Good Business Starts with Good Credit

Good Business Starts with Good Credit

By Teresa R. Martin, Esq., Law Offices of Teresa R. Martin, P.C.

 www.martinlegal.com

Surveys have revealed that nearly 80% of all consumer credit reports contain serious errors or mistakes of some kind.  Your credit score is the most important number in your financial and business life as well as the most influential one.  The higher your credit score, the more financial and business opportunities you will have.

Step 1: Pay your bills on time.

Because your payment history makes up approximately 35% of your credit score, a strong record of on-time payments is key. One missed payment could lower your score significantly. Stay on top of your credit card, loan, and utility bill deadlines, making at least the minimum payments.

Step 2: Pay down debt.

Large loans and maxed out credit cards are going to drag down your credit score. Try to keep a low debt-to-credit ratio, meaning that your credit card balances should be only a small fraction of your available credit. For instance, if you have a limit of $10,000, your revolving balance should stay well under $3,000. Note that credit bureaus look at both your total debt-to-credit ratio as well as the debt-to-credit ratio of each credit card, so do your best to maintain favorable ratios for both.

Note: If you “maxed” out your credit cards, this will affect your credit score negatively as well.

Step 3: Don’t close established accounts.

A short credit history may have a negative effect on your score, but a short history can be offset by other factors, such as timely payments and low balances.

 

Step 4: Limit the amount of new credit you apply for.

Each time you apply for a new loan or a new credit card, your score drops. This is because it has been statistically proven that those acquiring more credit are a bigger lending risk than those who are not. The credit scoring programs are designed to distinguish rate shopping from opening new credit. So if you are shopping for a mortgage or loan, do it in a short, focused amount of time. If you request a copy of your own credit report, or if creditors are monitoring your account or looking at credit reports to make prescreened credit offers, these inquiries about your credit history are not counted as applications for credit.

Step 5: Establish a good credit mix.

Many credit-scoring models consider the number and type of credit accounts you have. A mix of installment loans and credit cards may improve your score. However, too many finance company accounts or credit cards might hurt your score.

Because your financial health revolves around your credit score, it is important that the information your credit report contains be as accurate and up-to-date as possible. Millions of inaccurate items have been removed from consumers’ credit reports since the Fair Credit Reporting Act was passed. Why shouldn’t YOU join them and start saving money right now?

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About The DZE Power Networking Zone

The DZE Power Networking Zone is an entity comprised of National, Chapter Based, Structured, Instructional, and Lucrative Networking Groups…In a 100% Category Exclusive Environment ABOUT US: The DIVA Zone Enterprises™ LLC is a Full Service Multimedia Marketing Company. We own six marketing mediums through which we offer affordable products and experiences which reiterate our Core Value and Purpose as a Company…to uplift, encourage, inspire and educate women and men individually and as collective units to live whole, balanced, healthy and prosperous lives at home, at work and at play. The DIVA Zone Enterprises™ LLC has the perfect marketing solution for companies who desire to REACH, TOUCH and IMPACT their prospective clients… We offer companies the opportunity to touch our audience in the following effective manners… • Via Our Heavily Visited Websites…www.divazonemagazine.com, www.theswaggerzone.com, www.100divasinbusiness.com, www.100businessmenswagger.com, www.dzepowernetworkingzone.com • Via Our Daily Electronic Newsletter (The DIVA/Swagger Zone’s™ Daily Dose) Reaching Over 15,000 National Opt-in Subscribers…each weekday at 8am est. • Via Our Quarterly Nationally Circulated Flip-Side Publication…The DIVA Zone / Swagger Zone™ Magazines (with subscribers in 24 major markets and growing!) • Via Our Wonderful, Warm and Heavily Attended Events (4 Major Annual Events and Over a Dozen Networking Soirees Around the Country). The DZE Power Networking Zone™ offers business owners the ability to connect personally and socially with like-minded entrepreneurs in over 15 MAJOR markets and growing. • Via Real DIVA Talk™ TV and Real DIVA Talk™ Radio –Our Engaging, Professionally Produced Online Media Entities Reaching the Nation! • Via Our Two Thriving Business Associations…100 DIVAs in Business™ and 100 Business Men with Swagger™…with members in over 20 major markets and growing daily! We invite you to go into every market where we have presence or focus on the areas (regions) of your choice…We are HERE to SERVE YOU! The DIVA Zone Enterprises™ LLC is a Full Service Multimedia Marketing Company. We own six marketing mediums through which we offer affordable products and experiences which reiterate our Core Value and Purpose as a Company…to uplift, encourage, inspire and educate women and men individually and as collective units to live whole, balanced, healthy and prosperous lives at home, at work and at play.
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