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As a woman in business, your credit score can determine whether you succeed or fail. Without sufficient credit, even the best business plan will often go nowhere.
A lower credit score can mean being denied credit cards or loans. These are valuable assets that can help your business grow and thrive!
Here are some great tips that can help you with raising your credit score – fast and easy.
1. Keep your account balances low.
High account balances can lower your credit score. This is true even when you make regular payments on time each month. Smaller weekly payments can help you maintain a lower balance on an account if you make frequent charges. A low balance can be just as important as paying your debts on time.
2. Manage your accounts wisely
All credit is not equal. Before you cancel old credit accounts remember that older active accounts carry more weight. Use your credit wisely by making small purchases consistently. Pay off your balances as soon as they are incurred. This will show you are trustworthy and responsible.
3. Don’t open numerous credit accounts in a short period.
Simply opening several credit card accounts within a short period can hurt your credit score. Even when used responsibly, this indicates that you are relying on credit. That can make you seem less creditworthy. Opening several accounts within the same month can greatly lower your score.
Be conservative with the credit that you have available. Just because you can open a new account does not mean that you should. Consider what a new account will mean for your credit score.
4. Maintain different types of credit.
Having just a single type of credit will not help you achieve a great credit score. If you only have a credit card or a loan, this may be seen as a limited ability to manage your money. It is better to have credit cards, a loan, and a mortgage. As long as you make timely payments, this can boost your credit score significantly.
5. Request copies of your credit report from all three major credit agencies.
You can request a free copy of your credit report from each of the three major credit agencies once each year. This will let you know exactly what debts are listed. Until you know where the problems are, you cannot fix these issues. It’s also good to know your credit scores from all three-bureau. This will give you a complete look at your credit.
6. Manage any missed payments.
Life happens, and sometimes that means missing a payment. Sometimes a creditor may be willing to remove a negative reference if you ask. This is especially true if the missed payment is a one-time thing. It never hurts to ask and you may be surprised at the result that you get.
If you do miss a payment, make it as soon as possible. Once the account is up to date, your creditor may be more willing to work with you. Your creditor is a business and they value your goodwill and patronage.
7. Dispute any errors on your credit report immediately.
The longer an error stays on your credit report, the more difficult it will be to fix. Send a dispute letter as soon as you notice the error. Send the letter by certified mail with a return receipt requested. A single late payment error could cost you between 60 and 110 points.
8. Avoid new purchases on credit cards whenever possible.
When you make new purchases on credit cards, they can hurt your credit. New purchases mean a higher credit utilization. It is better to pay cash for these purchases if you can. You will be rewarded with a lower utilization ratio and a higher credit score.
As a woman in business, your credit score can be a big asset or it can hold you back. The eight powerful strategies outlined above will help you improve your credit score. Don’t let your hard work and talent go to waste. Use these strategies to get the credit you deserve!