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Business
A high credit score is important to every adult in this country but even more important to those that own a business. Very rarely does a small or medium sized business owner get the luxury of not personally guaranteeing large purchases. This means that getting approved for company purchases or credit is not only dependent on the company financials but also on the credit score of the business owner(s).
When making a large company purchase or applying for a loan/credit line, your company will be looked at for debt-to-income ratios, income stream stability, payment history and the current relationship that you have with the institution you are purchasing/borrowing from. Additionally, your personal credit history and score will be used. One, or a combination, of the three credit bureau (Transunion, Equifax, and Experian) scores will be used.
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Your standard credit score (known as a FICO score) will be negatively affected by things such as; late payment histories (especially on mortgages and car loans), liens, judgments, collections and excessive checking of your score by lending institutions. However, things that are not considered negative or positive are race, religion, national origin, sex, marital status or the use of public assistance. In the age of identity theft and rampant credit, a big unknown factor that can lower your score is false or incorrect information. Checking your credit report every few months and/or using a credit guarding service will help in seeing these hidden and devastating hits to your credit and having them corrected as quickly as possible.
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