Understanding the Importance of Monitoring Your Credit

By Susan Carter

Looked at your personal or business credit lately? Can you say that everything on them is being reported accurately? A successful businessperson knows that it is vital to have the habit of checking their credit history.

Its very simple. When you need to obtain funds for your business through a line of credit (or loan), or when you want to apply to a new vendor, they are going to look at your credit record. If you have not made a committed effort to be sure that your information is being reported correctly, and you show up with negative items, than these lenders may not view you as being able to manage your debts well and may decide not to trust you with their money or their equipment. The best way to make sure this doesnt happen is to regularly check your credit reports and verify that everything is in good standing.

Here is what you should be watching for:

Items that should not be there. What do I mean by this? You want to be sure items aren't on your report that you previously cleared up and you dont want to see any item(s) that never should have been there at all. What if you have a negative (or derogatory) mark that showed up previously on your credit report? Youve spent a lot of time clearing it up and then it starts showing up again? Hopefully, youve kept the paperwork showing how you corrected this problem because without it, you would have to start all over again to fight this negative mark when it reappears. All credit reporting agencies are known to have a high rate of repeat errors, so why take the chance. There easily can be items on your report that are inaccurate. The sooner you notice them, the quicker you can get them deleted. Anything that should be there. If youve spent time building up a positive credit history by paying off loans and this has put you in good standings, then you surely want these good marks to appear on your record. Its so important that your credit history includes these on-time, paid debts because when lending institutions or vendors considering offering a business line of credit, theyre going to look carefully at your creditworthiness by evaluating the amount of current outstanding debt as well as previous paid off debt. Your true history is showing. Everyone knows that ID theft is running crazy these days and its not just individuals at risk. ID thieves can easily steal the financial data from your company and go on a shopping spree using your hard earned business credit history. By regularly verifying that the data listed on your credit reports belong to your business, you greatly reduce your risk. Be sure the entire credit history is showing - as well as the correct accounts. Don't be afraid to call on anything you find that looks suspicious. If you dont recognize something as belonging to your business, it is much safer to ask than to risk a bad situation from causing your business a problem.

About the Author:

You should monitor your credit report to be sure the information it contains about you and your business is accurate. Learn all you need to know about improving your creditworthiness as reflected by the various business credit bureaus.