How to Fix Your Credit before Applying for a Small Business Loan
A Home Business Article Contributed by Cassandra l. Keller
How to Fix Your Credit before Applying for a Small Business Loan
If you have an error on your credit report it could prevent you from obtaining a small business loan. A 2004 study revealed that 1/4 of credit reports surveyed had errors big enough to cause a consumer to be denied credit. If this happens to you when applying for a small business loan, there are some steps you should take to fix your credit report and hopefully receive the loan you are seeking.
What to do Once You are Denied a Small Business Loan Because of a Credit Report Error
If you are denied a small business loan because of an error on your credit card you need to prepare for a legal battle. While filing a lawsuit won't be the first thing you do, you will need to go about fixing your credit report as if you will end up in court one day.
In preparing for a legal battle, you should document everything that happens in your quest to correct your credit report. Make sure your record are detailed and cover each event as it unfolds. Even if you don't end up using these records in court, they may come in handy as a weapon. If you can show that you are keeping track of events, you may also be considered more trustworthy. Be sure to keep these records as they happen so the details are still clear in your mind when you log them.
Mind Your Manners, Your Small Business Loan May Depend on It
Your quest to fix your credit report and obtain a small business loan may leave you feeling stressed. Despite this factor, it is vital that you remain calm while speaking to representatives regarding your erroneous credit report. In other words, resist the temptation to scream and yell because if you do end up in court, this will not be to your advantage.
A good way to keep from screaming is avoiding a telephone conversation as much as possible. You can contact your adversaries via a certified letter. Besides, consumer protection laws require you to notify the credit bureau in writing anyways. Once you have mailed a letter, be sure and confirm it solved the problem. This will probably take a phone call, once you get a creditor on the phone who says the problem is correct or they will correct it, request confirmation. Ask that they send you a copy of the UDF - universal data form - or a letter confirming the correction has been made.
If at First You Don't Succeed Keep Trying ... You Want That Small Business Loan Don't You?
If your initial try to repair your credit report fails, try one of the following tactics ...
1) Hire a credit repair company.
2) Chronicle the case on a Web site and notify the credit bureau of your actions.
3) Work up the chain of command.
4) Call a reporter and let them tell your story to the public.
5) Write to the Federal Trade Commission.
