| By :
Marco Carbajo
Raising credit scores for both you and your business can allow you to have much more cash credit and resources available at better interest rates and terms. In the business world, a strong FICO credit score rating is necessary during the early stages of business financing especially if your business credit files are not strong enough. Due to the current economy and credit markets, banks and lenders are looking at both personal FICO scores and business credit scores. Now keep in mind that if your business credit report can stand on its own they may not require a personal guarantee but can still check your credit scores as part of their underwriting process. I suggest to clients in my business credit practice to consider programs that prove to increase a FICO credit score rating in as little as 60 days, which you and I know is pretty fast. I'm sure you'll agree that there are quite a few services out there that promise to raise credit scores so its important to understand the overall concept of what these programs offer. So how does it work? First you will need to decide what amount of credit you are wanting to add to your personal credit files. Remember the greater the credit line the bigger the impact it will have on dropping your debt to credit limit ratios. Currently the unsecured line of credit options in the marketplace usually range from $5k, $6k, $7,500 and $10k. Next step is simply submitting an application and making a small advance purchase based on the amount of credit you want. For example, if you select a $5k line of credit then you will need to purchase a couple of hundred dollars worth of products. What I really like about using these types of programs is that from your advance purchase you get to select from thousands of dollars of merchandise items on their websites depending on what company you apply for a credit line with. So for simply purchasing their products you are automatically receiving a $5k unsecured line of credit that reports to your personal credit report with two of the major consumer credit reporting agencies. Now that's what I call a solid offer for raising credit scores! Imagine if a store like Best Buy offered its customers a $5k line of credit if they made an initial purchase of let's say $300 at its store. I know it sounds far-fetched but I'm just trying to make a point. Once approved you can continue to use these types of lines of credit towards the purchase of other products or services these companies may offer and it's important that you do so you can continue to build positive payment history. You can apply for this line of credit usually online but if you want a greater amount then you will need to fax or email a full credit report first. By taking advantage of credit score programs and optimizing your scores with the credit rating bureaus the benefits for you on a personal and business level can be very rewarding. Your credit report and scores have the power to lower interest rates, give you better terms on loans and put more money back in your pockets.
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