With more than 30 million people in the United States with bad credit scores (under 620), and thanks to the country's economic situation, it's making getting a credit card or loan with fair terms difficult. Smaller buisiness entrepreneurs first must face their real credit score, then consider accounts receivable factoring to repair bad credit.
There are more than 30 million people in the United States with bad credit scores. Bad scores are those under 620. Thanks to the country's economic situation, it's making getting a credit card or loan with fair terms very difficult.
For those smaller business entrepreneurs, in order to help fix the problem, you need to first face your real credit score. Despite free credit report offers, you still have to pay to find out your score, which is a three-digit number ranging from 300 to 850.
Here's how: Go to MyFico.com, or you can get Experian's "consumer education" credit report. Following you will find some credit repair tips:
1) Try to use your credit cards less often if not sparingly. Totaling up big balances can hurt your score, regardless of whether you pay your bill in full each month and on time.
Do NOT hire a credit repair service. "Don't believe these claims," says the Federal Trade Commission (FTC): they're very likely signs of a scam. The attorneys at the nation's consumer protection agency say that they've never seen a legitimate credit repair operation making those claims."
3) The fact is there's no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, effort, and sticking to a personal debt repayment plan.
4) What is reported to the credit bureaus and calculated into your score is the balance reported on your last statement.
5) Try to pay down or pay off credit cards. The credit-scoring system is based on favorability towards a gap between the amount of credit you're using and the available credit limits.
6) It is a good idea to rotate your credit cards. The older your credit history per card, the better it is, so if you stop using a card, the issuers may stop updating the account at the credit bureaus, and it won't be given as much weight in the credit-scoring formula as active accounts.
7) Make sure to keep tabs on your credit limits. Charging the same amount each month -- say $500 to $800 -- makes the credit-scoring formula think you are you're regularly maxing out the card. Simply pay your balance down or off before your statement period ends.
8) Accounts receivable factoring is an age old tactic that could help you pay off credit your card debt. Single invoice factoring provides immediate cash flow.
Factoring is regaining popularity as a surefire method of financing to improve the cash flow of a business. And in case you still do not understand it -- factoring is when a company decides to discount its accounts receivables, at which time the factor then bears the credit risk for the accounts and becomes the recipient of payment from the customer. Factoring is one of the most effective and efficient forms of financing, or funding a small business with cash flow today.
Invoice Factoring is Highly Efficient for Small Business
Today, many small businesses are being forced to cut expenses and manage their cash flow better. However, many small businesses, including the construction industry, can get by if they implement new billing and cash flow procedures like accounts receivable factoring.
Small Business Growth and Profits Using Single Invoice Factoring
One major challenge facing almost any small business owner today is how to maintain and control positive cash flow. One of the least understood options for increasing cash flow is factoring, a great way to invest in and grow your business.
The History of the Age Old Practice of Factoring
Factoring has been around for more than 4000 years, since the beginning of trade and commerce. Accounts receivable factoring is also one of the most misunderstood financial tools available to small businesses today. In the U.S. factoring is becomming a popular method of financing, helping to improve the cash flow for businesses, especially in today's economy.
