6 Easy ways to keep your Credit Score Eligible for Business Loans

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6 Easy ways to keep your Credit Score Eligible
for Business Loans
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• As a small business owner in India, you probably
  know that keeping a sound credit score is
  integral for securing a business loan. This is
  because it tells the lender how trustworthy you
  are. A high credit score indicates that you pose
  minimal risk to the lender. So, getting a
  business loan approval would be a breeze,
  provided you meet the other standard requirements
  of the lender such as annual revenue and
  overall business experience.
• A low credit score, on the other hand, will make
  it very difficult to get an unsecured business
  loan, even if you meet or exceed the other
  requirements.
• Exactly, what is a good credit score?
• The credit score scale ranges from 300-900.
  Anything above 750 puts you in good stead to
  secure a small business loan in India.

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• How can you check your credit score? 
• In India, there are six primary credit bureaus to
  perform credit assessments. They are CRISIL,
  CIBIL, ICRA, Equifax, CRIF High Mark, and
  Experian. You can log into any of their websites
  and check your credit score, before you apply for
  a small business financing loan.
• What can you do if your credit score is low?
• A good credit score is the first thing a lender
  looks for in your business loan application. It
  is a measure of your ability to clear your debts
  on time, based on your past transactions. A poor
  credit score or the lack of one severely dents
  your chances of seeing the stamp of approval on
  your business loan application form.
• But it is not the end of the road. Even if your
  present credit score does not cross the threshold
  mark, there are ways you can rely on to improve
  and maintain it.

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• Let us look at 6 of the most important ways
• Keep Regular Tabs on Your Credit Score
• Many people make the cardinal mistake of checking
  their credit score right before they are in need
  of easy small business loans. This might not give
  them enough time to deal with a negative remark
  on their credit score report. On the other hand,
  checking your credit score periodically once
  every 4 or 6 months will give you ample time to
  take the necessary steps to counter situations
  like these, much before applying for a finance
  for business.
• Also, there is a misconception that checking your
  credit score affects your rating. The reality is
  when you check your credit score, it is
  considered a soft inquiry. Unlike a hard
  inquiry, a soft inquiry does not affect your
  credit score and is not visible to lenders.

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• Pay ALL Your Debits Timely (even the ones you
  consider small or insignificant)
• Your unpaid debts credit card bills, EMIs can
  be a major roadblock to your application for
  finance for a business. Any payment defaults will
  drag your credit score down. Be it a cash crunch
  scenario or a case of missing the due date, you
  will eventually lose out on getting a small
  business loan.
• So to avoid such scenarios, ensure that you set
  reminders for all your monthly payments. You can
  turn to technology such as mobile phone
  applications to assist you in this regard. As far
  as cash crunch scenarios are concerned, effective
  budgeting beforehand can help you stay out of it.

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• 3. Avoid Simultaneous Loan Applications
• Applying for small business financing loans to
  multiple lenders in a short time span reflects
  poorly on your credit score. In such cases, your
  credit score report will throw up multiple hard
  inquiries inquiries made by lenders, which
  will adversely affect your credit score. To a
  prospective lender, you will come across as a
  credit hungry person.
• Multiple business loan applications can also
  indicate that your debt burden may increase in
  the future a red flag for lenders.
• Be Wary of Joint Loan Applications
• To increase the chances of a business loan
  application being approved, many turn to joint
  loan applications for business capital loans.
  Although this method does improve your chances,
  what you may miss is a possibility that your
  co-applicant makes a mistake leading to a default
  in payment. This will affect your chances of
  getting small business loans online.

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• Keep an Eye on Your Credit Card Utilisation
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• For all your credit cards, you have to adhere to
  one simple rule do not allow your card
  utilization to breach 30 of the total credit
  card limit. This will keep your credit scores
  stable. A high credit utilization limit can also
  indicate the possibility of a looming debt
  burden. If your credit utilization is high, take
  steps to lower it. Be financially disciplined and
  avoid using your credit card for all your
  purchases. Excessive usage allows the lender to
  look at your spending habits, something best kept
  to yourself.
• A tip Ask your credit card company to alert you
  if you are closing in on the utilization limit.

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• 6. Take A Loan
• At first glance, this may seem counterproductive.
  But, it is actually a very effective way to boost
  your credit score. This is especially handy if
  you dont have a credit score at all. Remember
  having no credit history doesnt qualify you as
  a good candidate to receive a quick business
  loan. This is because the lender will have no
  idea if you can repay on time.
• So, take an easy business loan an unsecured
  business loan is a better option if you dont
  want to risk mortgage. Pay your instalments on
  time, and if you can, try to close the business
  loan early. This will help you build your credit
  score.
• Visit us https//www.tribe3.com/

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• Author BIO
• Tribe 3 offers the best unsecured business
  loans online in India, on transparent and
  competitive interest rates. Click to know more.
• Contact us 917666207768
• Visit us http//www.webcogitate.com/