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There are many challenges facing a new entrepreneur with regard to bad credit; business loans and their availability are, of course, one of the greatest. However, as the author Wallace D. Wattles would say, â€œa lean purse is easier to cure than endure.â€ Bad credit functions similarly; while the task of getting out of bad credit can seem daunting, it is actually very easy, and with good credit you will never have to bother looking for bad credit business loans again.
The first step to fixing your bad credit is to see what is keeping your good credit down; contact your credit bureau and get a credit report. (You may also want to check out annualcreditreport.com, which offers this service free of charge, as required by the 2004 FACTA legislation.) With a good credit report, you will get information on just how bad your credit is, what you need to do in order to change it, and if there are errors that can be solved by simply contacting the business credit bureau.
Next you are going to want to consolidate your loans. There are a number of ways to do this. One is to employ the use of student loans, which you can get in abundance and with low interest rates if you are going to further your education. Otherwise, it is advisable to seek the aid of a non-profit credit agency that is offering to help with loan consolidation. Be advised that any kind of aggressive solicitation…or, in fact, any mention of the company being for-profit….is usually indicative of a scam business that will do little for you beyond get you into more trouble.
Now cut up your credit cards and pay off your debts. This may take some time, but it will do wonders to your credit once executed. When you have completed this, now you can apply for new credit cards and begin using them responsibly. With just a few months of responsible financial habits, you can be back on your feet again. No longer will you be forced to scrounge for bad credit business loans; the premium ones will now be at your disposal.