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#10Things to Know About Credit

Contact Author Deedee Crossett, San Francisco Institute of Esthetics and Cosmetology
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With the recent Equifax credit breach, the topic of credit has been in the news and blasting through social media. This month we are focusing on #10things you should know about credit!

1. Why focus on credit? Your credit history reflects your ability to follow your lender’s terms.

2. What is a credit report? Your credit report is made up of information on your existing credit accounts and loans, provided by your lenders.

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3. What is a credit score? Three credit bureaus (Equifax, Experian and TransUnion) use various measurements from your credit report to calculate your credit score. It’s like giving your credit worthiness a grade.

4. What are the various credit ranges? Credit ranges include: 760+(excellent), 700-759 (good), 621-699 (fair) and 620 & below (poor). If you don’t have a credit score, it may be because you have not had enough credit to calculate a score.

5. What lowers a credit score? You can lower your credit score with: a brief credit history, by exceeding credit limit, by paying bills late and by applying for new credit frequently.

6. How can your credit score affect your business? Your credit score affects your: ability to borrow money, cost of insurance premiums, likelihood of a landlord renting a commercial space, interest rates on mortgages and credit and service agreements with utility companies.

7. How will improving your credit score benefit you? Good credit generally means lower interest rates and overall loan terms. It may also affect the amount you are able to borrow.

8. Why should I check my credit? It’s free! Annualcreditreport.com lets you request an annual credit report from each of the three credit bureaus.Remember to report and resolve any errors

9. How can you improve your credit score? You can improve your credit score by: paying bills on time EVERY time, only applying for new credit limits when you need it, mixing “paid on time” credit (car loan, credit card, student loan) and keeping a balance on revolving lines under 30% of your spending limit.

10. Peace of mind. A healthy credit score means your finances are manageable and you can continue to build your wealth. Relax knowing that your building a strong financial future for your business.

Founder and owner of the San Francisco Institute of Esthetics and Cosmetology since 2002, Deedee Crossett is an industry pioneer for raising the bar of undergraduate education for cosmetologists and estheticians. She can be reached at www.facebook.com/deedee.crossett and Twitter @DeedeeCrossett #10things.

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