Personal Credit History Counts When Applying for a Loan
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Mar 9, 2008 Posted by Layla Masri
When applying for a line of credit or a loan with a bank, your personal credit history counts a great deal in the decision to grant you credit or not. This is not the only factor but it a very important factor. Underwriters look at your past credit history closely to give them some indication on how you have handled your creditors in the past. Before applying for financing for your business or personally, make sure that you have requested a copy of your credit history from all the agencies. Once a year, you, as an individual, have the right to one free credit report from each agency. Make that call and get a copy of your report and pay close attention to all the information reported. If you see any information that is incorrect, contact them right away and get it correct before applying for credit -- it could make a world of difference.
If you do not have any established credit, start with a credit card company that will provide you a credit card that is secured by a Certificate of Deposit. Tell your daughters, sisters, mothers and other female friends how important it is to have good credit and to keep good credit. It could make a huge difference in your success as a business owner and individual consumer.
Lurdes Ramos is a Commercial Relationship Manager for Sun Trust.