|  | 


Strengthen your personal credit score before starting a new business

your business

Strengthen your personal credit score before starting a new business

If you’re thinking of starting a business, one of the first things you need to consider is the strength of your personal financial position.

Even if you’re only at the research stage of your business start-up process, it’s easy to find yourself trapped in a cycle of personal debt – if things don’t go to plan the bills quickly mount up and you don’t have the income to cover your expenses.

One of the negative consequences of running up personal debts is that even once you’ve worked through your challenging situation, and established a more stable financial position for yourself, it’s likely that you’re going to be left with a compromised credit history that will inhibit your ability to successfully apply for loans, credit cards, or finance in the future.

It’s important to try and repair the damage that’s been done. Here are some steps that you can consider when looking to rebuilt your credit history

Simplify your personal financial affairs

The first step to take is to consolidate all of your debts. Usually the simplest way to tackle debt consolidation loans for bad credit is to bring any credit cards or store credit facilities into a single personal loan. This will help to simplify the repayments required and will most likely give you a lower overall interest rate charge, saving you money in the longer term. Consolidating your debts as part of a debt reduction strategy is a good indicator that you’ve got your debts under control and can effectively manage your finances – particularly if you’re considering applying for an unsecured business loan.

Your home could be your most important asset

If you own your own home, or property of some sort, then unlocking your equity from this asset can help to reduce your unsecured personal debts. The advantage of using the equity in your property to manage your finances is that by securing your debt against the asset you will be able to achieve a lower interest rate, thereby saving you money. However the drawback with this approaches that if for some reason you are unable to maintain payments against the debt that you’re servicing, then you are placing your home at risk.

Ensure that you’re setting yourself up for success

Don’t set yourself an unrealistic payment plan, it will only end up causing you more problems if you remain in a financially vulnerable position. Shop around financial institutions to ensure that you’re getting the best interest rate possible, and a repayment structure that suits your circumstances. You need to be able to commit to a realistic budget that can cope with the monthly repayments that you are setting for yourself.

Keep tight control of your expenditure

Until you can demonstrate that you have returned to financial stability, it’s imperative that you don’t take on any new debts. Avoid the tempting offers of new credit cards, or lines of credit with low interest rates – stick with the debt consolidation plan that you’ve set for yourself. Repair your credit history and begin to look to a sound financial future.



Related Articles

  • Aussiebum apologizes for advert featuring anti-immigration bumper sticker

    Aussiebum apologizes for advert featuring anti-immigration bumper sticker

    The underwear company – a firm favorite with gay men – has apologized for the ‘innocent oversight’ Australia’s most famous underwear brand, Aussiebum, has been criticized on social media for one of its ad campaigns. One of the images features four typical Aussiebum hunks lounging around in the brand’s designs. They’re posing in front of

  • A new way of building that allows you to do amazing things

    A new way of building that allows you to do amazing things

    Simple technology that allows space, people and the things they live and work with, to be where and when they are needed, such as… Versatile, self-deploying, relocatable buildings This is proven technology: This film shows a 64m2 unit that opens and closes in 10 minutes using a hand-held battery-powered drill. Everything you see in the unit

  • Virgin Money launches Rainbow Credit Card

    Virgin Money launches Rainbow Credit Card

    Each time the card is used, money will be donated to the LGBT charity, Stonewall Virgin Money in the UK has announced the launch of a rainbow credit card. Each time holders use the card in the first three months of purchase, Virgin Money will donate £1 to LGBT charity Stonewall. In a press statement

  • Starbucks features same-sex couple in new seasonal cups advert

    Starbucks features same-sex couple in new seasonal cups advert

    The illustrated figures share a drink in the coffee giants new ‘Give Good’ campaign The new Starbucks seasonal cups Starbucks features a same-sex couple holding hands in a promo film for its new ‘Give Good’ holidays campaign. Every year the coffee giant unveils its seasonal cups. In recent years it has often faced criticism for

  • This Canadian pop-up restaurant is run by HIV+ chefs

    This Canadian pop-up restaurant is run by HIV+ chefs

    The restaurant fights against stigma Chefs at Casey House’s pop-up restaurant Canadian organization Casey House is opening a pop-up restaurant run entirely by a HIV+ staff to fight against stigma. It’s part of the campaign Break Bread Smash Stigma. June’s, named after Casey founder June Callwood, runs in Toronto from 7-8 November. Casey House is teaming


Pic of The week

Pic of The week

4GUYS Magazine is your essential guide to the Toronto, Vancouver, Montreal, Calgary and Seattle area. You’ll find the latest information on dining, nightlife, culture, news, politics, communities, and trends in Toronto—everything to help you make the most out of living in and around the city.

Division of

Division of

Our Directory

Our Directory

Maximize your Business Visibility and Accelerate your Marketing

Featured Models

Help with $2, $5, $10, $20, $50

Help with $2, $5, $10, $20, $50

If you like our site Help us to make it better. THANK YOU



Add as many events as you want for FREE

Be on the next 4GUYS COVER

Be on the next 4GUYS  COVER
Please wait...

Subscribe to our newsletter

Want to be notified when our article is published? Enter your email address and name below to be the first to know.