How To Improve Your Credit To Get Business Loans Approved
by Ty Hicks

Your credit and business loans are linked together. So if you want to get loans easier its smart to improve your credit. How can you improve your credit, no matter what your current credit score is? Take these steps:

1. Get a copy of your credit report. As of September 1, 2005, you are entitled to one free credit report from each of the credit reporting bureaus each year. Call, write, or e-mail each of the three bureaus, asking for your credit report. The three bureaus are:

•  Equifax - 1-800-685-1111 - www.equifax.com
•  Experian - 1-800-397-3742 - www.experian.com
•  TransUnion - 1-800-916-8800 - www.transunion.com

2. Compare each credit report. you may find that some of the credit reports have inaccurate information about you. If this is so, immediately write the credit bureau. Explain the error(s) and have corrections made. Send your corrections by Certified Mail with Return Receipt Requested. Then there will be no doubt about the credit bureau receiving your corrections. You'll also note that the total score on each report may vary from the other reports. Why? Becuase each bureau uses a somewhat different scoring method. This can change your total score overall with some business loans.

3. Pick out items on your credit report where you can improve. This will raise your score. Here are some common ways to improve your credit score:

•   If you have "Slow Pays" on your report, immediately start paying your bills ahead of time. A few months of paying ahead of time will help raise your credit score with most credit bureaus.
•   If there are any "Unpaid Accounts" on your credit report arrange to repay them, in full.
•   Where a negative item is accurate but was caused by something beyond your control - such as illness, death in the family, earthquake, etc. Write the credit bureau a letter explaining why you had no control over the item.
•   Try to raise your credit score (called FICO after the firm that started it) to at least 650. Why? Becuase then you can get alomost any regular loan you need! The lowest score is 300; the highest 850. So 650 is good.