- It's good to establish a credit history
- Each time you purchase something on credit, or apply for credit, it's reported to a national credit bureau
- National credit bureaus track your credit and payment history
- if you apply for credit, a credit report is generated based upon your name and Social Security Number
- A "Credit Score" "FICO" is a rating assigned to you based upon your credit and payment history, and is used by creditors or lenders to make decisions about your application.
- You can and should obtain a copy of your credit report.
- Your personal credit will affect your ability to get credit for a start-up business.
How to protect YOUR credit
- Obtain a consumer copy of your credit report (small fee or free)
- Clear up any disputes on your credit report. Do it in writing (you can do it yourself for FREE)
- Do not carry too many credit cards
- Protect your Social Security Number, do not give it out haphazardly.
- Don't apply for credit too often; it will count against you.
- Don't give your credit card number to telemarketers you're not familiar with
- Be aware of hidden costs at check-cashing or rent-to-own establishments.
Ideas for Dealing with Bad Credit
- Develop a budget and stick to it.
- Obtain a consumer copy of your credit report (Free or a small fee)
- If you find an error on your report, contact the credit bureau(s) in writing.
- If you are denied credit, find out why
- Contact creditors to make arrangements to pay back old debt.
- Do not ignore student loans, utility bills or delinquent taxes-- PAY THEM!!!
- Do not apply for more credit
- Do not incur more debt
- Keep only one or two credit cards; destroy others and close the accounts.
- Work with a reputable credit counseling or debt management service.
- Be wary of quick advertisements to repair credit--there are no easy cures. (These are scams)
- Do not automatically file bankruptcy; it can be more damaging in the long run.
CREDIT BUREAU INFORMATION
Trans Union Corporation 1-800-916-8800 http://www.tuc.com/
Experian 1-800-682-7654 http://www.experian.com/
Equifax 1-800-685-1111 http://www.equifax.com/
Also contact your local
CONSUMER CREDIT COUNSELING SERVICE (CCCS)
1,400 OFFICES NATIONWIDE
The above information: was Prepared by NxLevel Guide for Micro-Entrepreneurs. I use the above information in my lectures and I teach through A New America Community Corporation