nsBizTip #6
On the Sixth Day of Business Tips Network Solutions said to me
Clean up your credit.
Improving your credit takes time and practice. Naturally, we tend to focus on what’s important right now. But when it comes to making major financial decisions, like committing to a small business loan, it’s important to learn and take the necessary steps towards improving your credit before it becomes a crisis.
Keep revolving credit balances low
Rather than move it around, consider paying off your debt. Begin by identifying where your credit weaknesses are. In order to improve your standing, make it your goal to eliminate all debt. Paying it off quickly is actually easier and less expensive than paying it off over a long period of time.
To start, focus on paying down the highest-interest balance first. This will save you from potentially spending thousands of dollars extra in interest. If you start by paying double the monthly minimum, you’ll be done in half the time. Once that balance is paid off, work on the one with the next highest interest, and so forth.
Pay your bills on time
Delinquent accounts can have a significant adverse effect on your credit score. It’s important that you get payments to your creditors on or before the due date. Contact your creditors if you are having trouble making payments. If you have missed payments, get current and stay current.
Check your credit report
Get a free credit report from www.annualcreditreport.com or www.freecreditreport.com. Review it carefully to ensure there are no mistakes that could have negative effects on your credit and your interest rate.
If there are errors, dispute them through the credit-reporting agency. Creditors have 30 days to respond to your dispute. If they fail to respond, the disputed information is removed. In some instances, if the debt is old, creditors may not even bother to respond. Disputing credit report errors is worth trying since you have nothing to lose but bad credit.
Stay tuned for more 12 Days of Business Tips. In the meantime,
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the Twelve Days of Business Tips Holiday Sweepstakes
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on a classic holiday favorite. Prizes awarded daily.
Day 6 Prize:
iCARD Gift Card (prize value $200)
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