The Importance of Personal Credit for Home Business

It is difficult especially for Small Home Business to get a loan to fuel their business start up. To increase the chance of getting a loan, a home business must enhance its personal credit to win the financing grant.

Before submitting the application, a small business must check first its personal credit report. Your lender will inquire your personal credit report, so it is recommended you must check all credit activities for the last six months and get a copy of the report so you can check if you have been doing well with your personal credit. Through this, you can determine if you need to improve your rating or not.
You must protect your personal credit because this is what your lenders are most concerned of. You don’t have Corporate Credit history yet, so your personal credit will be taken into consideration.

A good credit score will not only gain your lender’s approval, but also it will give you the advantage of having a lower interest rate.

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