A Low Credit Score Can Be A Barrier To Your Success

Yes, it is indeed true, most successful entrepreneurs have at one time or another run into credit destroying situations and while they overcome the obstacles, their credit reports remain blemished for many years after, and their credit score remains low. This be very expensive and a real barrier to greater success.

However, it’s a natural part of fighting the necessary battles and wars that small business owners must endure. Few business owners ever have adequate cash to support growth and development, to meet payroll demands every week, or to overcome difficult account receivable collections and sales and revenue peaks and valleys. Thus, they experience financial bumps in the road and are scarred with credit blemishes. Unfortunately, it is like the scarlet letter for most small businesses. When it comes time to purchase an expensive but needed piece of equipment, it is either impossible because of a low credit score, or much more expensive.

Borrowing from the bank is usually determined by the credit score, and thus many owners are left behind as the banks will not even consider an application without a score above 600. No SBA guaranteed loans, no credit at all is usually available to low score holders. This ends up forcing you into high interest private borrowing which is very expensive, if you can borrow at all. Of course, this carries into one’s personal needs and desires as well. Car loans and house mortgages are also significantly more expensive or unavailable because of the low credit scores the entrepreneur carries wherever they go. Even cell phone contracts require huge deposits for poor credit scores. It is a significant impediment to progress and success in both one’s business and personal life. I see it all the time. Even college loans for tuition are heavily affected by your credit score, with programs simply being unavailable to low score holders.

In short, we really have two categories of people and businesses, the ones that managed to succeed without credit issues, and thus have high credit scores and low cost credit and open doors for all sorts of business arrangements. Then, there are the ones who have blemished credit reports and thus pay enormously because of this in the form of additional high costs, higher interest rates and outright rejections, unable to purchase or do business at all. All because of a low credit score.

So what to do about this dilemma?

Credit rehabilitation, or, wait for seven to ten years and work it out over time. It is true that over a long, long time period, the bad credit scores can be converted into better scores as the blemishes are slowly removed from one’s record. With years of stellar payment history, scores improve over time. But even then it is frequently necessary to force the credit reporting agencies to remove the old issues after they were supposed to be withdrawn from your record. This is frequently a huge problem requiring special assistance.

An industry of credit rehabilitation experts has recently developed. Specialists who claim to have the skill to both counsel you on what maneuvers and adjustments in your own business and personal lives will enhance your credit score and assist you with specific procedures to have removed various entrees for a number of qualified and acceptable reasons. In the end, a poor credit score can, over a six-month time period, be elevated to a reasonable score or even a very good score, resolving this huge barrier. There is one problem, though. Unfortunately, this is a very difficult area to successfully navigate as far too many credit rehabilitation specialists have been taking  money and either doing nothing very productive or nothing at all, leaving their clients high and dry with a few less dollars but no better score. This is a significant issue in this developing new industry.

As one can well imagine, many of my clients have suffered the problem of low credit scores and thus the ensuing difficulties and I have experimented with many credit rehab people and businesses searching for a quality organization, capable of delivering the results: a higher score at a reasonable price. For a while I began to believe it would be easier to locate the holy grail. But alas, I have found the business organization that does the job, delivers the results and is reasonably priced. Hallelujah!!! So, if you are in need of such assistance, call me, and let’s discuss your needs, I may have just the solution you require.