Member Articles

When I first decided to work from home, the biggest attraction was that I would call the shots. I would be my own boss, I would make all of the major decisions and that was that. And for the most part that has been true; however, like any small business owner, there comes a time when you are ready for your business to grow. For me that meant more capital in the bank that would allow me to explore bigger ventures. Since I didn’t have the “more capital” that was needed, I knew that I would either need to find a partner, find investors, or take out a business loan. None of this was a problem for me but I was quite surprised to find that most of the people I dealt with wanted to comb through my credit. And with a fine-tooth comb to boot!

I did not have any problems getting what I needed, but I was reminded just how important your credit history is to other people. I knew that lenders look at it closely when they are considering lending you money for large purchases, but clients, prospective employers, and would be business partners do, too. That one experience has lead me to encourage my younger sister and cousins to take care of their credit from the beginning so that their options are not limited when they need their credit most. Being turned down for your dream job because you did not pay your bills in college would be devastating indeed.

Understanding your credit score and how it affects your ability to move freely throughout the financial realm is important. Your credit score is an indicator to prospective employers, clients and lenders of just how willing you are to make good on what you say you are going to do. Many will look at your credit score to get a feel for your maturity level and your ability to make long term plans.

Twenty-first century business dealings involve a lot more than the good reference and firm handshake of fifty years ago. So how in these strict financial times do you set yourself up to impress upon others that you are a good financial risk? First you must create a credit history. Creating a credit history is simple and the first step in the right direction.

1.) Open a checking and savings account. A long-standing checking account is an indicator to lenders and clients that you have an account from which you can pay your bills. In addition, savings accounts are an indicator that you are a long-range planner and are willing to save towards your future endeavors. In addition to the aforementioned, having these accounts put you on the financial world’s “grid.”