Having a good credit history plays an important role in the success of business because it is a crucial factor in being approved for certain business activities. “The credit report tells you everything. It is a picture of your life,” described Annabel Soto, “Credit is king and if you don’t have good credit you will be jumping through fire, but you can fix blemishes on your credit and it’s about the commitment you give.”

A credit report determines the ability to obtain goods or services before the payment. As Annabel Soto explained and went over all the different types of credit: (1) Long-term (2) Short-term (3) Secured and (4) Unsecured, Annabel Soto stated how the best type of credit to have on your report is long-term credit and that it is important to make sure that the lender reports to the credit bureaus so that credit can be established. Doing your research and homework is crucial when it comes to credit and how to build it. Annabel Soto then went on to explain what a credit report shows; it shows (1) personal information (2) negative information (3) payment history (4) Inquiries. When you look at your credit and if there are inaccuracies then it is important to repair it, but remember to keep up-to-date and accurate information cannot be removed.

Before applying it is of essence to answer some questions, such as the following: (1) Do you really need credit? (2) If so, what kind of credit do you need? (3) Where will you get the credit from? (4) Will you be able to repay it? (5) How much is too much? “Massage your credit; bring up your score by charging on your credit card and paying it off in full when the date of payment comes and keep repeating the process,” Annabel discloses. Is it important to pay off your bills, manage them, and keep in track because failure to do so will result in obtaining more interest and fees, which will make the process of paying off debt a much longer process.

What are some ways to maintaining good credit? As Annabel Soto mentioned, “Pay bills on time and do not use more than 30 percent of your credit card limits, limit excessive credit inquiries, and or new accounts.” Always keeping a log of whom you called, when you called, and what your conversation was are important details for the book keeping of your credit. It is a game and you must know the rules and the right strategies to play successfully. “You have to realize what your income is and if you can pay it off. Live within your means,” described Annabel Soto. Therefore, it is helpful to obtain a copy of your report from all the three major credit bureaus, which are: EQUIFAX, Experian, Transunion because all three bureaus information will vary. Credit score is not free, thus Annabel Soto provided the following website and number to check your credit: www.annualcreditreport.com and 1-877-322-8228. The factors that are included in your FICO Credit Score are: Amounts owed (30%), Types of credit (10%), New credit (10%), Credit history (15%) and Payment history (35%). “Your personal credit is the foundation of your business credit and you have to know what your budget is at home. Do you know what’s coming in and going out of your home? If you don’t, how will you determine it for your business? This is where the bulb goes on and it all starts from here,” Annabel Soto stated.

LAEDA hosts numerous seminars on a wide range of topics. Our next seminar, 10 Steps to Perfect Your Website, Social, and Email is scheduled for Thursday, January 26, 2017 at 6:00 PM at LAEDA's Offices (433 Market St, Camden, NJ). Click here to join our mailing list to learn about all of our upcoming seminars and events.