, and your ability to execute on your business plan. What you want to do is research different financing options and understand the requirements and terms associated with each, regardless of your credit score. Here's why this is important. A good credit score helps you achieve your financial goals and gives you the peace of mind that comes with knowing you've got your money. Manners on A lot of investors and vendors see your credit score as a sign of your character and your financial responsibility. And a good credit score can help you to build a reputation for reliability and trustworthiness, while a poor credit score can undermine your credibility and limit your chances to grow your business. Here's what you need to know. Having a higher credit score, say 700 and above. It does increase your chances of getting approved for loans and and can demonstrate your credit worthiness to lenders. So what if your credit score is not good enough to build your business? What recourse do you have? Well, let's look at a few things you can do. So what if your credit score is low? Does that mean that you should give up on the dream of building a business? No, absolutely not. First of all, you want to monitor and check your credit regularly. If you need access to your credit reports, you can instantly see all three reports and scores for a $1 trial at CreditHeroScore. You want to start by confirming that all your personal information is up to date and accurate. Note any suspicious items that don't belong to you, any misspelled names or personal information that's out of date, or incorrect or accidental Duplicate accounts, which are common for people with student loans or accounts and collections, but they could also be a sign of identity theft and fraud. Now, if you see any of these items, you want to write to the credit bureaus immediately and demand that they be removed. Review the details of any negative items on your credit report, including late payments, charge offs, collections and accounts listed as settled, paid, derogatory or paid charge off. You want to check them for errors. Second, dispute negative items 79% of credit reports contain errors, so look for inaccuracies and dispute them immediately. Let the credit bureau know that you've received a copy of your credit report and that you found the following items to be errors and make sure to list each item you're disputing and exactly why you're disputing, and include any supporting documentation you have along with your driver's license and utility bill, and close the letter with this. By the provisions of the Fair Credit Reporting Act, I demand that these items be investigated and removed from my report. It is my understanding that you will recheck these items with the creditor who has posted them. Please remove any information that the creditor cannot verify. I understand that under 15 USC Section 1681A, you must complete this investigation within 30 days of receipt of this letter. If the credit bureau has not removed the item from your credit report, you'll need to send a follow up letter. So once again list the items you're disputing and why, and know that you might need to dispute the same item several times. And that's okay. That's how it goes. But be sure to pay close attention to the responses that you receive because depending on them, you may need to follow up with different types of letters. And finally, it's always a good idea to do things to boost your credit score. And the best way to do this is to pay down the balances that adversely affect your score. You can also ask your creditors to please raise your limit without performing a credit check. While some may decline that request, others may be willing to raise your limit, allowing you to improve your credit utilization ratio. And that will boost your credit score. By the way, never ever close old credit accounts. Closing an old credit card will make your report show less available credit, which will damage your credit score. It also causes that account to stop aging, which can negatively affect your average account age and that will hurt your credit too. And if the account you close is one of your oldest accounts, that damage can be even worse. So never ever close old accounts. Here's my final point. The bottom line is that your credit score matters and it can have a significant impact on you as an entrepreneur and on your business as a whole. So be sure to monitor and dispute your credit reports and take the necessary steps to improve your score. And now for my favorite part of the episode. Every week I feature one of our credit heroes inside our Credit Repair Cloud Facebook community so that you can see firsthand what real people are doing as they run and grow their business. And today's spotlight is on Chaos. Black Chaos shared a great win in our credit hero community. He said Buy Buy Collection Rebuilding Dreams One Credit at a Time first of all, congratulations on removing a collection. That is awesome and I love your slogan too. I can't wait to watch you rebuild dreams. And I'll end by saying if you still need a credit Repair cloud account, check it out. It's the software that most credit repair businesses in America run on. Just sign up for a 30 day free trial at creditrepaircloud.com freetrial and if you'd like to improve your credit score and discover how to earn extra income, repairing credit for others, check out our brand new Start Repairing Credit Challenge. The Start Repairing Credit Challenge will show you the fundamentals and foundation for fixing your credit and improving your credit score. And I will personally guide you on how to start the credit repair process the right way. Doors are closing soon and by the way, it is completely free, so sign up right now@startrepairingcredit.com and if you find value in the things that I share on this podcast, click below to subscribe and follow. Also, give me a five star review or share the show and help me to change more lives. If you'd like to read the show notes, they're posted on my blog. If you have a question or a comment, drop it down below because I read each and every one of them. I would love to hear from you and I'll respond as soon as I can. And if you want to learn the blueprint for a successful credit repair business, check out my seven Step Credit Repair Business Plan podcast. So take care Credit Hero and keep changing lives.

Hey everybody, it's Daniel again and really quick. I'd like to invite you to join what I believe is the best thing we have ever created inside the credit repair cloud community. And it is a challenge that we call the Credit Hero Challenge. If you're just planning out your business or you're just getting it started and you dream of having a successful business of your own so you can quit your 9 to 5 and fire your boss and have financial freedom or so you can add another revenue stream to your existing business. If that's your dream, you need to get into this challenge. We created this challenge to help you to create and launch your very own credit repair business to build a proper foundation for a really successful business. This challenge is going to help you to understand the strategy, the tactics and all the things you you need to be successful at credit repair. It really is the greatest thing we have ever built and it will change your life. So I recommend you do it right now. Stop everything. Pause this audio, go online and go to creditherochallenge.com that's creditherochallenge.com and join the next challenge. And there's a challenge that's starting in just a few days. So go get started right now@creditherochallenge.com com.