Repairing Bad Credit - Tips for the Woman in Business

Some business loans might require good credit. Here are tips for repairing bad credit:

So what is credit scoring?  Credit scoring is a way for lenders to determine how much risk is involved in lending money to you and based on that risk they may decide not to lend money to you at all or change the terms of the loans to match the risk.

Who uses credit scoring? Credit scoring has been around for ever, that is since 1950s, and it was first used for issuing credit cards and auto loans. Now all sort of creditors including business lenders use it. But they also consider other factors such as your salary, your employment and your assets.

The following are an interpretation of what various FICO score ranges mean. 

• Excellent: Over 750 
• Very Good: 720 to 750 
• Acceptable: 660 to 720 
• Uncertain: 620 to 660 
• Risky: less than 620 

Repairing Your Credit:

1. Contact all of your creditors and work out a manageable payment plan
2. Get them to lower or eliminate your interest rate
3. Offer a balance payoff smaller than what you currently owe
4. Start making larger payments to get the debt paid off sooner 
5. Contact all 3 credit bureaus to see exactly what is on your credit report and dispute false items

Four simple tips to improve your credit score: 

    * Pay your bills on time, especially your mortgage and your installment loans. 
    * Borrow below your credit limits and do not max out your credit cards. 
    * Carry one or two credit cards only.
    * Never apply for several credit cards at one time.