One of the best parts of being an entrepreneur is having your own money. But there may become a time that you may need borrow money to start your new venture or build on the business you already have. I meet some many people starting out that have no credit or bad credit. Trust me, many moons ago I had no credit, applied for every credit card in the world to try and build my credit. Taught other people how to build their credit. Now I’m here today teaching you a few simple tips you can use to build and sustain good credit. I want to provide you with a few simple tips you can use daily. That actually WORK.
Stop opening new lines of credit. You don’t need every credit card offer that’s offered to you. Plus, every time you apply for a new line of credit “credit card” your credit score decreases.
Keep your credit cards 50% under the credit line. Example: If your credit line is $1,000. You want to keep your bill under $480.
Pay your credit cards bills on time. I know you get the 15 day grace period. However, the fees that come along with it are not even worth it.
Purchase what you need. Especially if you don’t have a lot of money saved. Learn your needs from your wants fast.
Do not have a balance on all of your credit cards. Yes, that affects your credit score too.Yes, I know I just stated to keep your line of credit under 50%. Trust me, that could possibly be one of the reasons you’re getting denied for stuff is due to having balances on all of your credit cards or even the reason why your credit score is not going up.
Have old items removed or items you paid off. After seven years most items should come off of your credit report. You just have to put a little work in.
You can check your credit report with Annualcreditreport.com I suggest to my clients to check their credit report every four months to ensure that nothing is on there that should not be.
How to establish credit:
Apply for a secured credit card. Try to only apply for ones that do not have an annual fee.
Helpful resources The Ultimate Biz Planner here