Clean up your Credit before Applying for a Loan

If you are starting your own business, it likely means you will need to apply for a business loan. It is rare that a start-up business has all the money it needs. If you do apply for a business loan, you will first be required to check your credit report. The lenders will check this first in order to determine whether they would give you a loan or not. You should make sure that all the information in your credit report is updated and correct. The process of checking your credit report is as follows.

Order a report from one of the bureaus

There are three main credit bureaus that can run your credit report: Experian, Transunion and Equifax. You should order a copy of your credit report from any of these agencies. The reason is that every time your credit report is pulled out by a lender, your credit score is affected. However, ordering directly from any of these organizations won’t affect your credit score negatively. You are entitled to a free report from one of these agencies once every year. You will need to provide proof of identification and personal information to get access to your report.