Stage Two of the Business Credit Success Guide
How to Build Small Business Credit with No Personal Guarantee

Step 3 ~ Business Credit vs. Bad Credit

The availability of business credit is a privilege, not an easy escape from bad personal credit.  There are two different types of bad credit, one can be aided by building small business credit and the other will hinder you and your business until it is rectified.  Whatever your situation right now, if you continue to follow the steps laid out in this guide you will soon have great personal credit and a thick business credit file which will provide your small business the best possible chance to obtain large amounts of unsecured financing with no personal guarantee.

The first type of bad credit is simply called being “over-extended” which we will discuss in detail in an upcoming step.  The good news is that by starting the process to build small business credit you will soon have access to the funds necessary to run your business with business credit, rather than personal credit.

The second type of bad credit involves having derogatory items  (collections, late payments, tax liens, bankruptcies, etc.) showing on your personal credit files.  This will hinder your small business until they are ALL removed or changed to report positively.  The reality is that your small business will be able to access unsecured financing quicker, easier and in larger amounts if you are able to personally guarantee.  It can even speed up the process of building business credit by qualifying for higher tier financing sources that will provide your business credit file with a high reporting tradeline. Don’t worry if you are confused, we will fully explain this later in the guide.  There are ways around this such as bringing in a partner to provide the personal guarantee but the catch is that business credit issuers will want a personal guarantee from all business owners with at least 20% ownership rights.  Unless you are willing to give up the majority of your company to access large amounts of unsecured financing it is time to start doing something about your bad credit now.
Fix Your Personal Credit

There is a lot of information out there about credit repair so we want to provide the variety of options available along with our honest opinion so please research each and choose the option that best fits your situation.

• Do-it-Yourself ~ Whenever possible we will provide you with a do-it-yourself option and the Credit Repair Software website provides visitors enough information, resources and how-to guides to allow you to successfully repair your own bad credit.

• I would like some help ~ You can spend hours researching and you will find hundreds of companies that advertise they can repair your bad credit.  In reality, they are all doing the same exact thing you can do yourself but the only difference is they are getting paid to send the right letters at the right time. If you don’t want the hassle of keeping track of timing and schedules it might be in your best interest to hire one of these services.  Our members have used eCreditRepair with fantastic success, if anything take advantage of their Complimentary Credit Analysis Consultation by filling out the simple online form..

We recommend to our members they use a service as long as they first understand two points, it won’t happen overnight and don’t expect the world.  Whether or not you do-it-yourself, you will likely not see any results for 3-6 months and often longer.  What you need to focus on is would it be worth $100 or $200 to get at least one bad credit item removed or changed.  This one item could mean a 20-40 point increase in your credit score, which could be enough for you to qualify for a better interest rate and save thousand in interest payments.

Monitor Your Personal Credit

Whether or not you need to repair your credit it is essential to regularly monitor your credit.  We highly recommend the True Credit services as they are one of the only companies that offer daily updates so you can always see the exact state of your credit files online in real-time. This is an invaluable tool to protect yourself from identity theft by immediately detecting unauthorized inquiries or account activity before it’s too late.

3-Bureau Credit Monitoring includes unlimited 3-in-1 Credit Reports & Scores from all three credit bureaus: TransUnion, Equifax and Experian. Get unlimited Access to Your Credit Report. Sign up today!