April
2009
Credit Score Can Help or Hurt Your Small Business Financing in Honolulu
Your credit score is a good way to determine what interest rate you can get on a loan or if you can get financing at all. It’s the same all over the United States, even in Honolulu, Hawaii. If you have a good credit score (over 700), banks will compete to give you the best rate. If you have a score lower than 600, its time for you to go back to the drawing board and try to get your credit back on track.
Whether you’re looking for a home loan, a vehicle loan or small business financing in Honolulu, banks will ask to see all three of your credit reports. They will look to see if you have any outstanding debt or debt that is in collections. They will weigh your debt to credit ratio as well as equity and income to see if you have the means to handle your debt responsibly.
Your credit score will follow you where ever you go, and if it’s a poor score, it’s like having a rain cloud over your head. Some employers request a credit check as part of the interviewing process. You don’t want your credit score keep you from employment. It is important to be responsible when considering taking on a loan. Only borrow what you can repay, and do not live outside your means. If you do find yourself in trouble of defaulting on your loans, contact your financing agency they can work with you so you can meet your financial obligations.
