Why Should I Pull My Own Credit Reports Before Applying for a Small Business Loan?
One of my biggest pet peeves when working with my small business clients to help them apply for a small business loan is when they give me a hard time about obtaining their credit reports. One thing I have discovered is some people are very paranoid when it comes to sharing their credit reports with small business loan brokers like me. I completely understand being cautious and having some level of skepticism in situations like this. However, if you are an entrepreneur or small business owner and you approach a small business loan broker to assist you with applying for a small business loan, you need to know that they will most likely ask to see your credit reports.
It’s important for the small business loan broker to be able to analyze your credit history to determine what you most likely will qualify for. Since there are many small business financing programs that require a credit check for approval, a small business loan broker will want to see your credit reports to have a good understanding of what they are working with. Analyzing your credit history is the key to finding a suitable lender. This is why it is important for you to pull your own credit reports before approaching a small business loan broker for help (because they will likely require you to do so anyway).
It’s also good to obtain your credit reports before you approach a small business loan broker for help with securing a small business loan so you can also see what condition your credit history is in. Understanding what your current credit situation is like will also help you determine the level of difficulty you may face with getting approved for a small business loan.
Monitoring Your Personal Credit is Also Important
Whether you plan on applying for a small business loan now or in the future, you should always monitor your personal credit history. Since your personal credit history can be a huge factor in you getting approved for a small business loan, monitoring your personal credit over time will benefit you in the long run. Getting in the habit of monitoring what your creditors are reporting to history will give you a good idea of what chances you have of getting approved for a small business loan.