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Starting Credit Scores from Scratch

A talk by Ruben Bruce

About the Talk

September 2, 2015 12:00 PM

After graduating from college, you might be thinking that everything would now be easier since you can now earn for your own whereas when you are still studying that you have to know your parents’ mood before asking for money. Sorry to disappoint you but the real world has become complicated than ever you might want to go back to your parents’ support than deal with all the mature stuff.

According to Axis Capital Business Funding, a credit loan source for small business owners across the United States, a lot of young entrepreneurs are struggling to keep pace with all the complexities of being in the business. Only those who were trained since young and those who have amazing abilities manage to keep pace but it is also not a good assurance of a good credit score.

It would be harder if you are in a developing city which have not yet completely adapted to having credit score but you must. It is already an accepted trend in Singapore, Jakarta, Indonesia, Tokyo, Japan and Seoul South Korea so you must start now.

Here are some basic steps:

  1. Acquire a Credit Card

The average Americans normally have a credit card. Since somebody needs to track your credit loan, a credit card would be the best way to organize it. Having a credit card can also increase your credit score a big deal. Besides, if everyone is doing it, why not do as well?

  1. Pay Your Bills

When you are loaning for your business, the best way to get it is to present a good score. If you have debts which remain unpaid, it can show that you are not a good payer. Review all your bills, credit history and make sure you pay on time. Your debts can be shown in a fluctuating credit score.

  1. Minimize Your Debt

While you have a credit card, don’t charge everything in it. The lower your credit balance is relative to your limit, the better your credit score would be.

  1. Check Your Score Every Now and Then

The only way to know if you're on the right track to great credit is to regularly review your progress. Getting your credit reports and credit scores can also help you spot signs of fraud or identity theft, which can really screw up your credit, especially if someone abuses your identity or accounts for a long time.

  1. Be Patient

For every credit score to update it would take a month or two since the system has to sync the corresponding data to all your accounts. There is no point in filing a complaint against a credit provider when you have only paid your debts last week. Focus on maintaining your clean report and it will eventually show.

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