Should you use Business Credit or Personal Credit for your small business?

If you're starting a small business, you must decide whether to use personal or business credit. This is a significant decision that will have an impact on the viability of your small business. In this article, we'll look at the facts about both options so you can make the best decision for your business.

What is Personal Credit?

Personal credit or individual credit is a form of personal finance that refers to the ability of individuals to borrow money for short or long-term purposes. Personal credit is used by consumers for many purposes, including financing a new car or home, paying for medical expenses, or buying groceries. Personal credit can be extended by banks, retailers, and other financial institutions.

Personal credit is also known as an extension of credit, which is an agreement between two parties where one party extends money to another party in exchange for collateral that has value. The collateral can be anything of value, such as real estate, stocks, or bonds. The lender charges interest on the amount borrowed and if the borrower defaults on their payments the lender can repossess the collateral they gave up to secure the loan.

What is Business Credit?

A company's financial strength is measured by its business credit. A company can pay its bills and make payments on time. It could also be used to fund future operations and growth in some cases. Generally, business credit is a tool that allows you to expand your business. With good business credit, you can borrow money, buy inventory, invest in new equipment, or expand your operations.

Personal Credit vs Business Credit – Which should you use in your Business?

Pros of Using Personal Credit for your Business: If you're just getting started and don't have enough income or assets to qualify for business credit, using your credit card is a quick way to establish some history with the three major credit reporting bureaus — Experian, TransUnion, and Equifax — which will help them determine whether you're a good risk for future loans or lines of credit.

Using your card makes sense if you only need a few hundred dollars in inventory or supplies for your first few months in business. If you start with small purchases now, you'll have an easier time qualifying for better cards later — as long as you pay your bills on time every month. This is critical because late payments can have the greatest impact on your credit score of any factor!

A personal credit card can also be used for other things besides funding your business. You might use it as a backup in case your business goes under and you need money to live on while you look for another job. Or you may also use it as an emergency fund in case something unexpected happens with your business that requires an immediate influx of cash.

• Cons of Using Personal credit for your business:

Let’s talk about why using a personal credit card for your business might also not be such a great idea after all:

One thing about personal credit is a low spending limit. That is why it is important to use business credit to spend money for your business. This ensures that you'll have enough room to cover the expense in case there's an emergency or if something goes wrong with the payment system. If you don't have enough spending power, then it might not be possible for you to pay for all of the expenses at once.

There are also tax implications associated with using personal cards for business expenses. If you use one of these cards for personal expenses and then fail to report those purchases on your taxes, you could face some serious penalties from the IRS.

When using your card for business purposes, there's a chance that some fraudulent activity could occur if someone were able to get hold of your card number and PIN code. This can cause trouble for both yourself and your company as well as damage its reputation and image. A good way to prevent this from happening is by having several cards issued specifically for company use only so that each one has different numbers and PINs associated

• Pros of Using Business Credit:

Businesses should use business credit cards as often as possible because these cards offer many perks that personal credit cards do not offer at all or only partially offer (such as rewards programs). For example, some rewards programs give points back per dollar spent on travel expenses or even fuel purchases; others offer reward points that can be redeemed for cash back or even free flights or hotel stays. These types of rewards programs are not available on personal credit cards at all and can help save you a lot of money.

A business credit card can improve cash flow and help you manage expenses more efficiently. That may seem like an obvious benefit for any small business owner. But it’s especially true if your company is just starting out or if it doesn’t have enough cash flow to cover its expenses each month.

• Cons of Using a Business Credit:

The worst part about using a business credit card is that you will end up paying more in interest than you would have if you had used your credit card, which can severely reduce your profit margins if you are not careful.

If you want to help finance your business, you must pay off all of your bills on time each month to avoid incurring interest or late fees. This ensures that your money goes further into helping your company grow rather than paying off debt every month.

Another significant disadvantage of using a business credit card is the lack of flexibility in comparison to other types of financing available to small businesses today, such as factoring companies or invoice discounting services.

Can you put personal expenses on business credit cards?

There are some restrictions on using business credit cards to pay for personal expenses.

• The first requirement is that you have a business and have your company name on the card.

• The second requirement is that you be able to demonstrate a clear separation of personal and business expenses.

• Also, you'll need to keep meticulous records of how much you spent on each.

The problem with incorporating too much of your personal life into your professional life is that it can lead to confusion and make managing your finances more difficult. It may make it difficult for the credit card company to distinguish between business and personal purchases, leaving you liable for all charges.

To get the most out of your business credit card, use it exclusively for business purposes whenever possible.

4 Questions to ask yourself before taking a Student loan

Student loans can be a quick way to fund a college degree but they also come with many strings attached. According to Forbes, there are more than 44 million student loan borrowers in America with over $1.75 trillion in student debt. This is $28,750 on average per borrower. 

Student loans have been called one of America's biggest financial scams by Forbes. This makes them a very controversial subject, whether students know it or not! I've put together a list of tips that you must consider before you take up student loans.

1. Do you need student loans?

The answer to this question depends on your situation. If you're lucky enough to have a family that can help you cover the cost of college, then perhaps you can avoid student loans altogether. However, for many people, it's not so easy.

If you're planning on going to college and don't have a way to pay for it yourself, then yes, you need student loans. Student loans are the only way that most people can afford to go to college these days.

However, you should know that the cost of college is rising at a much faster rate than inflation. The cost of attending college has been increasing at a rate three times faster than the increase in median family income. This has made it more difficult for students and their parents to pay for college without taking out student loans.

Student loans help you pay for college and reduce the cost of higher education for everyone and give you more options when choosing your school. However, more students who graduate from college with student loans are struggling to repay these loans because they don't have much money, to begin with. 

1. How much do you really need to borrow?

The answer to this question is not an easy one because many factors can affect how much you will need to borrow for student loans. These include your education, your field of study, and how many years you plan to attend school.

The first thing you want to do is determine how much it costs for you to attend school. You can do this by looking at the cost of tuition and fees as well as any other expenses associated with attending college such as books, transportation, or housing costs. Once you have calculated all of these costs, add them up and divide them by four (or five if you plan on living on campus). This will give you an idea of how much money per month you will need while in school.

Next, look at what type of degree program you are going into and what kind of job opportunities it may lead to after graduation. If your degree requires a lot of time in school and doesn’t offer good job prospects upon graduation, then it may be better for you to pursue a different degree program that has better employment opportunities after graduation.

However, you must make sure you are not borrowing far more than may ever pay after graduation.

1. Are there other options to pay for your education?

Student loans are not the only way to pay for higher education. There are alternatives to taking out loans.

• Scholarships and grants

Financial aid can take many forms but one of the most common is scholarships and grants. These are free money given by schools or organizations that want to encourage students to pursue certain careers or academic fields. Scholarships can be merit-based (based on grades or test scores) or need-based (based on how much money your family earns). To apply for financial aid, fill out the Free Application for Federal Student Aid (FAFSA), which covers federal loans and grants as well as private scholarships.

• Work-study programs

A work-study program allows students to earn money by working part-time on campus during the school year and full-time in the summer. Some schools require all students to participate in work-study, while others offer it as an option for those who have trouble affording books, housing, and other expenses. Work-study wages vary from $10 per hour up to $12 per hour depending on your location and field of study.

1. Understand the terms of the loan.

The term of a student loan is the length of time you are required to repay your loan. There are two main types of student loans: federal and private. Federal loans are funded by the government, and private loans are funded by banks or other financial institutions.

Federal Student Loans

The term of a federal student loan varies based on the type of loan. For example, subsidized loans have a fixed interest rate for the entire life of the loan. That means that you will never be charged more than what your interest rate is set at when you borrow it. Unsubsidized loans also have a fixed interest rate for the life of the loan, but this type does not include any benefits like grant money or work-study earnings to help cover the cost of college.

Private Student Loans

The term for private student loans is much shorter than other types of education-related loans because they don’t offer any benefits such as deferment or forbearance options if something goes wrong with your finances during repayments like unemployment or disability. Private lenders often charge higher rates because they typically aren’t backed by the government like federal student loans are.

The interest rate on a student loan varies depending on the type of loan and when it is taken out. Different interest rates apply to federal direct loans, private loans, Perkins Loans, Federal Family Education Loans (FFEL), and Alternative Loans. The Department of Education publishes more student loan information here.

If you take out a student loan without knowing what you are getting into, you may end up paying more than you should and may not even graduate from college.

Conclusion:

Student loans can be a great investment in your future. They give you the chance to earn a degree or professional certificate and build a better life for yourself and your family. But they also come with risks, including the possibility of having to pay back more than you borrowed.

Here are some tips we covered:

• Check if you need the student loans.

• Be sure you are getting the amount you need.

• Look for other options which you can utilize to further your education.

• Understand the terms of the loan before you borrow.

Why Your Debt and Bad Credit will affect your Chances of Obtaining a Military Security Clearance?...and What you Can Do About it

Do you want to protect and serve? And get paid for it? But what about your finances? Do you have a lot of debt? Bills to pay off? If so, then how will that affect your chances of obtaining a security clearance for working for the Army, Navy, Marine Corps, or Air Force? We'll dive into this together.

What are the military's position on debt and bad credit?

First of all, the military doesn't want people who are irresponsible, who are frivolous with their money, or who make bad decisions because your financial position says a lot about you.  The National Security Adjudicative Guidelines layout a total of 13 criteria used to determine whether someone can receive a security clearance. One of those guidelines is called "financial considerations," which includes "failure to live within one's means." This is probably the most pertinent guideline for someone who has debt or bad credit because it's where these things are taken into account.

If you are looking for a job in the military, your credit score will not be considered during the initial application process. Once you get the position, however, you may need to undergo a security clearance check. If this happens, your credit score will be one of several factors considered as part of your background check.

In the past, bad credit or a high debt-to-income ratio could be a serious obstacle to obtaining a security clearance. However, the US government has changed its stance on this issue and now has a much more forgiving attitude toward people with money problems.

In fact, in the last few years, the military and DoD have recognized that financial problems can be caused by outside factors – such as job loss or divorce – and are willing to look at the circumstances behind your debt and credit issues when making their clearance decision.

Back In 2016, the Defense Department identified as many as 30% of service members who were security risks because of financial problems. It is also good news for those hoping to get into the military; being rejected for clearance because of financial issues has been a barrier to getting jobs in the armed services.

Even though the military's current stance on debt and bad credit is more flexible than it used to be, it doesn't mean there aren't some guidelines to follow if you want your application for security clearance to be approved without delay. Before getting a security clearance, you will need to explain what happened and why they shouldn't worry that it will affect your performance on the job. A good explanation might be that you went through a period of unemployment or had high medical bills following a serious illness. Being in debt is not illegal but the government may view your debt as a sign that you could be vulnerable to coercion or manipulation. This is especially true if you have bad credit, large amounts of debt, and an unstable financial situation.

How to improve your chances of obtaining a military security clearance?

If you do want to try and get into the military but have bad credit, here are a few things that you can do to help improve your chances:

• Fix any errors on your credit report.

Your credit report is a detailed record of your financial transactions. It contains information on current and previous loans, payments, payment history, and credit inquiries. The report also includes any judgments or liens filed against you, any bankruptcies you may have filed, and any accounts sent to collections. When determining whether or not you qualify for a security clearance, the United States Department of Defense (DoD) will review your credit report.

If you intend to join the military as an officer or an enlisted member, or if you want to obtain a security clearance for a military job, you should review your credit report before proceeding.

• Gather documentation for all financial hardships and mitigation attempts.

Get your documents ready. These include: Credit reports, statements from creditors, proof of payment plans with creditors- The military wants to see that debt was not only paid but also paid on time, letters of explanation, and proof of hardship (for example, medical bills or divorce paperwork). If it was out of your control (such as illness or injury), make sure you have documentation showing that as well.

Provide the investigating officer with a letter stating what happened, why it happened, and what steps you have taken since then to become financially responsible. Always be honest in your letter, because anything untruthful will be found during the investigation process.

• Focus on repairing your bad credit:

You will need to focus on credit repair if you want to get a security clearance into the military with bad credit. In general, you can join the military if your credit score is at least 600. If your score is less than 600, contact a local recruiter who can assist you in contacting the Department of Defense (DoD). Once you've joined the military, you'll want to work on repairing your credit. The Department of Defense, as well as many other government services, provides a variety of options for repairing your credit while serving.

• Make all of your payments on time

This is one of the most important steps you can take to improve your credit score. Paying bills late not only hurt your credit score but also creates other problems like late fees and penalties.

Summary

No Credit Score is Too Low!

While the U.S. military doesn't require applicants to have good credit — no minimum score is published — it still looks at your credit history when you apply for admission to any branch. The military may reject enlistment if you're unable to pay bills on time and meet other financial obligations. Military recruiters use your credit score as an indicator that you can be trusted with sensitive information and materials. The Department of Defense will also consider your payment history and other factors when determining whether to admit recruits. A high debt-to-income ratio and multiple derogatory marks on your credit report can result in rejection for security clearance into the armed forces. If you need help to get a security clearance but have bad credit and a ton of debt, comment below!

3 Money Mistakes Couples Must Avoid Before Divorce

The most important factor to discuss prior to divorce is not what happens during divorce, but what happens before divorce. What I am referring to, of course, is money. Money mistakes can be costly for both parties involved in a divorce. Even if you have a good asset portfolio and/or have built a great credit score, divorce can destroy your financial future if you haven't taken the necessary steps to protect your cash, real estate, and retirement assets. This article discusses three crucial money mistakes that couples must avoid before divorce...

Before you even consider calling a lawyer and filing divorce papers, you must first get your finances in order. While it may be tempting to rush through this process in order to put the financial aspects of divorce behind you as soon as possible, you must take your time.

Making errors now may cost you thousands of dollars later. The National Endowment for Financial Education (NEFE) conducted a survey of divorced Americans and discovered that the majority of them regretted how they handled their financial affairs during the divorce. Half of those polled said they wished they had been more financially prepared before divorcing. Furthermore, a whopping 70% said they wished they knew what to expect from their post-divorce finances.

Here are three commonly made money mistakes that couples contemplating divorce must avoid:

1. Not obtaining a copy of your credit report and fixing any errors on it before using it as a basis for settlement negotiations.

Your credit score is a key part of what you bring to a relationship, even if you don't have any joint obligations during your marriage. If you plan to buy real estate, take out a loan or get new credit cards after your divorce, lenders will consider your credit history alone (meaning not your spouse's). It's important to review your credit reports and correct any errors on them before agreeing to a settlement that might be based on inaccurate information.

You'll never get a fair settlement if you don't know where your partner’s money is, how much debt they have, or how much you may be entitled to. However, you can obtain free copies of your partners' credit reports from AnnualCreditReport.com. If you notice any errors on your spouse's report, make sure to have them corrected before using the report as a negotiating tool.

1. Not considering the tax consequences of any proposed financial settlement agreements before they're signed.

One of the most overlooked aspects of divorce is how it will impact your taxes in the future. Some people mistakenly believe that once they get divorced they no longer need to file taxes jointly. However, this is not true if they were married on December 31st of the tax year.

Another common error I see is that people do not fully comprehend the tax implications of their financial settlement agreements before signing them. They are concerned with how much alimony and child support they will receive or pay, without considering the tax implications of these payments. Alimony, for example, is taxable income if you receive it as part of a settlement agreement. Alimony payments made as part of this settlement agreement are tax deductible. The same holds true for child support: Payments received are not taxable income, nor are payments made tax deductible.

Further complicating this situation is that many taxpayers do not realize that for years 2018 through 2025 — due to a provision in the Tax Cuts and Jobs Act — alimony payments made under separation agreements entered into after Dec. 31, 2018 will no longer be tax deductible for the payer, nor will these payments be considered taxable income for the recipient.

Therefore, make sure you consider the tax consequences of any proposed financial agreements before they're signed.

One of the most overlooked aspects of divorce is how it will impact your taxes in the future. Some people mistakenly believe that once they get divorced they no longer need to file taxes jointly. However, this is not true if they were married on December 31st of the tax year.

1. Keeping secrets from your lawyer.

It is crucial to be open and honest with your attorney. In fact, you should disclose everything that could affect your divorce case.

You should never lie to your lawyer, but even if you don't come right out and make stuff up, there are things you may think are insignificant details that could make a huge difference in how much money you walk away with post-divorce. For example, let's say your spouse was the one who always handled the finances, so you have no idea what kind of retirement accounts are involved. If your spouse has a secret 401(k) or IRA account with $100,000 stashed in it — and you don't tell your attorney about it — that's 100 grand he/she can't fight for on your behalf.

An experienced family law attorney should be able to provide an estimate of your potential legal fees and other costs. You'll save money by keeping the lines of communication open with your lawyer and not surprising them with new information at the last minute.

1. Not closing joint accounts right away.

If you have joint credit cards or bank accounts with your spouse — and let's be honest, most couples do — the first thing you need to do is close them and open separate accounts in your own name. If there's a balance on a credit card, pay it off and close the account. If there's money in a joint account, take out half of it and leave the other half for your spouse.

You can't just start withdrawing money without their permission. Even if you're divorced, you're still legally responsible for any debt you incur together. The same is true for loans such as mortgages or car loans: you will both be responsible for paying the loan until it is paid off or refinanced in each person's name separately.

Also, note that I am not saying you should just close all the joint accounts immediately. There are potential credit score ramifications of doing this, and many times you will need money to pay lawyers and other related fees. Your best bet is to leave all accounts open until the divorce decree is finalized and the division of assets is complete.

You shouldn’t let the divorce from your partner put you in a financial trouble in the future. Also, avoid creating more problems for your-self by hiring a pro who can properly handle situations like yours.

5 Amazingly Easy Ways to Rebuild Your Credit after Bankruptcy

If you've recently declared bankruptcy, you're probably wondering how to rebuild your credit. Yes, just because you've declared bankruptcy does not mean your credit life is over. There is life after bankruptcy, and it can be better than the life that brought you to bankruptcy. You just need to focus and start over with your credit history, which is easier than you think with these five amazingly simple ways to rebuild your credit after bankruptcy.

What happens after you declare Bankruptcy?

When you declare bankruptcy, it's most likely your stress levels will become sky-high. I mean, you will like to go through financial turmoil and may even have to handle a slew of other legal complications. However, your credit score is a major part of your financial life. It can impact getting loans and mortgages, along with other routine things like your ability to rent an apartment or get utilities set up in your name in the future. That's why it's important to know what happens to your credit once you've officially gone through bankruptcy — and more importantly, how you can rebuild your credit after bankruptcy.

Exactly how long does it take to rebuild your credit after bankruptcy? Will your life be better after filing Chapter 7 or 13 and having a trustee handle all of the details? When you file, can you drive a car right away? Can you file again if this doesn't fix your credit score? These and more are some of the questions that you may be thinking about — but only time will tell. 

The truth is Bankruptcy affects the population differently, although the popular opinion is that your credit history will be ruined due to the bankruptcy on your record. And it may be true for some people. The good news is that even though bankruptcy stays on your credit report for seven to 10 years, the damage it does to your credit score doesn't last nearly that long. With the right approach during and after the filing procedure, there's no reason why you shouldn't be able to rebuild your credit.

How to Rebuild your Credit after Bankruptcy?

Fear of credit is the single most common mistake people make after filing for bankruptcy. With a new beginning, you have the opportunity to do things correctly this time. And doing things correctly means regaining good credit.

There are a few key steps you can take to rebuild your credit after bankruptcy. Here's what you should do:

1. Review the Mistakes that led you to Bankruptcy:

What you don't understand can't be fixed. Examine what caused your financial problems so you can avoid making the same mistakes in the future. You'll be able to rebuild your credit faster because you won't have to deal with the same mistakes over and over.

If your bankruptcy was due to bad luck or an emergency, perhaps you lost your job or got divorced and couldn't pay off all of your debt. consider yourself fortunate — you probably won't have to change your entire lifestyle to get back on track. However, if you racked up debt on frivolous spending, ignore bills, or didn't have an emergency fund, you'll need to make some changes.

Whatever the reason for your financial difficulties, learn from them and commit not to make the same mistakes again.

1. Monitor your credit reports for errors:

Another thing to do after filing for bankruptcy is to go over your credit reports. The reason for this is that mistakes do occur and information is incorrectly entered into reports at times. You should review all of your credit reports for errors at least once a year. AnnualCreditReport.com offers a free annual copy of each of your reports. Examine your report for any inaccurate data or errors, such as incorrect account status, late payments, or misreported balances. If you discover any of these issues, notify the reporting bureau immediately because they may harm your score.

It is critical to be especially vigilant in checking your credit reports regularly because creditors may attempt to take advantage of the situation by opening new accounts or leaving inaccurate information on old accounts.

1. Get a secured card:

Secured cards are intended for people with bad or no credit history, and they are frequently used to help people rebuild their credit. They function in the same way as any other credit card: You charge against available funds and pay them off each month until you've demonstrated responsible credit use over months or years.

As long as you pay on time and manage the account responsibly, your payments will be reported to the major consumer reporting agencies, which will help rebuild your credit score over time.

Also, when selecting a secured card, ensure that it is issued by a major bank or card issuer (Visa or MasterCard) so that it can be used anywhere a regular card is accepted. Look for cards that report your payments to all three major credit bureaus as well. The best-secured cards, like regular cards, may offer rewards such as cashback or frequent flyer miles.

1. Do not take High-Interest Loan Offers:

Many companies offer loans and credit cards with high-interest rates for people with bad credit. Try to avoid these offers — if you already have bad credit, these offers will not help improve it any faster and could cause further damage if you're unable to pay off the debt in time.

Because of your bankruptcy history, these lenders may claim that they are doing you a favor by giving you a loan. Don't fall for that ruse. Because you won't be able to file for bankruptcy for several years, you're an appealing risk to many lenders. That's why they're coming to you with offers.

However, don't be afraid to take out a small loan. If you need to take out a loan immediately following your bankruptcy, try to keep the amount small. As long as you're able to pay off this debt and maintain good payment history, this will help build up your credit score again and show lenders that you're responsible with money. 

1. Make a Financial Plan:

After filing for bankruptcy, the first thing you should do is create a financial plan that includes steps to rebuild your credit. Budgeting, on-time bill payments, and debt reduction are all components of that strategy. Steps to obtain financing after the bankruptcy is discharged should also be included in the plan, such as applying for a secured credit card. A secured credit card requires you to put down a deposit equal to the card's credit limit. For example, if you want a $200 secured card, you must deposit $200 into the issuing bank's account. You will have access to your deposit as long as you pay off the balance each month when the card is due to expire. If you do not pay off at least a portion of your balance each month and fall behind on your payments, the bank will have access to your deposit to cover any unpaid balance on your account.

Conclusion

Rebuilding credit after bankruptcy can be difficult, but it's not impossible. Many people who go through the process have come out with better financial footing than before. Do you have any questions about rebuilding your credit after bankruptcy? Let us know in the comments section below!

6 Tips to Help You Get Started Right In Your Credit Repair Business Today

6 Tips to Help You Get Started Right In Your Credit Repair Business Today

It's never been easier to get professional credit repair than it is now. Having a Credit Repair Business is no longer the nightmare it once was thanks to the Internet. Only wealthy merchants could operate a credit repair firm in the past, so they could avoid commission sales and pass the savings on to their customers. With part-time or full-time hours, you can now start building a highly profitable credit repair business.

Here are six tips to help you get your credit repair business off to a good start so you can focus on serving your clients rather than struggling with the basics.

What is a Credit repair business?

A credit repair company assists individuals in removing unfavorable information from their credit reports. These negative elements may be unreliable and erroneous, but they can lower their credit score. A low credit score has an impact on people's capacity to get loans and the interest rates they will pay.

The credit repair industry is a fast-paced and profitable one, but you'll need to know the ins and outs of credit restoration to get started. You'll also need to know everything there is to know about credit repair, debt relief, credit counseling, and any other services you offer or plan to offer. You must have a thorough awareness of the tools and resources available to you, as well as how the laws function and how your clients can profit from the services you provide.

6 Tips to Help You Get Started Right In Your Credit Repair Business Today

If you are trying to start your own credit repair business, below are 6 tips to help you get started right today:

Credit repair businesses are regulated by laws:

Credit repair businesses are governed by legislation. The Credit Repair Organizations Act (CROA) was enacted to protect consumers from deceptive credit repair practices, and the law specifies exactly what a credit repair company can and cannot do. The CROA forbids credit repair companies from engaging in a variety of activities, including:

Before providing any services, fees must be charged; Falsifying their services (for example, claiming to have special relationships with creditors that allow them to remove accurate information from a person's credit report); Failure to provide clients with written copies of contracts, or failure to provide clients with information on how to cancel contracts within three business days of signing them; Failure to provide a written statement describing the client's legal rights under the CROA; Ignoring requests from clients for documents they signed or documents related to the services they are receiving.

State laws may also regulate how credit repair companies operate in your state and what services they can offer you, so it is important to check with your state Attorney General's office as well.

You need to Understand the Business and industry thoroughly:

Most people overlook this, but it is critical that you thoroughly understand the business and industry before starting a business. You must understand where this industry came from, the challenges it faced, where it is now, and where it is headed in the future. You must understand what makes this niche profitable because doing so will help you become a better business owner. You must know how to send out dispute letters, read credit reports, save money for your clients, understand the 3 major credit bureaus, and set up banking and merchant accounts.

Importantly, you must be aware of all federal and state laws governing credit repair. You will also need to become acquainted with the rules of bureaus, creditors, and collection agencies. You must understand all of the credit bureaus' methods for calculating credit scores. You must be aware of these things because many people are unaware of such laws and, as a result, they can be easily exploited by someone with little knowledge of these laws.

Find a successful person in the same field and research what they did right. It will be difficult for you to make any mistakes if you study those who have succeeded before you. To be successful in the credit repair business, you must first understand it.

You must register your Credit Repair Business the right way:

You must properly register your Credit Repair Business. If you reside in the United States, you must register at both the state and federal levels. You may also be required to register with your local government. You should be able to find out what is required for registration by visiting SBA.gov or the website of your Secretary of State.

Check to see if your company name is available:

When you're ready, register your Credit Repair Business entity with the Secretary of State in the state where you'll be doing business. The procedure varies by state, but in general, you'll need to file an Articles of Organization (limited liability Company), an Articles of Incorporation (corporation), a Certificate of Incorporation (corporation), or even a DBA (doing business as). Filing these papers establishes a legal business entity, indicating that you are solely responsible for all tax obligations. It also offers legal defense against liability and lawsuits.

Also, You can always register your company as a sole proprietorship using your social security number. However, it is preferable to form a corporation or an LLC so that you do not lose all of your assets if you are sued. Also, ensure that you establish merchant accounts with a merchant account company that allows credit repair businesses to transact with them. It is important to note that there are numerous companies online where you can open a merchant account and begin collecting payments from your customers right away.

You Must Be Prepared For Negative Reviews:

If you are a business owner, you will have to deal with negative reviews. No matter how hard you try, there will always be someone who isn't satisfied with your product or service. There are ways to handle these situations that can turn the negative review into a positive experience for everyone involved.

The first thing you need to do is make sure that there is no way that the person who left the review can be identified. This could lead to legal issues if the person turns out to be a disgruntled employee or someone looking for personal damages. Your next step will be to respond appropriately.

When responding to negative reviews keep it professional and make sure that you are addressing the issues at hand. You should also include your contact information so that the reviewer can contact you directly if they wish to discuss their experience further. If there's something specific in the review that they can address, offer suggestions on how they could improve their experience.

If you have multiple negative reviews, try contacting each reviewer individually and ask them for their reasons behind leaving a negative review. It's important to stay calm when dealing with this type of situation because your goal is not only to make the situation better but also to avoid future occurrences of negative reviews about your company.

You must be aware of various resources that can maximize your productivity and profitability:

To make the most of your credit repair business, you must be aware of the various resources that can increase your productivity and profitability.

Customer Relationship Management Software.

To manage leads and customers, every business requires CRM (customer relationship management) software. CRMs also enable you to automate follow-up campaigns and send marketing materials to clients and prospects. There are several good ones on the market at various price points, but I would recommend starting with something simple website and social media page until your business grows, then upgrading later.

Account for Merchant Services.

You'll need a merchant account to accept credit cards from your customers- right in the comfort of your home e or office, by phone, or via an automated payment system on your website. Credit card processing rates for businesses are currently around 2-3 percent per transaction.

Attorney.

Every credit repair professional should have a good attorney on retainer who specializes in consumer protection laws. This will protect both you and your clients from any potential legal issues that may arise when dealing with the three major credit bureaus and/or creditors from time to time.

Do Not Expect To Get Rich Quickly.

If you want to get rich quickly and easily by starting your own credit repair business, you will be disappointed. You must be patient and understand that good thing take time. For example, if you tried to start a business selling a product that people only bought once every five years, it would take those five years to buy from you again. It would take ten years for half of those who bought from you to buy from you again. The same logic applies to starting your own credit repair business. It does not occur overnight.

Be patient and pay attention to details. You need to make sure that everything is done properly and completely before sending any information out about your clients or going ahead with any kind of legal action. One wrong move could cause all kinds of problems for you and your client in the future, which is why you should always look over everything before doing anything else with it.

I know getting started can be intimidating, especially for someone without financial or credit experience (although neither is strictly necessary), that is why I want you to email me at info@lusenedonzo.com let's talk more about making your business a highly profitable venture.

5 Common Mistakes Students Make with their Credit Cards

1. Not having a Credit Card.

You may believe that avoiding the pitfalls of credit cards entails not having any at all, but this is a mistake. Many students make the first mistake of not having a credit card at all. It's important to understand that the term "credit" has two different meanings. It refers to your ability to borrow money, which is determined by how much you already owe (i.e., your debt), and it also refers to your reputation for repaying what you've borrowed (i.e., your history).

If you don't have either of these things— If you don't have either of these things—that is, no history of borrowing and repaying money—banks will be hesitant to let you borrow more because they can't verify that you know how to do this responsibly without getting into trouble. This means that unless you have a cosigner willing to vouch for your financial responsibility, you will not be able to obtain the benefit of credit.

2. Choosing the Wrong Card.

Another mistake students make with credit cards is selecting the incorrect one. Students are frequently enticed by credit cards that offer rewards or other benefits that do not correspond to their spending habits. If you're like most college students, your spending will be concentrated in three areas: textbooks, food, and entertainment. As a result, the best student credit cards are those that provide a high percentage of cash back in these categories while also being forgiving of late payments.

If you carry a balance from month to month, you'll want a low-interest student credit card (Annual Percentage Rate). The annual percentage rate (APR) is the interest rate that is applied to your balance if you do not pay off the entire amount due by the end of each billing cycle.

There are dozens of student credit cards available. Some may be better than others, depending on your situation and preferences. Research the different options and look for low fees, low interest rates, rewards that suit your needs, and other factors. If you have any questions or concerns consult with a qualified professional to help guide you in the right direction

3. Not setting a budget.

Credit cards are supposed to help people manage their finances, but some students use them without thinking. If you are one of these students, it is critical that you understand the benefits and drawbacks of credit cards.

You will not be approved for a card if you have bad credit unless you have a good payment history. That means you should create a budget before applying for any grants or loans. By putting money aside each month, you'll ensure that when the time comes to apply for a card, you'll have enough to cover the fees and other costs associated with opening an account.

Even if you don't have bad credit, you should still create a budget because it will help ensure that your expenses don't spiral out of control when an emergency or major life event occurs that necessitates financial commitment.

4. Not paying your balance in full.

The minimum payment on a credit card is the balance due after the monthly interest charges have been applied to the statement. If you do not pay at least the minimum amount due, you will be charged additional interest, which will raise the total cost of using your credit card in the future.

You may have heard this before, but it's worth repeating: If you're using a student loan to pay off other debt, make sure you pay the minimum payment each month even if the remaining balance is zero. Doing so will keep the amount outstanding on your account low and will help your score at the expense of the overall amount you owe.

5. Closing a credit card you no longer use.

If you're trying to build up your credit score, keep any unused credit cards open and active. This will help improve your average account age and credit utilization ratio. If you want to free up some space in your wallet, consider cutting up the card instead of closing the account. closing a credit card can actually be detrimental to your credit score. If you opened the account and then began using it responsibly, you’re building up a history of good credit with that particular card. Closing the card means that history is no longer factored into your available credit and could actually decrease your score.

If you’re worried about how a specific credit card is affecting your credit utilization rate, consider transferring some or all of the balance to another account or paying it off completely instead of closing the account.

It’s important to note that having a long history of good credit is something lenders like to see when you apply for loans or lines of credit in the future.

Use the advice provided above to avoid common mistakes students make with credit cards!

5 Signs a Credit Repair Specialist is a Scam

Simply calling or clicking a link online to a credit counseling or credit repair company should put you one step closer to putting your financial problems behind you. But be cautious. I've been in the credit repair business for a long time. And I've seen it time and time again. The truth is that many credit repair services make promises they are unable to keep. Alternatively, what they are doing for you may be working against your chances of repairing your credit.

This may sound strange and possibly unbelievable, but it is the case for the majority of credit repair companies, and you must be aware of these 5 warning signs before hiring or paying any credit repair service for assistance.

5 Signs a Credit Repair Specialist is a Scam.

1. They claim to be able to improve your credit score by 100 points or more in 30 days or less.

According to the Federal Trade Commission (FTC), this is a clear red flag. If a company promises quick results, there's a good chance it's a scam and won't deliver, or it'll charge you exorbitant fees for services you can do yourself for free. It's highly unlikely that they could raise your score by so much in such a short period. Even if it were possible, it would be prohibited by the Credit Repair Organizations Act (CROA), which states that no company can guarantee results for their customers.

The truth is that there is no way to instantly raise your credit score by 100 points or more. The only way this could happen is if your scores were artificially low due to something like a reporting error. Raising scores by that much in that amount of time would be impossible otherwise. Even if the company corrects a mistake on your report, it will not have an immediate impact on your scores unless the incorrect data was significantly lowering them.

2. They promise to remove accurate negative information.

Not only is this unethical, but it's also illegal. Accurate negative information cannot be removed, no matter how much you pay for credit repair services. This means if you have legitimate late payments or unpaid debts on your report and the credit repair specialist promises to remove them, they are simply lying to you from the get-go. There's no way around it — accurate negative information must stay on your report for seven years (insolvencies such as bankruptcies are required to remain on reports for 10 years).

If you have accurate negative information on your report, it will not be removed. The only exception to this rule is if there is an error. For example, if you are being reported for late payment when you were on time, then it may be possible to dispute the item. If a company is making this kind of promise, it's a scam.

3. They want you to pay upfront.

It's not uncommon for a company to demand payment in advance for services rendered. It is, however, illegal for a credit repair company to demand payment before any services are rendered. According to the law, you must see results before paying any fees. Be wary of any company that demands payment in advance.

Credit repair companies are not allowed to charge you until they have completed service, according to the Credit Repair Organizations Act (CROA).

A legitimate credit repair specialist should never request payment in advance, and if they do, it indicates that they don't know what they're doing.

4. They claim to be able to create a new credit identity for you.

Some credit repair companies will try to persuade you that they can create a new identity for you from the ground up, but this is nearly impossible. The only way to do it would be to create a completely new identity — which is rarely possible because most people will have their information on file with the major credit bureaus by the time you need it. They claim that they can provide you with a new Social Security number, which many states will allow in certain circumstances, but this is still an illegal method of avoiding the fact that your name is on file with the federal government.

They claim to be able to get you on the radar of banks so that they will not report you're bad debt to them, as well as have charges removed from your accounts such as late fees or over-the-limit fees. That is a Scam right there!

5. Their contract is hard to understand. A reputable company will give you a clear and specific contract that details exactly what they will do for you, what it will cost, and how long it will take. Any company that dodges the question or tries to muddle the issue should be avoided.

Companies that advertise free consultations but end up charging hidden fees violate the federal Credit Repair Organizations Act (CROA) and should be avoided at all costs.

How to know a Credit repair agency is reliable?

Credit repair is a thriving industry. If your credit score has suffered as a result of late payment, bankruptcy, or other factors, some companies can assist you in restoring it. And, while this may seem like a good idea before you hire someone to work on your credit, do some research to ensure the company has a good reputation in the industry.

Here are some questions to consider:

· Is the firm/specialist experienced? Credit repair companies usually have a well-established staff; if they don't have any experience, they won't be able to help you improve your credit score and may even harm it.

· Are they genuine? Credit repair companies are not regulated by any government agency, so their legitimacy cannot be established. If you're going to hire someone from the internet, you should know who you're hiring.

· Can I speak with previous clients? If a company is dependable, it will usually have some online testimonials about its work. If there isn't a track record of success with credit repair companies online, don't hire them.

Always check with your state's attorney general's office, the Federal Trade Commission, and local consumer organizations such as the Better Business Bureau to see if there have been any complaints.

How to Quickly Build Good Credit from Scratch without Adversely Impacting your Score in the Process?

Good credit is something most people strive for, but it can be difficult to obtain. Bad credit can be a deal-breaker when it comes to obtaining a loan or a mortgage, as well as higher interest rates and credit card charges. There is no quick way to improve your credit. However, if you want to improve your credit score quickly without adversely affecting your score, the tips below may be useful.

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Why Do You Need Good Credit?

Good credit is something you can’t take for granted. Most people who have good credit don't think twice about it. But in the eyes of the lenders, it says something about your financial habits and responsibilities. Opening a new credit card account, applying for a mortgage, or buying a car all require a credit check to determine your ability to repay those loans. If you have less-than-stellar credit, you might not be able to get an auto loan or mortgage or even qualify for a credit card. The good news is that it is possible to build good credit from scratch without adversely impacting your score.

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How to Get Good Credit

1) Get a Secured Credit Card.

If you don't have a credit history and want to start one, a secured credit card is the simplest way to do so. These cards are backed by funds you deposit with the issuer as collateral for your credit line. For example, if you put down $500, the issuer may grant you a $500 credit limit. When you use the card, the issuer deducts the charges from your deposit (as long as your balance does not exceed the limit). At that point, you have the option of paying off any remaining balance or allowing it to carry over with interest until the following month. The use of your deposit prevents issuers from taking on too much risk, which is why they're willing to accept it.

The goal of a secured card is to build your credit enough to qualify for an unsecured card, which does not require a deposit and offers better benefits. Select a secured card with a low annual fee that reports payment information to all three credit bureaus, Equifax, Experian, and TransUnion. NerdWallet regularly reviews and ranks the best-secured credit card options.

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2. Find a Good Co-Signer.

One of the most effective strategies for improving your credit score is positive payment history. Your credit score is determined, in part, by how well you pay your bills as agreed. If you don't have a history of making on-time payments, one way to start building a positive payment history quickly is to get a co-signer on a loan or credit card.

A co-signer promises to pay the balance if you default on the loan or the credit card. As long as you keep up with your payments, the co-signed loan or credit card will help build your credit history and improve your score over time.

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3. Get Credit for the Bills You Pay.

Making your payments on time month after month is an important way to build your credit score. It accounts for 35 percent of your score. If you're new to credit, getting a starter credit card is the best way to start building a payment history.

Experian Boost™ is another way to help build your credit scores. You can add positive information, like utility and cell phone bills, to your Experian credit reports. These bills can help show that you are a consistently responsible billpayer and may help improve your credit scores.

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4. Practice Good Credit Habits.

When you are first starting, there are some simple steps you can take to ensure that you build credit quickly and start on the right path:

 Set up your accounts carefully. If you're getting a credit card, try to get one in your name only. That will make it easier to keep track of the account and any activity. And if you have a joint card with a spouse, track it carefully to make sure no unauthorized charges appear that could affect your score.

 Pay bills on time. As noted above, payment history is the most important factor in your credit score. If you get into the habit of paying bills on time from the start, you'll avoid late fees and penalties, and you'll be setting yourself up for long-term success.

 Use sparingly, but use regularly. The ideal way to use a credit card is to charge small amounts — for example, gas or groceries — and then pay it off at the end of each month when the bill arrives. It's convenient, it's easy to monitor and it helps develop positive payment history while keeping balances low.

 Check your reports regularly. Three different major credit reporting agencies compile information about consumers' use of credit — Experian®, Equifax®, and TransUnion®. All consumers

Credit Repair Service: Don't Even Think About getting a Credit Repair Until You read this.

The credit repair industry has grown rapidly in the last decade, but it has not always been a smooth ride. Many credit repair companies and "specialists" have snuck into this field with ill intentions. That is why you must understand how credit repair works, the various services available, and several other topics before deciding on a course of action to repair your credit. These are the most critical things you should keep in mind as you evaluate your options. Take your time to read this!

WHY CREDIT REPAIR IS NECESSARY?

The majority of people are unaware of the significance of their credit score. Many of them believe that their credit will never be repaired and have given up on their dream of owning a home or a car. However, with the right assistance and guidance, you can quickly raise your credit score in just 3-4 months.

Credit Repair is a method of repairing a poor credit history or cleaning up an inaccurate or out-of-date credit report. It is an excellent option if you have a low FICO score. It is useful if methods such as debt repayment, non-payment methods, and promotions, no longer appear to be effective. Credit repair can help you improve your credit and save money.

Can you Fix Your Credit on Your Own?

Many people are unaware that repairing your credit on your own is a viable option. They believe that hiring a credit repair service is their only option for improving their FICO score or other credit rating number. Many reputable agencies will tell you that you can repair your credit and will advise you to conduct your research. The major thing an agency can do for you that you can't do for yourself points you in the direction of some advanced resources.

Techniques such as disputing false reports, debt validation, pay-for-delete services, and goodwill letters can be used to remove negative information. All of these strategies are used by credit repair companies to remove negative information from your credit report- and you can do them with a little research. Also, you can save money by doing it yourself. It also empowers and gives you control over your credit history.

You can download your credit reports for free once every twelve months; review those reports for errors and submit your disputes online or through physical mail, making sure to provide documentation that proves your case.

Credit Repair May Not Impact Your Credit Score

Unfortunately, credit repair is about removing inaccurate information, not rewriting your credit history or debt settlement. Your credit score is only one of the factors that contribute to your FICO score, which is widely regarded as the most important credit score. This number is used by lenders to determine whether you will be able to make payments on time, and it also determines the interest rate on your loans. It's straightforward. If your credit score is low, no one will lend you money to help you get ahead. Your credit score is determined by five factors: your payment history, the total amount of your debt, the length of time you've been borrowing, the types of credit accounts you have, and recent credit applications you've made. Credit repair does not give you a way of removing negative information that’s accurate and verifiable. You should note that credit repair isn’t guaranteed to raise your credit score. But there’s a good chance it could if negative, inaccurate information is deleted from your report.

Credit Repair Is Not a Quick Fix

There is no 100% guaranteed, fast and quick credit repair. Credit scores do not improve overnight, and identifying and disputing errors on your credit reports takes time. When you have requested and challenged your credit reports from all three credit bureaus: Experian, Equifax, and TransUnion. There will be an investigation, and if it is determined that the information should be removed, the process will take longer. It may take even longer for your credit reports to be updated, and then even longer for your credit scores to be impacted. So, you must be patient.

How to know a Credit repair scammer

People are wary of credit repair companies – and credit repair in general – because the industry has a reputation for scams. Scammers thrive on people's desperation. The more worried you are about a situation, the easier it is to persuade you to make a hasty decision. Scams involving credit repair are not uncommon. Millions of victims have already been duped by credit repair companies that use various illegal tactics to profit from their clients. However, the Consumer Financial Protection Bureau recommends keeping an eye out for the following warning signs:

a. You are pressed to pay in advance.

b. You are requested to you dispute accurate information.

c. The company does not explain your legal rights.

How to Repair Your Credit

There are several methods for repairing your credit. Which path you take is determined by:

i. Your budget – that is, how much money you can afford to spend

ii. Your self-assurance in resolving disputes on your own

iii. The number of negative items you wish to contest

The more items you wish to dispute, the higher your credit score may arise. If you have a large number of items to dispute, it may be worthwhile to pay for a professional credit repair service. In the long run, the money you save by securing lower interest rates with a better credit score may justify a small upfront investment.

In conclusion, those are a few things to look out for when repairing bad credit. This process can be difficult if you don't know where to look, or who to ask. That's why I'm willing to share my secrets with you.

You can click here to get started.

8 Steps to Finding Your Ultimate Self

It's time to start living your life. You can't be the person you want to be if you're not living the life you want. That is why it's essential to find out who you are and what makes you happy. In this blog post, we will discuss eight steps that will help guide the way in finding yourself and becoming more authentically "you."

Step One: Use a journal to track what you are feeling on any given day. Take note of the time, your mood, and how that changes throughout the day. This can be done in pen or pencil and then stored away until it is safe to look back at them; this will allow you to see patterns over time and give insight into why certain feelings arise for you more than others.

Step Two: Try out different things every week just for fun! It doesn't matter if they're items from your "to-do" list or not - anything goes so long as it's something new and exciting for you, even if only temporarily. You'll find yourself getting excited each time something else comes up because there is so much joy in finding new experiences when it comes to life.

Step Three: Ask yourself what are your deepest desires? What is it you want to accomplish in life, and why does that matter most to you? This can be done through meditation, journaling, or conversations with close friends. The key here is getting out of the day-to-day doldrums and looking at the big picture, so you have a better idea as to where you're going next.

Step Four: Get outside more! Living by our computer screens all day long has made us forget about nature's healing properties; everything from lack of vitamin D to noise pollution contributes toward this stress being put on our bodies daily. That said, make sure if there's one thing you do for yourself every single day, it'll be something that is fulfilling to you.

Step Five: Trust your gut. Living our lives based on what we think other people want us to be is a surefire way to get lost in the dark and lonely pit of self-loathing where no one can find us. So stand up for yourself, experiment with who you are, and let go of anything holding you back from being true to yourself!

Step Six: Forgive others when they wrong you. Whether it's an ex-boyfriend or girlfriend, parents or co-workers, don't hold onto anger that will eventually eat away at your soul like cancer does so often these days. Anger isn't healthy - forgiveness, on the other hand, heals not just the individual but those around them as well down the line because they will realize their fault.

Step Seven: Be honest. Living a life of lies may be easier in the short term but is only ever lead to an eventual downfall, whether it's financial issues or health problems that spiral out of control over time. The truth will set you free and give back what living in denial has taken from you - so take those steps towards honesty today!

Step Eight: Finally, live your best life by doing things for yourself and no one else. If this means taking some time away from friends/family who don't make us happy to do activities we love with ourselves, then all the better! After all, there isn't much point in being alive if we're not enjoying it while we can."

- Lusene Donzo

COLLECTION NOTICE

Do you have collections that are holding your credit score down?

I can help. I am an experts who will work with you to remove those pesky collections and raise your credit score by 40 points or more. It’s a process, but I know it works! You deserve better than this. Let me show you how we can make it happen for you today.

Clara had 8 medical collections she thought were "impossible to remove" not even the credit repair company she hired could get rid of them.

Pleading with her collectors, Clara offered to pay the debt off if they just removed the negative marks from her reports. But they refused.

Lucky for her, one night she stumbled on my credit ad and having nothing to lose… she decided to schedule a call with me.

Well she was shocked when just a 4 weeks later, her credit scores jumped from 586 to 700. And “all 8 derogatory items were deleted” from her reports -- all thanks to me.

The best part? Now this could be you too!