10 Things That Won’t Impact Your Credit Rating

A lot of people have misconceptions about the things that actually have an impact on their credit rating. When you understand which things do not affect your credit, you will have a better idea as to what you should focus on. While these things may be important, they won’t have bearing on your credit rating whatsoever. The more of this information you get, the easier it will be to improve your credit so you can get those important loans.

  1. Checking Your Credit Report

It is always a good idea to check your credit report once in a while to see what exactly is on it. Checking your report won’t impact your rating negatively at all, so you won’t have to worry about that. You should make a point of doing this at least once each year. There could be something on your credit report that shouldn’t be there.

  • Income Fluctuation

Changes in the amount of money you make from your job won’t impact your credit, but it could affect your ability to get a loan. If you aren’t making as much as you used to, you might have problems with getting approved. Those who start making more money at their jobs have a better chance of getting the loan they need.

  • Your Personal Details

None of your personal information, such as your address, has any bearing whatsoever on your credit. While lenders do use these details to get more information on you when you apply for a loan, they don’t affect your credit in any way. Credit files and records do not list details like marital status, education, religious or race.

  • Debt Card Charges

The charges you make with a credit card will never impact your rating at all. This only applies to credit cards. When you use a debit card, you are spending money that you already have as opposed to borrowing on a line of credit. There are no bills that you have to worry about paying each month with a debit card.

  • Credit Rejection

If you get denied for a line of credit, you won’t have to worry about it affecting your credit rating in the slightest. Submitting a lot of credit applications within a short period of time can hurt your rating, but the actual result doesn’t matter.

  • Small Business Payments

There are some people who also believe that paying small businesses for services like lawn care can damage their credit, but this just isn’t true. As long as the business owner does not turn over any information to a credit agency, nothing bad will happen with your rating. Just make sure that you pay the merchant in full and on time.

  • Paying Other People’s Bills

If you are helping someone out by paying their bills, you shouldn’t expect your credit to be affected either way. The other person’s credit can be impacted positively or negatively, depending on if the bills are paid on time. You shouldn’t do this just because you think it will help your credit, because it won’t.

  • Comparing Rates

While it is a good idea to spend some time comparing interest rates for a loan you want, it won’t have an effect on your credit rating in any way. You can get all of the quotes you want from lenders online without being concerned about this. None of these inquiries are going to count against your credit at all.

  • Change in Marital Status

Those who get married can rest easy knowing that their credit rating will remain unaffected by their marital status. Whether you are getting married or divorced, you won’t see any change in your rating whatsoever. Some people think that this can count against you, but nothing could be further from the truth.

  1. Putting Another Authorized User on Your Credit Card

If you have decided to put a friend or family member as another authorized user for your credit card, you won’t see a change in your rating. The only way that you could experience a dip in your credit is if the person uses the card and does not pay the bill on time. It is important that you completely trust whoever you choose to add as an authorized user.

What Things do Affect Your Credit?

We just went over ten things that have no affect on a person’s credit, but it’s important to know what does. Not paying your bills on time can take a heavy toll on your overall rating, which is why it’s important to be diligent about this. If you want to take out a loan, make sure you can pay it back first. Bankruptcies, liens and loan defaults can all put a huge black mark on your credit report.

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7 Cash Flow Management Tips for Small Businesses

Anyone who owns a small business needs to be very aware of how they manage their cash flow. This is an important issue regardless of how much financial support your business has. You need to keep a close eye on all of your expenses and anything else related to your business’s finances. One of the most common reasons that small businesses fail miserably is because the owner didn’t focus enough on this particular aspect. In this article you will learn about some of the best ways to handle your cash flow.

  1. K now Your Borrowing Ability

Before you decide to borrow any amount of money, it is crucial that you determine how much risk your business can take on. You need to know exactly how much you will be able to borrow so you can pay back the full amount on time. A loan can be very helpful when you are ready to expand, but you have to consider your business’s overall finances before making a choice. Failing to repay a loan can easily ruin your business in a matter of months.

  • Create a Budget

You also need to make a point of creating a detailed budget for your business. It is essential that you know how much money you spend on a regular basis. List out all of your recurring expenses each month. It’s also a good idea to revisit your budget a couple of times each year to make any necessary adjustments. Even the smallest of businesses need to have an established budget.

  • Hire a Great Accountant

One of the best ways to ensure that your business’s finances will stay on track is by hiring the right people to manage them. When you are looking for an accountant, you need to seek out someone with lots of experience. This person will be responsible for keeping your finances organized, so you need to have high standards. Take the time to meet with a few candidates before making a decision.

  • Cut Unnecessary Expenses

You should take a look at all of your current business expenses to see if anything can be reduced or cut out entirely. There is a good chance that you will find at least a few different things that can be thrown out. Most businesses don’t even realize just how much money they are needlessly spending on a regular basis. Look for ways to save money on your expenses as well. There is almost always a cheaper way to do most things. Just make sure that saving money doesn’t come at the expense of your business in any way.

  • Sell Your Equipment

If your business is going through a rough time financially, you might want to consider leasing or even just selling any equipment you aren’t using. This can be a very effective way to get the money you need to carry on into the future. It means that you can get the necessary funds without having to get a loan, which is always nice.

  • Look into the Future

Nobody knows for sure what the future has in store, but it’s important that you at least do some speculation from time to time. By anticipating your business’s needs for the next year or two, you can potentially improve your cash flow situation. Take a close look at how much income your business has brought in over the last month to get some idea about what the future holds. If the future looks particularly bright, you might want to think about applying for that loan you’ve wanted for a while.

  • Increase Your Cash Flow

Increasing your business’s cash flow is easier said than done, but there are plenty of options available. One of the first things you should do is to look for ways to save money on overhead so you can increase your profit margins. The less money you spend on making your products, the bigger your profits will be. You might also want to think about increasing your advertising to bring in new customers. While this will require you to spend some money upfront, it can be well worth it depending on how things turn out.

Always Focus on the Bottom Line

When you are trying to manage your small business’s cash flow as effectively as possible, you need to keep your bottom line in mind. Every decision you make should be for the betterment of your business. Those who use this mentality will have no problem with achieving long term success. Just because you are going through a rough patch now doesn’t mean it will last forever. The attitude that you adopt will play a huge role in how successful you are at keeping your business afloat even through the worst times.

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