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Your credit score is an important way for lenders to easily judge your credibility as a borrower and plays a large role in their ultimate lending decision. The higher the credit score, the more likely you will be able to open a line of credit at the best rate possible. Here are some tips on managing your score to successfully grow your business:

#1 Be sure to pay all bills in a timely manner and stay within your limits. Although seemingly simple, it is easy to fall behind on payments or overborrow. It may seem beneficial at the moment however these decisions will have lasting effects on future borrowing opportunities.

#2 Keep updated on your credit report and ensure that all the information is correct. Even items such as address can potentially affect your score. It is important that any false statements be amended.

#3 Register to vote at the address listed on your credit report, as lenders use this information to confirm what has been listed. If the information does not match, your application could be determined unsuitable.

#4 Be purposeful in credit applications. Lenders have access to previous applications, and if they see several in a short period of time they will be suspicious or question your capability of receiving a loan.

 

It is important to remember that credit scores are ever changing and therefore can be potentially damaged or improved by every day decisions. By staying informed and being cognizant of factors that play a role in your score, you can ensure a better borrowing experience.

 

For more tips and tricks on helping you grow your business, follow Budget Mastermind on LinkedIn or @budgetmastermnd on Twitter!

Budget Mastermind provides business finance solutions to help grow businesses. If interested in our services, visit our website at www.budgetmastermind.com.