Credit Score Protection: Navigating Entrepreneurship: Safeguarding Your Credit Score

1. Understanding Credit Scores

One of the most important aspects of running a successful business is maintaining a good credit score. A credit score is a numerical representation of your creditworthiness, or how likely you are to repay your debts on time. Your credit score can affect your ability to access financing, negotiate better terms with suppliers and vendors, and attract more customers and investors. Therefore, it is essential to understand how credit scores are calculated, what factors influence them, and how to protect them from potential threats.

There are different types of credit scores, but the most widely used one is the FICO score, which ranges from 300 to 850. The higher your score, the better your credit profile. The FICO score is based on five main categories of information from your credit report, which are:

1. Payment history (35%): This is the most influential factor in your credit score. It reflects how consistently you pay your bills on time. Late payments, missed payments, collections, and bankruptcies can negatively affect your payment history and lower your score.

2. Amounts owed (30%): This is the second most important factor in your credit score. It measures how much of your available credit you are using. The lower your credit utilization ratio, the better. A high credit utilization ratio indicates that you are overextended and may have trouble paying your debts.

3. length of credit history (15%): This factor considers how long you have been using credit. It takes into account the age of your oldest and newest accounts, and the average age of all your accounts. A longer credit history shows that you have more experience in managing credit and can positively impact your score.

4. Credit mix (10%): This factor evaluates the diversity of your credit portfolio. It looks at the types of credit accounts you have, such as credit cards, loans, mortgages, etc. A good credit mix shows that you can handle different kinds of credit and can boost your score.

5. New credit (10%): This factor examines how often you apply for new credit. It takes into account the number of hard inquiries on your credit report, which are triggered when you apply for credit and a lender checks your credit. Too many hard inquiries in a short period of time can lower your score, as it may indicate that you are desperate for credit or a credit risk.

For example, suppose you have a credit card with a $10,000 limit and a $2,000 balance, a car loan with a $20,000 balance, and a mortgage with a $200,000 balance. Your total credit limit is $230,000 and your total debt is $222,000. Your credit utilization ratio is 96.5%, which is very high. This can hurt your credit score, as it suggests that you are close to maxing out your credit. To improve your credit score, you should try to pay down your debt and lower your credit utilization ratio.

Your credit score is not static. It can change over time as your credit report is updated with new information. Therefore, it is important to monitor your credit report regularly and check your credit score periodically. You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year through www.annualcreditreport.com. You can also get your FICO score for free from various sources, such as your credit card issuer, bank, or online service.

By understanding your credit score and how it is calculated, you can take steps to improve it and protect it from potential threats. A good credit score can help you achieve your business goals and grow your venture. In the next section, we will discuss some of the common threats to your credit score and how to avoid them.

2. The Impact of Entrepreneurship on Your Credit Score

Entrepreneurship can be a rewarding and fulfilling career path, but it also comes with some risks and challenges. One of these challenges is how to protect your credit score while pursuing your business goals. Your credit score is a numerical representation of your creditworthiness, based on your credit history, payment behavior, debt level, and other factors. It can affect your ability to access financing, negotiate favorable terms, and save money on interest rates. Therefore, it is important to safeguard your credit score as an entrepreneur, especially if you plan to use your personal credit for business purposes. Here are some tips on how to do that:

1. Separate your personal and business finances. This is a basic but essential step to avoid mixing up your expenses and liabilities. By opening a separate business bank account and credit card, you can keep track of your business income and expenses, and avoid using your personal credit for business needs. This can also help you establish a business credit history, which can improve your chances of getting approved for business loans and grants in the future.

2. Monitor your credit reports and scores regularly. You should check your personal and business credit reports and scores at least once a year, or more frequently if you notice any changes or errors. You can get a free copy of your personal credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) every 12 months through www.annualcreditreport.com. You can also use online tools and services to access your business credit report and score from various sources, such as Dun & Bradstreet, Experian Business, and Equifax Business. By monitoring your credit reports and scores, you can spot any inaccuracies, fraud, or identity theft, and dispute them as soon as possible. You can also identify areas of improvement and take steps to boost your credit score.

3. Pay your bills on time and in full. This is the most important factor that affects your credit score, both personal and business. Paying your bills on time and in full shows that you are a responsible borrower and can manage your cash flow effectively. It also helps you avoid late fees, penalties, and interest charges, which can add up and hurt your bottom line. To ensure timely payments, you can set up automatic payments, reminders, or alerts, and budget accordingly. You should also avoid making minimum payments only, as this can increase your debt-to-income ratio and lower your credit score.

4. Use your credit wisely and sparingly. Another factor that impacts your credit score is your credit utilization, which is the percentage of your available credit that you are using. A high credit utilization can indicate that you are overextended and may have trouble repaying your debts. A low credit utilization can show that you are using your credit sparingly and prudently. Generally, it is recommended to keep your credit utilization below 30%, both for your personal and business credit. To do that, you can limit your credit card spending, pay off your balances as soon as possible, and request a credit limit increase if needed. You should also avoid applying for too many new credit accounts in a short period of time, as this can generate hard inquiries on your credit report and lower your credit score temporarily.

5. seek professional advice and assistance. If you are struggling with your credit score or debt management, you may benefit from seeking professional advice and assistance from a reputable credit counselor, financial planner, or accountant. They can help you review your financial situation, create a realistic budget and debt repayment plan, and negotiate with your creditors if necessary. They can also provide you with valuable tips and resources on how to improve your credit score and financial health as an entrepreneur.

3. Common Mistakes Entrepreneurs Make Regarding Credit

As an entrepreneur, you may face many challenges and opportunities that can affect your credit score. Your credit score is a numerical representation of your creditworthiness, which can influence your ability to access loans, mortgages, credit cards, and other financial products. A good credit score can help you secure better interest rates, terms, and conditions, while a poor credit score can limit your options and increase your costs. Therefore, it is important to protect your credit score and avoid some common mistakes that entrepreneurs make regarding credit. Here are some of them:

1. Mixing personal and business finances. One of the most common mistakes that entrepreneurs make is using their personal credit cards or bank accounts for business purposes, or vice versa. This can create confusion, increase the risk of fraud, and affect your personal credit score if your business faces financial difficulties. To avoid this, you should separate your personal and business finances and use different credit cards and bank accounts for each. This way, you can keep track of your expenses, income, and cash flow, and maintain a clear distinction between your personal and business credit profiles.

2. Overextending your credit. Another common mistake that entrepreneurs make is relying too much on credit to fund their business operations or growth. While credit can be a useful tool to bridge cash flow gaps, invest in new opportunities, or cover unexpected expenses, it can also be a double-edged sword. If you borrow more than you can afford to repay, or if you miss or make late payments, you can damage your credit score and incur high interest charges and fees. To avoid this, you should plan your budget carefully, monitor your credit utilization ratio (the percentage of your available credit that you use), and pay your bills on time and in full whenever possible.

3. Ignoring your credit reports. A third common mistake that entrepreneurs make is neglecting to check their credit reports regularly. Your credit reports contain information about your credit history, such as your accounts, balances, payments, inquiries, and any negative items. This information is used by credit bureaus to calculate your credit score, and by lenders and creditors to evaluate your creditworthiness. Therefore, it is important to review your credit reports at least once a year, or more frequently if you are applying for new credit, to ensure that they are accurate and up to date. If you find any errors or discrepancies, you should dispute them with the credit bureaus and the relevant parties as soon as possible. This can help you improve your credit score and avoid any potential issues or complications.

4. Failing to diversify your credit mix. A fourth common mistake that entrepreneurs make is having a limited or unbalanced credit mix. Your credit mix refers to the types of credit that you use, such as revolving credit (such as credit cards) and installment credit (such as loans). Having a diverse and balanced credit mix can show that you can handle different kinds of debt responsibly, and can boost your credit score. However, many entrepreneurs tend to rely heavily on one type of credit, such as credit cards, and neglect to use other types, such as loans or lines of credit. This can limit your credit options, increase your credit utilization ratio, and lower your credit score. To avoid this, you should consider using different types of credit for different purposes, and maintain a healthy balance between them. For example, you can use credit cards for short-term or recurring expenses, and loans or lines of credit for long-term or one-time investments.

5. Not building your business credit. A fifth common mistake that entrepreneurs make is failing to establish and build their business credit. Your business credit is separate from your personal credit, and reflects your business's creditworthiness and reputation. Having a good business credit can help you access more and better credit options for your business, such as trade credit, vendor financing, or business loans. It can also help you negotiate better terms and conditions, attract more customers and partners, and enhance your credibility and trustworthiness. However, many entrepreneurs do not have a business credit profile, or do not take steps to improve it. To avoid this, you should register your business as a legal entity, obtain a business identification number, open a business bank account and credit card, and apply for credit from vendors or lenders that report to business credit bureaus. You should also pay your business bills on time and in full, and monitor your business credit reports and scores regularly.

4. Building and Maintaining a Strong Credit Profile

As an entrepreneur, you may face many challenges and opportunities that can affect your credit score. Your credit score is a numerical representation of your creditworthiness, which reflects your ability to repay debts and access credit. A good credit score can help you secure loans, mortgages, credit cards, and other financial products at favorable terms. A poor credit score can limit your options and increase your costs. Therefore, it is important to protect your credit score and keep it as high as possible. Here are some tips on how to do that:

- 1. Monitor your credit reports regularly. Your credit reports are records of your credit history, which include information such as your personal details, accounts, balances, payments, inquiries, and public records. You can request a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once every 12 months through www.annualcreditreport.com. You should review your credit reports for accuracy and dispute any errors or fraudulent activity that you find. Errors or fraud can lower your credit score and damage your reputation.

- 2. Pay your bills on time and in full. Your payment history is the most influential factor in your credit score, accounting for about 35% of the calculation. Paying your bills on time and in full shows that you are responsible and reliable with your finances. Late or missed payments can hurt your credit score and incur fees and penalties. If you have trouble keeping track of your bills, you can set up automatic payments or reminders to avoid missing deadlines. You can also contact your creditors and negotiate a payment plan if you are experiencing financial hardship.

- 3. Keep your credit utilization low. Your credit utilization is the ratio of your total credit card balances to your total credit card limits, expressed as a percentage. It measures how much of your available credit you are using. Your credit utilization affects your credit score, accounting for about 30% of the calculation. A high credit utilization indicates that you are overextended and may have difficulty repaying your debts. A low credit utilization shows that you are managing your credit well and have plenty of room for new credit. A good rule of thumb is to keep your credit utilization below 30% on each card and across all cards.

- 4. Maintain a healthy mix of credit. Your credit mix is the diversity of your credit accounts, which can include revolving credit (such as credit cards) and installment credit (such as loans). Your credit mix affects your credit score, accounting for about 10% of the calculation. A healthy mix of credit shows that you can handle different types of credit and repayment terms. However, this does not mean that you should open new accounts just to improve your credit mix. You should only apply for credit that you need and can afford to repay.

- 5. Avoid closing old accounts or opening new ones frequently. Your credit age is the average length of time that you have had your credit accounts, which reflects your experience and stability with credit. Your credit age affects your credit score, accounting for about 15% of the calculation. A longer credit age can boost your credit score, as it shows that you have a long and positive credit history. Closing old accounts or opening new ones can lower your credit age and reduce your available credit, which can hurt your credit score. Therefore, you should keep your old accounts open and active, unless they have high fees or negative impacts. You should also avoid opening new accounts too often, as this can generate hard inquiries, which can lower your credit score and stay on your credit report for two years.

By following these tips, you can build and maintain a strong credit profile that can help you achieve your entrepreneurial goals. Remember that your credit score is not a static number, but a dynamic reflection of your financial behavior. Therefore, you should monitor your credit score regularly and take actions to improve it if needed. A good credit score can open many doors for you and your business, while a bad credit score can close them. Protect your credit score and make it work for you.

Want to raise capital for your startup?

FasterCapital increases your chances of getting responses from investors from 0.02% to 40% thanks to our warm introduction approach and AI system

Join us!

5. Monitoring Your Credit Regularly

One of the most important steps you can take to protect your credit score as an entrepreneur is to keep a close eye on your credit reports and scores from the three major credit bureaus: Equifax, Experian, and TransUnion. By monitoring your credit regularly, you can:

1. Detect and dispute any errors or fraudulent activities that may negatively affect your credit score. For example, if you notice an unauthorized inquiry or account on your credit report, you can contact the credit bureau and the creditor to have it removed as soon as possible.

2. Track your progress and identify areas for improvement. For example, if you see that your credit utilization ratio is too high, you can work on paying down your balances or requesting a credit limit increase to lower it.

3. Stay on top of your payment history and avoid late or missed payments that can hurt your credit score. For example, if you have trouble remembering your due dates, you can set up automatic payments or reminders to avoid any late fees or penalties.

4. Compare your credit scores across the three bureaus and understand the factors that influence them. For example, if you see a significant difference between your scores, you can check the credit reports for any discrepancies or errors that may explain the gap.

5. Take advantage of free or low-cost credit monitoring services that can alert you of any changes or updates on your credit reports and scores. For example, you can sign up for Credit Karma, Credit Sesame, or WalletHub to get access to your credit scores and reports from two or more bureaus, as well as personalized tips and recommendations to improve your credit health.

6. Strategies for Credit Score Improvement

As an entrepreneur, you may face many challenges and opportunities that can affect your credit score. Your credit score is a numerical representation of your creditworthiness, which lenders use to evaluate your ability to repay debts. A good credit score can help you secure loans, mortgages, credit cards, and other financial products at favorable terms. A bad credit score can limit your options and increase your costs. Therefore, it is important to protect and improve your credit score as you navigate the world of entrepreneurship. Here are some strategies that you can follow to achieve this goal:

1. Pay your bills on time and in full. This is the most basic and essential step to maintain and boost your credit score. Your payment history accounts for 35% of your credit score, according to FICO, the most widely used credit scoring model. Late or missed payments can hurt your score and stay on your credit report for up to seven years. To avoid this, you should set up automatic payments, reminders, or alerts to ensure that you pay your bills on time and in full every month. For example, if you have a credit card balance of $1,000 and a minimum payment of $25, you should pay the full $1,000 instead of just the minimum. This will not only improve your payment history, but also reduce your credit utilization ratio, which is another important factor for your credit score.

2. Keep your credit utilization ratio low. Your credit utilization ratio is the percentage of your available credit that you are using. It accounts for 30% of your credit score, according to FICO. A high credit utilization ratio indicates that you are relying too much on credit and may have trouble paying it back. A low credit utilization ratio shows that you are managing your credit responsibly and have enough financial cushion. Ideally, you should keep your credit utilization ratio below 30%, and lower is better. For example, if you have a total credit limit of $10,000 and a total balance of $2,000, your credit utilization ratio is 20%, which is good. However, if you have a total balance of $5,000, your credit utilization ratio is 50%, which is bad. To lower your credit utilization ratio, you can pay off your balances, request a credit limit increase, or open new credit accounts. However, you should be careful not to overextend yourself or apply for too many credit inquiries, as these can also hurt your credit score.

3. Monitor your credit report and dispute any errors. Your credit report is a record of your credit history, which includes your personal information, credit accounts, payment history, inquiries, and public records. Your credit score is based on the information in your credit report, so it is important to check it regularly and make sure it is accurate and complete. You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year through www.annualcreditreport.com. You should review your credit report for any errors, such as incorrect personal information, fraudulent accounts, duplicate entries, or outdated information. If you find any errors, you should dispute them with the credit bureau and the creditor as soon as possible. This can help you improve your credit score and protect your identity. For example, if you notice that your credit report shows a late payment that you actually paid on time, you should contact the credit bureau and the creditor and provide proof of your payment. This can help you remove the negative mark from your credit report and increase your credit score.

4. Diversify your credit mix. Your credit mix is the variety of credit types that you have, such as credit cards, loans, mortgages, etc. It accounts for 10% of your credit score, according to FICO. A diverse credit mix shows that you can handle different kinds of credit and debt obligations. A limited or homogeneous credit mix shows that you have less experience or exposure to credit. Therefore, it can help your credit score if you diversify your credit mix by adding different types of credit accounts, as long as you can afford them and manage them well. For example, if you only have credit cards, you may consider adding a personal loan, a car loan, or a mortgage to your credit portfolio. However, you should not open new credit accounts just for the sake of diversifying your credit mix, as this can also increase your credit inquiries and lower your average credit age, which are both negative factors for your credit score.

5. maintain a long and positive credit history. Your credit history is the length and quality of your credit relationships, which reflects your reliability and stability as a borrower. It accounts for 15% of your credit score, according to FICO. A long and positive credit history shows that you have a proven track record of paying your debts on time and in full. A short or negative credit history shows that you have less experience or problems with credit. Therefore, it can help your credit score if you maintain a long and positive credit history by keeping your oldest credit accounts open and active, and avoiding late or missed payments, defaults, collections, bankruptcies, or foreclosures. For example, if you have a credit card that you opened 10 years ago and have always paid on time and in full, you should keep using it and not close it, as it can boost your credit history and score. However, if you have a credit card that you opened recently and have missed several payments, you should pay it off and close it, as it can hurt your credit history and score.

7. Managing Debt Responsibly

As an entrepreneur, you may face various challenges and opportunities that require you to borrow money or use credit. However, taking on too much debt can negatively affect your credit score, which is a measure of your creditworthiness and financial health. A low credit score can make it harder for you to access financing, negotiate better terms, or even rent an office space. Therefore, it is important to manage your debt responsibly and avoid common pitfalls that can hurt your credit score. Here are some tips on how to do that:

- 1. Know your debt-to-income ratio. This is the percentage of your monthly income that goes towards paying your debt obligations, such as loans, credit cards, or mortgages. A high debt-to-income ratio can indicate that you are overburdened with debt and may have trouble making your payments on time. Ideally, you should aim to keep your debt-to-income ratio below 36%, which is considered a healthy level by most lenders. You can calculate your debt-to-income ratio by dividing your total monthly debt payments by your gross monthly income.

- 2. Pay your bills on time. Your payment history is the most influential factor in your credit score, accounting for 35% of the total. Missing or making late payments can have a significant impact on your credit score, as well as incur fees and penalties. To avoid this, you should always pay your bills on time and in full, or at least the minimum amount due. You can also set up automatic payments or reminders to ensure that you don't miss any deadlines.

- 3. Keep your credit utilization low. Your credit utilization is the percentage of your available credit that you are using at any given time. For example, if you have a credit card with a $10,000 limit and a $2,000 balance, your credit utilization is 20%. A high credit utilization can indicate that you are relying too much on credit and may have difficulty paying it back. It can also lower your credit score, as it accounts for 30% of the total. Ideally, you should aim to keep your credit utilization below 30%, which is considered a good level by most lenders. You can lower your credit utilization by paying off your balances, requesting a credit limit increase, or using multiple credit cards wisely.

- 4. Avoid applying for too many new credit accounts. Every time you apply for a new credit account, such as a loan or a credit card, the lender will perform a hard inquiry on your credit report, which can temporarily lower your credit score. Too many hard inquiries in a short period of time can indicate that you are desperate for credit and may have trouble managing your finances. It can also affect your credit score, as it accounts for 10% of the total. Therefore, you should only apply for new credit when you really need it and compare different offers to find the best one for your situation. You should also avoid opening multiple accounts at once, as this can lower your average account age, which is another factor in your credit score.

- 5. Monitor your credit report and score regularly. Your credit report and score are dynamic and can change over time based on your financial behavior and activity. By monitoring your credit report and score regularly, you can track your progress, identify any errors or discrepancies, and take action to improve your credit score. You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year through www.annualcreditreport.com. You can also use various online tools or services to check your credit score for free or for a fee. However, you should be aware that different sources may use different scoring models and criteria, so your score may vary slightly from one to another.

92 startups out of 100 raised capital with us

Be the next one! FasterCapital has a 92% success rate in helping startups get funded quickly and successfully!

Join us!

8. Credit Score Protection Measures

As an entrepreneur, you may face various challenges and risks that could affect your credit score. Your credit score is a numerical representation of your creditworthiness, which lenders use to evaluate your eligibility for loans, mortgages, credit cards, and other financial products. A good credit score can help you secure better interest rates, terms, and conditions, while a poor credit score can limit your options and increase your costs. Therefore, it is important to protect your credit score from potential threats and damages, especially when you are running your own business. Here are some measures that you can take to safeguard your credit score as an entrepreneur:

1. Monitor your credit report regularly. Your credit report contains information about your credit history, such as your payment behavior, credit utilization, account balances, and inquiries. You should check your credit report at least once a year to ensure that it is accurate and free of errors or fraud. You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) every 12 months through www.annualcreditreport.com. If you find any mistakes or suspicious activities on your credit report, you should dispute them as soon as possible to prevent them from hurting your credit score.

2. Pay your bills on time and in full. Your payment history is the most influential factor in your credit score calculation, accounting for 35% of your score. Paying your bills on time and in full shows that you are a responsible borrower and can manage your debt obligations well. On the other hand, missing or making late payments can negatively impact your credit score and incur fees and penalties. To avoid missing or making late payments, you can set up automatic payments, reminders, or alerts for your bills. You can also contact your creditors and request for a payment plan or a hardship program if you are facing financial difficulties due to the pandemic or other reasons.

3. Keep your credit utilization low. Your credit utilization is the ratio of your total credit card balances to your total credit card limits, and it affects 30% of your credit score. A high credit utilization indicates that you are relying too much on your credit cards and may have trouble paying them off. A low credit utilization shows that you are using your credit cards wisely and have plenty of available credit. A general rule of thumb is to keep your credit utilization below 30% on each card and across all cards. You can lower your credit utilization by paying off your balances, increasing your limits, or using other sources of funding for your business expenses.

4. Maintain a healthy mix of credit. Your credit mix is the diversity of your credit accounts, such as credit cards, loans, mortgages, and lines of credit. It accounts for 10% of your credit score. Having a healthy mix of credit shows that you can handle different types of credit and debt. However, this does not mean that you should open new accounts just to improve your credit mix. You should only apply for new credit when you need it and when you are confident that you can repay it. Each credit application generates a hard inquiry on your credit report, which can lower your credit score by a few points and stay on your report for two years.

5. Separate your personal and business finances. As an entrepreneur, you should keep your personal and business finances separate to avoid confusion and complications. You should have a separate bank account and credit card for your business transactions, and avoid using your personal credit card for your business expenses. This way, you can protect your personal credit score from being affected by your business performance, and vice versa. You can also benefit from tax deductions, accounting simplicity, and legal protection by separating your personal and business finances.

9. Long-Term Credit Health Goals

As an entrepreneur, you may face many challenges and opportunities that can affect your credit score. Your credit score is a numerical representation of your creditworthiness, which lenders use to evaluate your ability to repay debts. A good credit score can help you secure loans, mortgages, credit cards, and other financial products at favorable terms. A poor credit score can limit your options and increase your costs. Therefore, it is important to protect your credit score and maintain it at a healthy level.

One way to do that is to set and pursue long-term credit health goals. These are objectives that can help you improve your credit score over time and keep it stable. Some examples of long-term credit health goals are:

- Paying off your debts. Reducing your debt balances can lower your credit utilization ratio, which is the percentage of your available credit that you are using. A lower credit utilization ratio can boost your credit score, as it shows that you are not overburdened by debt. For example, if you have a credit card with a $10,000 limit and a $5,000 balance, your credit utilization ratio is 50%. If you pay off $2,000 of your balance, your credit utilization ratio drops to 30%, which can improve your credit score.

- Building a positive payment history. Making timely and consistent payments on your credit accounts can demonstrate your reliability and responsibility as a borrower. A positive payment history can account for up to 35% of your credit score, according to FICO, the most widely used credit scoring model. For example, if you have a car loan with a monthly payment of $300, paying it on time every month can help you build a positive payment history and increase your credit score.

- Diversifying your credit mix. Having a variety of credit types can show that you can handle different kinds of debt. A diverse credit mix can account for up to 10% of your credit score, according to FICO. Some examples of credit types are revolving credit (such as credit cards), installment credit (such as personal loans), and mortgage credit (such as home loans). For example, if you only have credit cards, adding a personal loan or a home loan can diversify your credit mix and enhance your credit score.

- Monitoring your credit reports. Checking your credit reports regularly can help you spot and correct any errors or inaccuracies that may negatively affect your credit score. You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year through www.annualcreditreport.com. For example, if you find a late payment that you actually paid on time, you can dispute it with the credit bureau and have it removed from your credit report, which can improve your credit score.

By setting and pursuing these long-term credit health goals, you can protect your credit score and navigate entrepreneurship with confidence and ease. Remember, your credit score is not a static number, but a dynamic reflection of your financial behavior. You can always improve it with good habits and smart decisions.

I often say to entrepreneurs, 'If Lehman Brothers were Lehman Brothers & Sisters, it wouldn't have gone into bankruptcy.'

Shinzo Abe