https://www.leasefunders.com/articles/ways-improve-your-credit-before-applying-for-business-financing Why you should improve your credit BEFORE applying for an equipment lease or loan

1. Improve your credit score BEFORE you apply for an equipment lease or business loan
When a possible creditor pulls your credit report, they will learn a lot about you! Basic information like
your address, employment, and credit history. Details about credit history would be their main concern.
They will look at your credit score and if its below a 650 your loan or credit card request will be listed
under high risk. That is why, it is important to maintain a good payment history with lenders. The higher
your credit score, the easier it will be to get financing and the rate will be cheaper than someone with
bad credit.
If you have bad credit, its in your best interest to improve your credit before you apply for a lease or
loan..
35% of your credit score is based on your payment history.
There are no big secrets to having a good credit score. Paying your debts on time is one of the biggest
factors. You maybe saying to yourself, ok that’s fine but I’m looking for information on how to finance
my start up business. Why should I care about my consumer credit?
Well your business is new. It has no credit so the banks don’t know how well your new business will be
able to pay its bills So lenders will use your personal credit. And if you have bad credit, if you have the
time, its worth it to fix your credit before you apply for a lease or a loan.
Yes there are banks that will finance bad credit, heck, we work with all of them! But the rates are higher
for bad credit people since they pose a higher risk.
One of the best ways to keep your credit score high is simply pay your creditors on time. Late payments
and skipped payments can decrease your score by several points. If irregular payments become a habit,
your credit score will continue to diminish.
If possible, submit payments a couple of days ahead of the due date.
Reduce Debts and Maintain Low Balances
Too much debt will have a negative impact on your credit rating. Most customers with maxed out credit
cards are able to keep up with minimum payments. However, excessive debts make prospective lenders
nervous. In cases like this, it may be tough to obtain prime rates on home loans and auto loans.
Low credit card balances will not have a damaging effect on your credit rating. Consumers are invited to
maintain credit balances below 25 percent of their credit limit. If your balance exceeds this amount, take
the necessary actions to reduce debts. This may include paying triple the minimum payments,
transferring the balance to a 0% interest credit card, or obtaining a debt consolidation.
Ways to Safeguard Credit Rating
In addition to boosting your personal credit score, cautious credit report monitoring is essential. Sadly,
millions of individuals become a victim of identity theft annually. Proving identity theft is difficult. Thus,
victims often have to live with the ramifications of having their identity stolen

2. Need more help in fixing your credit. Check out the site BadCreditResources.com They have lots of
information on how you can improve your credit!