In recent days, credit repair for individuals and businesses have become a hot topic for so many, because poor ratings greatly affect the creditworthiness of an individual or a business. Normally when we think about credit repair, we tend to only see it as an individual problem. Nothing could be further from the truth.
This affects businesses as well, and creditworthiness is just as important whether you’re a regular person or a large LLC. Either way, in order to avoid having a poor credit rating, it is essential to perform quality credit repair.
There are times, due to careless actions, that an individual or business’ credit ratings may start sliding downward. The keyword here is careless. It’s easy to get distracted by the everyday activities going on in your life and business and forget that everything that pertains to your finances is being documented in either a positive or negative way.
In times like these, knowledge on keeping up a good score is not just a good idea, its mandatory.
Credit repair for individuals and businesses
It’s important for any business to have a good credit since a business with bad credit appears to be mismanaged. Trust is a major issue when it comes to loans and investments, and your credit score is a direct reflection of your financial integrity.
Before conducting any financial business with another organization, investors will always first research the background of any business before they commit a single penny. This is because the past history of any businesses would be considered a risky investment for a shareholder.
There are two sides to this coin, however. First, some individuals and companies are in their situation because they were intentionally financially negligent. Others were just ignorant and simply didn’t know what they were doing, but they’re good people. Doesn’t it suck that your credit report could care less which one you are? đ All it sees is the activity, not the intent, lack of information etc.
Repairing the credit of a business is important since it ensures that the reputation of a business would be clean and without any negative impacts on the public. In order for a business to have clean credit with financial corporations, there will sometimes be the need for some experts to take control and get the ship headed back in the right direction.
You definitely don’t want to attempt credit repair yourself if you don’t know what you’re doing. We’ll get into this a little deeper in a moment, but first, let’s look at why credit repair for individuals and businesses is important.
Why credit repair is important for businesses:
- Most businesses would need to contact credit repair consultants in order to improve their reputation in the business world. This would include helping to resolve any previous loans. A business with a clean credit record would be able to borrow from other financial institutions since the business would have a clean record from other corporations.
- A business should also have a clean credit record since it ensures the public that there would be no bankruptcy involved. For instance, if a company has a bad record for credit this means that the CEO or manager of that company did not manage the company correctly. In most cases, bankruptcy is often inevitable.
- People would assume that the company has invested in the wrong business or perhaps the business has a previous record with wholesalers. It is imperative for any business to have a clean record through credit repair consultants so that the public is sure about the standing and management of such a business.
- This also applies to organizations that would provide base materials for other companies. Examples are plastics, raw wood or lumber products etc. These organizations would also research the credit of that company. A company with a bad credit streak would appear to not be able to pay the invoices. Since such companies did not hire any credit repair consultants and agents, raw material industries wouldn’t loan out their products. They might not receive their investments and that is why companies should always have a clean credit record. Since we’re talking about credit repair for individuals and businesses, let’s focus now on how this works for individuals.
Credit repair for individuals:
Here are few reasons why you, as an individual, should consider credit repair; it opens you up to many benefits. Below are some important reasons to have your credit repaired:
- Any blemish showing on your report could affect the rates you are paying on your cards. car, home, etc. If these problems are erroneous or inaccurate they can still affect your interest rates. So it is wise to try to repair as many problems as you can. This article also provides you ways to improve your credit score.
- Another strong reason to have good credit is to help you find a good paying job. A potential employer can request to see a copy of your report history and it is legal for them not to hire you based upon what is showing on that report. However, not every background check requires a credit inquiry. They must have special permission from you to access your personal history.
Personal Story:
When I was lucky enough to get an interview with the Veteran’s Health Administration’s technology division. We were advised that in order to be considered for employment, we had to go through a thorough background process. And folks, this had to be the most in-depth background check I ever had in my life. Not only did it involve running the submission of your last 7 years of addresses, personal references who lived on your street to validate your identity etc, but it also involved having a meeting with a Security Officer from the state department.
I’ll never forget, a guy with a badge showing up at my job, and requesting to have a meeting with me in an empty conference room. He had a thick manila folder in his hand and a serious look on his face. When we sat down, he proceeded to open up the manila folder, and lo and behold, what was in it? My credit report. This guy went through every negative/questionable item on my credit report, fishing for any sense of a lack of integrity on my part. Luckily, by then, I only had a few things I needed to clarify. And I got the job, but man, was I sweating bullets!
This reinforced for me the importance of having a nice looking credit report. I never knew how seriously employers take this. Subsequently, my next job also required a background check, though not as intense, that I passed with flying colors đ
Why this is important:
While you may not even be considered for the job if you have bad credit, a good credit score may mean the difference between getting hired or not if you are one of a few equally qualified prospects. Think about it. What if a new position opened, and it all came down to you and another applicant for consideration?
How would it make you feel if you were deemed as more qualified than the other person, but were unhirable all because of your credit history? Talk about upsetting. I wouldn’t wish that on anybody. It’s important in these changing economic times to make sure you have every advantage that you can in the job market. What you don’t deal with now, can bite you in the rear later.
One more thing on credit repair for individuals and businesses. Credit repair doesnât only come as a lifesaver for individuals, but it serves as a great help to businesses too. If you or your business is currently going through hard times, don’t be afraid to reach out for help from an expert. If your an individual looking for assistance as well, I would strongly recommend on linking up with a quality credit repair service.
There’s an old proverb that says “Wisdom dwells within a multitude of counsel” Sometimes its best not to go at it alone. And in certain cases, having a seasoned professional to help can prevent a lot of unnecessary headaches and frustration. It certainly did in my case.
Either way, whether you decide to go at it yourself or to get help from a team, let’s get you educated so that you’re learning through the entire process. Also, when seeking help, always remember that the Credit Repair Organizations Act protects you.
Well, I really hope I was able to help here. If you have any questions, feel free to comment or give us a call, and we’ll be happy to answer any additionals questions that you have.
If you’d like more information on this subject, you can start by getting this free guide below.
It will walk you through the process of improving your credit step by step and will also cover:
- Getting and Understanding your credit reports & scores
- Real âhow-toâ for improving your credit (these are the very tactics the best credit repair firms in the country use)
- Powerful action plans
To Better Credit!