You’ve Got Credit and Business Questions, We Have Answers

Q: Why is my credit score important?

A: Your credit score is important because it helps you to be able to live the life you want and become financially free. Having a good credit score allows you to get better interest rates on many of the things that you may want and long for.
Q: What are the most common things that can damage my credit?

A: Late payments, not paying at all, maxed out credit cards, too many inquiries, defaulting on a loan, filing bankruptcy, and foreclosure.
Q: What's the easiest way to register and license my new business?

A: Registering your business is required by your state. This process can be done either with a legal company or on your own with the Secretary of State.
Q: How can I secure loans for my small business?

A: There are several ways to secure a business loan. Here are just a few.
- Property: Whether it be your home, car, or commercial real estate, these can all be used to put up as collateral for a loan.
- Personal guarantee: Requires the business owner to be personally responsible for the loan, even if they're structured as a limited liability corporation.
- Savings: Lenders see cash as the best collateral, as its value is more liquid.
Q: Will checking my consumer report hurt my credit score?

A: No. When you check your consumer report, you are creating what is called a "soft inquiry". These inquiries are listed when you review your report, but they are not shown to creditors and do not affect your score.
Q: How do business credit bureaus determine a credit score for a company?

A: Payment Performance dramatically affects the way credit bureaus see you. The better your payment history, the more likely the lenders will want to lend to you. Other factors that influence a score include information about your company’s business, legal entity, size, financials, and the number of employees.