Business Owners Bad Credit Repair Kit

Bad Credit Repair for Small Business Owners

Many business owners looking to acquire additional working capital for their business encounter obstacles when applying through traditional financing channels. The most common of these obstacles is not meeting the necessary credit requirements. As a second resort most of these potential borrowers will explore secondary or alternative financing options.

In order to obtain financing in the alternative lending space a business owner still has to possess a reasonable credit score, even when applying for business loans with bad credit lenders. Not only does an improved credit score increase your chances of obtaining a business loan, it may also lower the rates on your loan. In an effort to see as many business owners as possible receive the loan they need Shield Funding has created this bad credit repair kit.

Step One. Evaluating Your Credit Report

Example Credit ReportWhether you have been denied a business loan or some other type of financing from a bank, or you are sure that your credit is not going to meet traditional financing requirements you have to take the first step of pulling your credit reports and analyzing your history. You are allowed one credit report a year for free from each of the three major agencies and you can get them all here. Once you have the report you can take stock of the good and the bad and begin the process of removing the derogatory items.

Step Two. Removing Negative History

Dispute Bad CreditMost people do not understand the process of removing delinquent credit history but it is not as complicated as most believe, and more importantly, you can do almost everything yourself. According to Experian, “There is nothing any credit repair clinic can legally do for you — including removing inaccurate credit information — which you can’t do for yourself for free”. You can save yourself a lot of money and headaches by being proactive in the credit repair process and handling it yourself.

Once you have the report you can begin challenging any derogatory items. All three major credit reporting agencies have an easy to navigate challenge process online and you can learn more about it here. You simply choose the item you want to dispute and then offer a reason for your challenge. There is a great chance that many of the negative items can be removed simply by disputing them. It could be that an item that is outdated, erroneous or partially incorrect, or the company holding the debt does not respond. For those items that are not removed from your first attempt, you can find more information about how to remove them here.

Step Three. Improving your Existing Credit

The easiest way to begin building your credit is by acquiring secured credit cards. This type of credit card is given by depositing money with the financial institution and receiving a line of credit in the amount deposited or some percentage of that amount. The great thing about these cards is that you begin establishing positive credit history and there is even a good chance that your credit line can increase over time for good payment history. For more information on secured credit cards, the pros and cons, and a variety of options to acquire them you can follow this link.

These steps can all be completed by a potential borrower and it often results in solid credit score increases. By taking these three steps you can significantly improve your chances of acquiring a business loan at many of the different lenders available today.