Understanding the Importance of Monitoring Your Credit
Have you looked at your personal and business credit reports lately? Do you know if everything on them is being reported accurately? If you are to be a successful businessperson, it is vital that you make a habit of checking your credit history.
Its very simple. When you need to obtain funds for your business through a line of credit (or loan), or when you want to apply to a new vendor, they are going to look at your credit record. If you have not made a committed effort to be sure that your information is being reported correctly, and you show up with negative items, than these lenders may not view you as being able to manage your debts well and may decide not to trust you with their money or their equipment. The best way to make sure this doesnt happen is to regularly check your credit reports and verify that everything is in good standing.
Heres what you should watch for:
1. Items that should not be there. Obviously you want to be sure two things aren't on your report. Number 1 is any item youve cleared up previously, and number 2 is any item that never should have been there to begin with. Suppose you had a negative mark previously on your credit report. Youve been working to clear it up and are keeping the paperwork showing the effort you made to correct this problem. Without this documentation you would not be able to fight this bad mark when it reappears. All credit reporting agencies are known to have a high rate of errors. There easily can be items on your report that are not yours, but were somehow put on it in error. The sooner you are aware of them, the sooner you can have them deleted. 2. Anything that should be there. If you have built up positive credit because of paid off loans or other large debts being in good standing, then you definitely want these to appear on your record. Its very important that your credit history includes these on-time, paid debts because when lending institutions or vendors are considering extending you a business line of credit, theyre going to evaluate your creditworthiness by the amount of current, unpaid outstanding debt as well as previous paid debt. 3. Your history is showing. With ID theft running so rampant these days, its not just individual people who have to keep an eye on their credit history in their reports. An ID thief can just as easily steal the financial data from your business and begin a shopping spree under your businesss name. Regularly verify that all the items on your credit reports belong to your business " whether or not it is positive or negative. Review your credit to be sure the entire activity showing as well as the accounts showing belong to your company. Don't hesitate to call on anything suspicious. You may not recognize something, but it is way better to ask than to risk a bad situation occurring.
Its very simple. When you need to obtain funds for your business through a line of credit (or loan), or when you want to apply to a new vendor, they are going to look at your credit record. If you have not made a committed effort to be sure that your information is being reported correctly, and you show up with negative items, than these lenders may not view you as being able to manage your debts well and may decide not to trust you with their money or their equipment. The best way to make sure this doesnt happen is to regularly check your credit reports and verify that everything is in good standing.
Heres what you should watch for:
1. Items that should not be there. Obviously you want to be sure two things aren't on your report. Number 1 is any item youve cleared up previously, and number 2 is any item that never should have been there to begin with. Suppose you had a negative mark previously on your credit report. Youve been working to clear it up and are keeping the paperwork showing the effort you made to correct this problem. Without this documentation you would not be able to fight this bad mark when it reappears. All credit reporting agencies are known to have a high rate of errors. There easily can be items on your report that are not yours, but were somehow put on it in error. The sooner you are aware of them, the sooner you can have them deleted. 2. Anything that should be there. If you have built up positive credit because of paid off loans or other large debts being in good standing, then you definitely want these to appear on your record. Its very important that your credit history includes these on-time, paid debts because when lending institutions or vendors are considering extending you a business line of credit, theyre going to evaluate your creditworthiness by the amount of current, unpaid outstanding debt as well as previous paid debt. 3. Your history is showing. With ID theft running so rampant these days, its not just individual people who have to keep an eye on their credit history in their reports. An ID thief can just as easily steal the financial data from your business and begin a shopping spree under your businesss name. Regularly verify that all the items on your credit reports belong to your business " whether or not it is positive or negative. Review your credit to be sure the entire activity showing as well as the accounts showing belong to your company. Don't hesitate to call on anything suspicious. You may not recognize something, but it is way better to ask than to risk a bad situation occurring.
About the Author:
Keep a close eye on your credit report to be sure the information it contains about you and your business is true and accurate. Learn all you need to know about improving your creditworthiness as shown by the various business credit bureaus.
posted by Credit Counseling at
3:03 PM
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