• growing business
    Credit History

    How Your Credit Score Can Impact Growing Your Business

    Regardless of the type of business you operate, your credit score can dramatically affect your business. As your business grows you may need to rely on your credit score in order to obtain much-needed financing. A high credit score can be a huge asset to any business owner. You never know when you might need money to expand, or even help so that you can stay above water during a recession.

    It’s much better to have all the cards in your favor. Your credit score is a vital number that enables lenders to choose whether or not to loan you money.

    When your credit score is less than satisfactory this can hurt your business and hold you back. By taking the initiative to build good credit you create a good name for yourself and prove to lenders that you are creditworthy.

    Why is this important?

    If your credit score is low, you have less negotiating power when it comes to getting what you need for your growing business.

    A low credit score will inhibit you from enjoying the best rates, and in many cases, a low score could mean that you won’t be able to obtain financing of any kind.

    This can be devastating when your business is expanding and then suddenly everything is put on hold. You work hard to make your business a success so be sure to also work hard to maintain your credit rating.

    How to obtain a good credit rating

    budgetThere are many things you can do to maintain a good credit rating. The first thing you need to do is develop a budget and stick to that budget.

    Be sure to include savings and avoid racking up debt. If you do decide to use your credit cards only do so if you must and be sure not to spend more than 50 percent of the balance.

    If all your cards are maxed out this can create problems and the creditors may just drop your credit line when you’re not looking.

    Be responsible and be careful what you get credit for. Look at the entire amount financed. Avoid bad debt like cars, motorcycles, and other fun toys. Build your business, gain capital and then go shopping.

    Create a good foundation for yourself and then you can be rewarded with the bounty from your business.

    I hope you enjoyed this article.

  • Choice,  Credit History,  Loans

    Will One Receive a Payday Loan Without Credit History?

    It is only natural that a lender is interested in accepting reliable borrowers who are likely to repay on time. Thus, loan eligibility standards may be rigid, which is especially true for conservative banks offering long-term borrowing options. Payday loans without teletrack, however, are known to have multiple advantages over traditional banking, including softer application requirements. How lax are these, and could you still secure a payday loan with zero credit records?

    Borrowing history is the main and the most telling indicator of an applicant’s ability to fulfill their obligations. The more loans you successfully repay – the better your score and the more willing a lender will be to accept you.

    Understandably, in online lending, so drastically different from face-to-face interviews, these records are the first thing a lender will consult.

    Here, non-existent credit records may be viewed more favorably than bad credit records, as the latter clearly indicate an applicant’s financial irresponsibility. Moreover, credit history is not the only source involved.

    no teletrack payday loans

    Upon receiving your application, the lender will initiate remote identity checks. They will access your credit records to verify identity and establish your trustworthiness.

    If credit bureaus return no matches, which means that no such records exist, the lender may turn to alternative public sources of data – for example, rental payments, property deeds or utility bills – to find transactions in the applicant’s name. Such data may be accessed through third parties (for instance, RSA). Finally, if these efforts fail as well, the last resort is a manual review.

    This naturally requires time and manpower, so not all lenders will go to such lengths. However, if they do, you may be asked to do the following:

    1. provide an email, fax, or upload a copy of a photo ID;
    2. answer additional questions by phone;
    3. visit the company’s office for an in-person interview.

    With a steady source of income, absence of borrowing history does not necessarily present an obstacle to payday lending. For young people, the absence of borrowing data is an obvious problem.

    How can you open your credit history unless you are allowed to take out loans? The same applies to recent immigrants who are yet to acquire credit records. Such applicants are usually rejected by conventional lenders, which makes cash shortages especially hard to cope with. This is exactly when payday loans may be a blessing.

    A comprehensive approach of a payday lender may ensure responsible first-time borrowers still get a chance to resolve urgent financial problems.

    By using and successfully repaying payday loans, they have an opportunity to build up a favorable credit history. This, in turn, opens them access to more complex borrowing options in the future.