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When financing your business, there is one very well-known variable that can make or break your chances of getting business loans: bad credit. If you have fallen victim to bad credit, it’s about time that you figured a way out.
It’s a good idea to understand just how in over your head you are before you start. Contact your credit bureau and find out what your credit score is, and what can be done to improve it. One of the easiest ways to do this is to visit www.annualcreditreport.com. This is a site that offers a free report, once per year, from each of the three main reporting agencies: Experian, Equifax and Transunion. These credit checks do not affect your credit score, and provide you with information necessary to understand what if being reported in your credit score. If you see any errors in the report, contact your credit bureau and try to have them repaired quickly.
Start paying off your debts as quickly as possible, putting priority on the ones with the highest interest rate. If you are going to consolidate your loans, be sure to do so through non-profit organizations. Most for-profit debt counselors are shady businesses that try to scam their panicked customers by giving them a worse deal than they already have. Be especially sure to avoid organizations that aggressively solicit their business; you are sure to be getting some bad business loans.
Bad credit can be improved by spending less and living more frugally. Pay your bills on time and avoid the use of credit cards. While this may seem irritating, this is the most surefire way to improve your credit score quickly.
Once you have gotten out of debt, you can start rebuilding your credit score by applying for credit cards again. Try to get good cards that offer cashback rewards and don’t require annual fees. Pay your credit card bills monthly, and you won’t have any problems. You’ll be amazed by how quickly you can get yourself out of debt!