Paul Francis Bonus And Reviews

If and when you are facing issues regarding bad credit, the best way out is to write credit repair letters to the credit bureaus and collection agencies. These letters are generally known as “Credit Repair Letters”. There letters are useful in many ways and many situations depending on person to person. Few of the most common forms of credit repair letters are known as dispute letters, debt violation letters, pay for delete letters and cease and desist letters etc. If you know how to write credit repair letters, you can surely reapir your bad credit report effectively.

Dispute letters
These types of credit repair letters are usually written when you have to mention some points of dispute related to an account, public record or even the personal information. The dispute letters are quite effective if written properly and professionally. It’s is not so very hard to find a few of samples of these kind of letters available online but the problem is that those letters are way above the ground realities. Hence it is always recommended to amend the letter as per your personal needs and cut off the unnecessary things from it or else it might land up in the bin, ruining all your efforts. There is neither any need to mention too much of the laws in the first letter and nor there is any need to show threats to litigation as per the laws. This might end up hurting your case even more than from helping you to resolve it. You must learn how to write credit repair letters today!

Debt validation letters

This criteria of credit repair letters is usually written for a validation of debt by a credit repair agency. The Federal Fair Debt Collection Practices Act better known as FDCPA makes it a right for every debtor to have a fair knowledge and or challenge the written verifications of a debt from a debt collector. You must learn how to write credit repair letters today! Pay for delete letters
This type of credit repair letter is usually written to a debt collector for negotiations on the pay on an existing account, hoping the account to be terminated or to be updated positively on your credit report.

Cease and desist letters
This type of credit repair letter can be written to anyone. Usually they are written to debt collectors for the request for removal of contact with you. This type of letter should be sent with the receipt so that you have a proof for future relevance. These receipts can help you a lot in the court if need, so that you can easily prove that the collector actually received the letter from you and now they are violating your federal rights.

For easy tips and techniques visit Easy Credit Repair Kit.

Article Source: http://www.articlesbase.com/credit-articles/how-to-write-credit-repair-letters-tips-and-techniques-606002.html

About the Author

For easy tips and techniques visit Easy Credit Repair Kit.

Credit Repair and Holiday Spending

Credit repair is all about restoring and improving your credit. The holiday season makes financial demands on us that can send our credit scores into a tailspin if we are not careful. From Thanksgiving through New Year Day many of us find ourselves spending money faster than any other time of the year, which can create a potential credit repair challenge.

Credit Repair Facts

Parties, family dinners, gifts, travel, and even home decoration quickly add up. By the time our January credit card bill arrives we can rack up an impressive and daunting balance. In the world of credit repair, knowledge is power, so let’s take a look at the facts and see if there is a way to mitigate the collateral damage.

Revolving Debt is Not Always Bad

There is really nothing wrong with revolving debt. Credit cards can be handy, and on occasion they can be a lifesaver. Life is full of unexpected surprises. The car may need repairs, the refrigerator might break down; the list of possible surprises is endless. If you don’t have reserves, or just want to manage your cash flow, credit cards can be a convenient resource.

When Every Point Counts

The problem with revolving debt arises when it impacts your credit score in a moment that you need it for a major purchase. Many people turn to credit repair in these situations for urgent help. If you are getting a mortgage you should be aware that every point on your credit score can affect your interest rate. Automobile financing is also credit score sensitive.

Credit Repair and the Right Score

If you are going to benchmark your scores for credit repair purposes you need to be aware of the different credit scores available. The credit scores that lenders use when underwriting your loans are called FICO scores. FICO is an acronym of Fair Isaac Corp, the developer of the credit scoring model.

A Caution about Bureau Scores

Credit bureaus do not sell FICO scores directly to consumers. The credit scores that you can purchase from the credit bureaus and their army of internet vendors are not the scores used by lenders and often differ by 100 points or more. These scores can provide useful information, but are of less practical use for your credit repair.

Credit Repair and Revolving Debt

If you want to purchase your genuine FICO scores you need to visit MyFico.com, the website of Fair Isaac Corp. All three scores currently cost approximately $50 combined. The FICO scoring model puts significant emphasis on your revolving debt. The most recent release of the scoring model acknowledges five different levels of card usage: 20, 40, 60, 80, and 100 percent.

Balance Up Scores Down

The more of your available limit you use, the more impact it will have on your scores. You should think of a balance between 40 and 60 percent of your total available limit as neutral to your credit scores. If your balance is over 60 percent your score will fall. Over 80 percent, your score may fall up to 50 points depending on the overall strength of your other credit, and if you max out your balance expect to lose over 100 points; this is credit repair trouble.

Balance Down Scores Up

Conversely, the lower your balance, the better your score will be. If your balance is below 40 percent you will get bonus points, and below 20 percent you will be optimizing your score. If you need your credit to be at its absolute best try to reduce your credit card balances below 20 percent of your available limit. This can produce credit repair magic.

Allow Enough Time

Here is some holiday credit repair cheer. If you run up your balances, don’t worry. As soon as you pay down your cards your scores will rebound as if nothing happened. If you do not need your scores anytime soon don’t worry about your balances. Spend as necessary, but beware that when you need your scores it can take 60 days for the credit bureaus to report the new reduced balance, depending on the reporting cycle of the particular card issuer.

Easy Post Holiday Credit Repair

Have fun during the holidays, and do what you need to do. But be aware that when the season is over, if and when you need your credit scores to be at their best you will want to put your credit repair plan in action and pay those balances down as much as possible. Happy holidays!

Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.

Article Source: http://www.articlesbase.com/credit-articles/credit-repair-and-the-holiday-season-631215.html

About the Author

Jim Kemish, a nationally recognized consumer advocate and credit repair expert, is the president and founder of Sky Blue Credit Repair, a leading credit repair service since 1989. Jim is also a regular contributor to The Credit Repair Blog, a prominent consumer resource.

Getting the Collection Letter

Many people in credit repair programs have received collection letters. Sometimes the credit repair effort itself can attract a collector, but you can turn the situation to your advantage. Collection letters are designed to intimidate, and include enough threatening legal language to upset anyone. Many recipients of collection letters opt to ignore them. This is a mistake. You have an important right when contacted by a collector, but it only lasts for 30 days.

Debt Validation as a Credit Repair Tool

The Fair Debt Collection Practices Act (FDCPA) is the body of law that governs the collection industry. Under the FDCPA, if you receive a collection letter you have a powerful legal right called debt validation, an excellent weapon in the credit repair process. Upon your request, a collector must provide proof of their right to collect, as well as an accounting of the amount claimed. Further, an internal memorandum reiterating the information provided in the collection letter does not satisfy the obligation. Documentation must be solid and objective. If the collector cannot provide the requested proof, they must cease all collection efforts. But you must request this documentation within 30 days.

Collector Do’s and Don’ts

Under the FDCPA collectors face a long list of prohibited behaviors. Many of these rules are ignored, bent, and often broken. Here is a sampling of behaviors which collectors are prohibited from engaging in:

• Contacting consumers by telephone before 8:00 AM or after 9:00 PM
• Calling the same consumer in a repetitious manner
• Threatening to make embarrassing contacts with an employer or other person
• Contacting a consumer at his place of employment after the consumer has advised the bill collector not to do so
• Inquiring about personal property, and implying that these items may be confiscated to satisfy the debt

Cease Communication Letter

You have the right under the FDCPA to demand that a collector cease all communication with you. But like many credit repair tools this must be used with caution. If you choose this course of action, just put your demand in writing. A cease communication letter will not prevent collectors from filing suit against you, but it will stop telephone calls and collection letters. Be aware that 5% of all complaints received by the FTC about FDCPA violations in 2007 related to collectors ignoring cease communication letters. If the calls keep coming you should send the letter again, only this time send it certified and copy the FTC.

Problems Before Statute of Limitation Expiration

Credit repair requires knowledge; you must understand the possible consequences of your actions. If you send a cease communication letter to a collector prior to the expiration of the statute of limitation (SOL) you may push them to file suit. The SOL for debt is state specific and debt-type specific. You can find the information on the web. But be careful. A collector may apply the SOL from the state where the contract originated or your current state of residence, so check both. On the other hand filing suit can be expensive and is not always the best move for a collector. Many collectors return the debt to the original creditor upon receipt of a cease communication letter. This may mean that another collector will be in touch soon and your credit repair efforts may need to be renewed.

Getting to Know Your Statute of Limitation

If you get a collection letter you should check your SOL. The SOL clock starts with the date of original default on the original debt. Collectors are notorious for “accidentally” resetting the clock. Many people starting a credit repair program discover how frequent this practice is when they examine their credit reports. The date of original default is the first time you were late in the sequence that led to the charge-off or collection status. Also note that the SOL for collection has nothing to do with the reporting limit on your credit report. The SOL for debt is usually far less than the normal seven-year limit for credit reporting.

Credit Repair Solutions After SOL Expiration

If the SOL on the debt has expired you are home free. Here is a bit of credit repair magic. A collector can attempt to collect beyond the SOL, but since they can’t get a judgment they have no way to enforce their efforts. A cease communication letter will put and end to their presence in your life. You have other options as well. Remember that the SOL is different from the reporting period limit on your credit report. The collector may have no way to enforce a collection, but it can continue to show on your credit report. If you would like to negotiate the debt, now is the time. Any money a collector gets past the SOL is a gift, so start your offer as low as you wish. You may even be able to negotiate for complete removal from your report, a perfect credit repair outcome.

Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.

Article Source: http://www.articlesbase.com/credit-articles/credit-repair-and-the-collection-puzzle-443224.html

About the Author

Jim Kemish, a nationally recognized credit repair and restoration expert, is the president and founder of Sky Blue Credit, a leading credit repair service since 1989. Jim is also the president of Power Mortgage, a Florida mortgage company based in Delray Beach, Florida.

Your Credit Repair Lifeline

No matter how bad your credit might be there is a quick way to get your credit scores moving in the right direction. The FICO scoring model places considerable weight on your ability to manage your debt; and credit cards offer the perfect way to demonstrate your responsibility and influence your credit scores quickly.

Get Back in the Action Right Now

If the events of life have left you without credit cards, now is the time to get back in the action. It does not matter what your credit report looks like. Forget the past. Credit repair is about the present. Forget your fear of denial. You can do this now. Secured credit cards are the perfect credit repair option.

Secured Cards Done Right

Open two new secured credit cards today. Secured cards require a small savings deposit that will secure a modest line of credit. Once you have your cards it is time to work the system. It’s credit repair magic. Just maintain your balances under 20% of your credit limit. Don’t pay them off, and don’t let them go above 20% of the limit. Do it right and watch your scores improve.

Pay Down Your Balances

If you have plenty of credit, secured cards are not for you. But here are some facts that should aid your credit repair efforts. The FICO credit-scoring model is very sensitive to the relationship between your current balance and your high credit limit. FICO acknowledges six different balance-to-limit ratios: 20%, 40%, 60%, 80%, 100%, and over 100%. The first two are positive, 60% is neutral, and 80% and 100% are increasingly bad. To go over the limit is credit repair suicide.

Up Your Limits

Pay down your credit card balances and your scores will improve on the next reporting cycle. The affect can be dramatic. But there is another way. While you work on paying your balances down you should try this easy credit repair strategy. Call the credit card issuers and ask them to increase your limit. The affect on your credit score will be the same as if you paid your balance down. Can’t hurt to ask!

Give Uncle Bob a Call

Additional card member accounts still work! For those unfamiliar with the concept, here is an overview. Let’s say old uncle Bob has fantastic credit. If he is willing to make you an additional card member on one of his well-managed credit cards you will miraculously inherit the credit history of the card as if it were yours. It’s a real credit repair boost. So if you are on good terms with uncle Bob, give him a call.

A Caution About Additional Card Member Accounts

There is a downside to the additional card member strategy. Fair Isaac and Company, the creators of the FICO scoring model, are well aware of the loophole and have already blocked the benefit in the latest release of the software. The credit bureaus always take time to adopt a new release; you just might have another year to use this credit repair trick. If you take this route, you should also open two new secured cards and start building real credit of your own.

Pay off an Old Judgment

Here is an interesting credit repair trick. Unpaid judgments can report for seven years or the state statute of limitation, which ever is longer. Statutes of limitation on judgments are usually longer than seven years, and they can be re-filed in most states. Paid judgments are a different story altogether. Paid judgments are removed by the credit bureaus seven years from the original filing date. So if you have a judgment that is seven years old, payment will cause it to be removed from your credit report.

Negotiate That Collection Away

If you have a collection account on your credit report chances are that there is a collector that would love to hear from you. Collectors play hard, but they also know that something is better than nothing. And if you hang up without making a deal, they get nothing. You can always try to negotiate with a collector, but there is one circumstance where you are virtually guaranteed to succeed…

Credit Repair and the Statute of Limitation

Collections can only be enforced through the courts for a limited time. Once the statute of limitation expires a collector may talk big, but they have no way to force payment. They can’t get a judgment, and if you send them a cease communication letter they can’t call you again. The collection, on the other hand will linger on your credit report until the seven years are up. Are you past the statute of limitation? Want to get rid of the collection for ten to twenty-five cents on the dollar? Call your collector, and make them an offer. Your credit repair efforts will pay off.

Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.

Article Source: http://www.articlesbase.com/credit-articles/how-to-win-the-credit-repair-game-451244.html

About the Author

Jim Kemish, a nationally recognized credit repair and restoration expert, is the president and founder of Sky Blue Credit, a leading credit repair service since 1989. Jim is also the president of Power Mortgage, a Florida mortgage company based in Delray Beach, Florida.

Your FICO score is crucial information you need before applying for a loan. It can determine your loan interest rates, not to mention apporval. Your FICO socre is different from your regular credit scores. Other sets of rules and algorithms are used compared to a regular credit score to attain your FICO score. A FICO score is used by many loaners to gauge your creditworthiness. it’s seen as your true financial report card. So it’s very important to obtain your FICO score before you apply for a loan. Credit bureaus, such as the three better ones, Equifax, Experian and TransUnion all accumulate your data from your banking companies, loans and savings data, finance and credit unions regarding your credit track record. Each bureau may have different data about your credit worthiness and hence an integrated extensive report makes great sense. This is basically what makes up your credit report. You can obtain your credit report for free from all 3 credit bureaus once an year. If you want to s ee it more than once an year, it’ll cost a little. There’s even offers from credit monitoring services that offer it for a free trial. Unfortunately it’s very rare to find a free FICO score offer. Mosr credit bureaus want you to pay for your credit score. Same with a FICO score.

There are several ways to help improve your credit score. This would be to clean up your credit report. Your credit score, inlcuding your FICO score, is a numeric representation of ywhat’s on your credit files. There’s plenty of online resources that offer tips for fixing your credit score. The first advice usually given is to pay down your balances. But it’s also about getting the errors deleted from your files. Also you can get some of the old data that’s several years old deleted from your files. There are credit repair services that charge an arm and a leg, but the most effective way to fix your credit is by doing this yourself. Not to mention it’s free if you do it yourself.

Article Source: http://www.articlesbase.com/quotes-articles/why-your-fico-score-is-important-1644572.html

About the Author

Josh Hudson writes about free fico score and its difference from regular credit scores. A fico credit score is also much more crucial for loan approval.

Credit Repair Hyper Drive

Credit repair can take time, or not. There are many situations where you can get amazing results very quickly. Your credit scores can have a profound impact on your life, and every point counts. Here are seven potent power-packed credit repair solutions you can put to use right away. Are you ready? Let’s go!

Get Your Revolving Balances Down

Fair Isaac Corp, the mastermind behind the credit scores used by virtually all lenders, has been tinkering with the formula they use to calculate your scores. The recent additional emphasis they have put on revolving balances has taken many people by surprise. Are you listening? A maxed out card can now cost you as much as 150 points. Ouch!
Well, there is some good credit repair news here too; pay your darn balances down and watch your score rocket upward. Want to know how far to pay your cards down? Under forty percent is good, under twenty percent is the best. If money is tight you might even consider borrowing from friends and family to make this happen. If you need your scores for a mortgage or car loan you may be living with that interest rate for many years to come.

Challenge Iffy Collections

Do you have collections? Are you ready for a little credit repair magic? Collectors are very different from creditors. Collectors buy and sell collection accounts. When a collector purchases an account they can report it to the credit bureaus. When they sell an account they are supposed to remove the collection from your credit entirely. Unfortunately, there is no incentive for them to cease reporting, so you need to challenge these items. If the collector no longer owns the account you will see it vanish from your credit report. It’s credit repair magic.

Negotiate for Deletion

There is a silver lining to the recession that we are currently struggling through. Collectors are as hungry as everyone else. If a collector contacts you for payment on a legitimate debt you may discover they are willing to negotiate. Your balance is not the only thing that you can negotiate. Collectors have the ability to withdraw the entire account from your credit report. It might be a relief to get an old debt paid off, but when it comes to credit repair it is better to have no collection account on your report than a paid collection.

Boost Your Credit Limits

The credit crunch has caused credit card issuers to tighten their guidelines. Little credit blemishes may now trigger over-the-top responses from credit card companies. American Express has been on a campaign to reduce credit limits on card holders for almost any reason. So this tactic may not work, but it’s worth a try as there are still a few friendly creditors out there. Call your credit card company and ask them to increase your limit. The result will be the same as if you had paid your balance down. For the cost of a phone call you might increase your scores, and maybe a lot!

Call Mom and Become an Authorized User

Another little twist that Fair Isaac Corp added to their latest version of their credit score formula is to block the benefit of purchased authorized user accounts. Until recently you could purchase authorized user status from gray-market brokers and watch your score jump right up. Fair Isaac caught on and put an end to this iffy credit repair practice. However, their filters are still allowing the full benefit for legitimate authorized users. So call Mom and have her add you to one of her perfect credit cards for a nice credit repair boost.

Avoid Store Cards

Store cards, and more generally, consumer credit (such as furniture store accounts) are useless for building your credit, and are likely to put a big dent in your scores. So if you are shopping and are offered a new account in exchange for a discount, think twice. Saving money is a beautiful thing! But if you need your credit scores in the immediate future for any major purchase avoid these accounts like the plague. How bad is it? You are likely to lose one hundred points. It’s credit repair suicide.

Call Credit Repair Pro

If you really want to put some muscle behind your credit repair effort, call a credit repair professional. They will proof read your credit reports, identify everything that should be done and insure that you are not missing anything. When it comes to credit repair every little bit counts. Good luck!
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.

Article Source: http://www.articlesbase.com/credit-articles/seven-quick-credit-repair-solutions-632906.html

About the Author

Jim Kemish, a nationally recognized consumer advocate and credit repair expert, is the president and founder of Sky Blue Credit Repair, a leading credit repair service since 1989. Jim is also a regular contributor to The Credit Repair Blog, a prominent consumer resource.

Every time you promptly pay a bill or retire an old debt, you improve your “FICO” score.  Every time you fall outside your grace period or miss a payment, you harm your score.  Almost every financial transaction has consequences for your credit history, and financial institutions use that history to determine whether or not you have proven yourself worthy of credit.  The different agencies compute your credit scores using slightly different formulae.  Some lenders use Trans-Union and Equifax services, but the majority prefer the formula Fair Isaac Corporation applies to your financial history—your FICO.

Your FICO score determines your interest rates on major secured loans—your house and your car; it also determines your rates on unsecured credit—retailers’ revolving charges and all your bank cards.  Your FICO score also determines how much you will pay for auto insurance, because insurance companies now calculate their exposure not only according to your driving habits but also according to your payment habits.

Your FICO score theoretically may range from 300 to 850.  In the real world, FICO scores range from 550 to 770.  If you number among the elite, you may score an 800; but if you have an 800-point FICO score, you probably are lending money rather than borrowing it.  Among American families, FICO scores average between 690 and 720, right on the margin between adequate and excellent.  Credit scores above 720, and especially scores above 750 qualify for banks’ and credit cards’ preferred rates.  A score in the low 600′s translates “good luck with that.”  Not surprisingly, the New Depression has dragged down Americans’ average credit scores, forcing lenders to adjust their standards according to new market conditions.  Many lenders, however, have raised their qualifying standards, reducing their risk of accumulating “toxic assets.”

Financial experts strongly recommend you check your credit report at least once each year, and a handful of websites provide free access to your FICO.  The majority of credit reporting services require you to subscribe either online, the preferred method, or by mail.  Typically, when you become a subscriber, you receive monthly updates of all three credit reports.  A few will alert you to any significant change at any time.

The meaning of your FICO scores.

Lenders look at the range into which your score falls, and differences of a point or two matter very little. A 721 credit score distinguishes you as an extremely low-risk borrower.  Unless the world ends or you spontaneously combust, lenders safely may assume you will honor your obligation and repay your loan.  Given your credit history, you probably have “apocalypse insurance” and will pay off your loan no matter what happens.  A  722 credit score has the same implications, but 719 puts you on the bubble.  You will get credit, but you will pay more for your bowing privileges.

• If you have scored 720 or more you enjoy the benefits of good credit citizenship.  When you apply for a home loan, you ought to receive the lowest available interest rate, and when you accept bank cards, both fees and interest ought to encourage your liberal use of the cards.  Keep in mind that your skilled, strategic use of credit protects your high score.  You lose points for paying cash wherever you go. For example, a 721 credit score or a 722 credit score puts you in the category of a low risk borrower.
• If you have scored 675 to 719 your credit remains satisfactory, but you have fallen out of the big leagues.  Most lenders will grant you credit, but they will make you pay more for the money you borrow, and especially they will impose much more costly penalties if you miss a payment or default on your obligations.
• If your FICO totals between 620 and 674 you will not qualify for some kinds of credit.  Premier credit cards will decline your applications, and many cautious lenders will reduce your spending limits.  Credit card issuers also may charge higher annual fees and make you pay larger penalties as a result of your poor payment history.
• If your FICO hovers below 620 you become a “sub-prime” borrower, facing severely limited credit options and enduring considerably higher interest rates.  With a considerably below average FICO score, you also become a target for predatory lenders, the kind who assured mortgage borrowers, “Of course, you can afford that million-dollar house on your hundred- dollar salary”.  A below average credit score warrants careful examination of your FICO report, suggesting some information may be outdated or incorrect; and your low score may warrant some work with a debt counselor or financial planner.

You  can  find more information about   722 credit score on our websites.

Article Source: http://www.articlesbase.com/credit-articles/is-720-a-good-credit-score-1907894.html

About the Author

You  can  find more information about 722 credit score on our websites.

It has always been said that owning a home is the American dream.  Millions of small business owners will argue, however, that owning one’s own business is really the American dream.

While being your own boss offers its rewards, owning a business is not easy.  Without a doubt, entrepreneurship has its obstacles which, if not navigated correctly, can keep the dream from being fulfilled.  One of these obstacles can be the lack of access to financial resources.

Just as a credit card company will look at your credit score before extending you credit, business lenders rely on a similar credit scoring system to determine your ability to borrow money for your business.  But until you’ve developed business credit history within the various business credit reporting agencies such as Dun & Bradstreet, Experian Business, and Business Credit USA, lenders will be reluctant to extend business credit to you.  It is for this reason that your personal credit history and personal credit score is so important.

As a small business owner, there are usually three reasons why you need to borrow:

• The first and most common reason is to purchase assets such as inventory and would be repaid once the new inventory is converted into cash as inventory is sold to customers.
• The second reason is to replace or repay other types of credit such as money you may have borrowed from credit cards, unsecured lines of credit, or private investors.
• The third reason is to replace equity. If you wish to buy a partner’s share in your business or need to repay monies borrowed to start your business and don’t have the cash to do it, you may consider borrowing.

Again, if you have been in business for less than two years and have not established credit in your businesses name, then prospective lenders will review your personal credit worthiness and decide whether or not they will lend to you based on your personal credit history and personal credit score.
If you have not already done so, you should perform a “Credit Audit and Verification” on your personal credit file to ensure accuracy of your credit history as well as remove those inaccurate and negative items that you will find.   In fact, a study conducted by the PIRG (Public Information Research Group) out of Washington, D.C., revealed the following;

• 25% of credit reports surveyed contained serious errors that could result in the denial of credit, such as false delinquencies or accounts that did not belong to the consumer.
• 54% of credit reports surveyed contained personal demographic information that was misspelled, long out dated, belonged to a stranger, or was otherwise incorrect.
• Almost 8% of the credit reports were missing major credit, loan, mortgage, or other consumer accounts that demonstrate the credit worthiness of the consumer.
• Altogether, 79% of the credit reports surveyed contained either serious errors or other mistakes of some kind.

All of these items work to suppress your credit score and when it comes to applying for unsecured lines of credit, business credit cards, and other loans that will ensure your business survival, the higher your credit score, the lower the interest rate you will pay.  But even more importantly, it may stop you from actually obtaining that approval that would continue to allow your business to grow and ensure its long term success.

The latest statistics from the Small Business Administration (SBA) show that two-thirds of new employer establishments survive at least two years, and 44 percent survive at least four years.  In short, a significant percentage of new business start ups do fail.  Again, if you have not established business credit, how do you keep your business afloat and possibly sinking forever?

You need capital and in the beginning, that capital will be obtained by your personal credit history and your personal credit score.  Having insufficient operating funds is a common mistake for many a failed business venture.  Business owners underestimate how much money is needed and they are forced to close before they’ve had a fair chance to succeed.

For this reason, it is imperative to ascertain how much money your business will require to survive and you must take into consideration the fact that many businesses take, at the very least, a year or two to get going. This means you will need enough funds to cover all costs until sales can eventually pay for these costs.

To this end, the attorneys at the National Association for Credit Responsibility and Advocacy (NACRA) can help.   Through NACRA’s “Credit Audit and Verification” process, we have realized a legal means for addressing flawed consumer credit reports. The difference of having an experienced consumer law attorney working for you through this process is invaluable and will make all the difference in your life, your business, and your financial future moving forward.

Article Source: http://www.articlesbase.com/credit-articles/how-do-you-keep-your-business-afloat-if-you-are-undercapitalized-480829.html

About the Author

Luis O. Rodriguez is the Founder and President of the National Association for Credit Responsibility and Advocacy (NACRA), a consumer advocacy organization dedicated to helping consumers recover, rebuild, and then maintain their good credit and good name. He has been interviewed for many consumer articles and websites including Creditcards.com and CCHWallStreet.com.

You may contact him direct at lou@nacraonline.org