Let's Talk About Finances: Personal Credit

Now that I have your attention with the #Tacos, let’s talk about working on your personal credit…

Working on your personal credit can play a factor in things that you may seek approval for while starting your business. Making sure that you understand where you are personally can only benefit you professionally as you continue becoming financially fit. One of the first places I started monitoring my score (FOR FREE) was with Discover Card at https://www.discover.com/free-credit-score/. This is a free option that has given me a more accurate idea of what I needed to start working on and what has been working for me. You can also check your report each year for free at www.AnnualCreditReport.com.

Another option that I know personally has worked is Self, Inc. They have options for you to make 1 or 2-year payments towards a CD account held at Lead Bank that you can later transfer to a secured credit card. This will report to the credit bureaus almost immediately and start giving you positive credit history. You will need to have a bank account or debit card that they can take the money off of each month, so make sure you have a steady

income and can afford to do this. Here is a link to get you started – Self Inc. You will also be able to track your credit score with them as well.

If you are also working on creating a good mixture of creditworthiness(or even establishing new credit), I would always check with your bank to see what secured card options or programs they may offer that can help you if you don’t feel you will qualify for an unsecured card. Many cards also offer credit monitoring as an included feature, but your score can also show up differently with each system so keep that in mind when you see the variances in your scores. In addition to the above options, when I started a DiscoverIt Secured card, I also noticed an increase in personal credit AND they eventually sent back my deposit back when they switched me over to an unsecured card. https://www.discover.com/credit-cards/secured/

All of these have helped me personally raise my score by more than 150 points and obtain additional lines of credit. It will be important to utilize or start some type of system that will help you get organized and disciplined. Budgeting will play a huge factor after being disciplined. Being patient will make up the rest. This goes for both business and personal. Most companies want to know that when you are extended credit, you will pay it back. Keep it a rule to not charge/spend money that you can’t afford to pay off within that same month (if possible). Keep your total credit utilization between 10-30% and pay EVERYTHING on time.

Also, once you start establishing a healthier relationship with money & credit, DON’T START APPLYING FOR EVERYTHING! Having too many inquiries and hard pulls on your credit will also hurt you. Be very methodical and intentional on where and when you ask for money that you will have to pay back.

This is not a sponsored post.