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If you are looking for a personal loan, you need to consider your personal credit score even if you want the money for a business. Very often, small business entrepreneurs don’t understand the relationship between a personal credit score and a business loan. Here’s 4 tips for improving your personal credit score that will help with both.

Keep those numbers low

Just because you can get the credit, doesn’t mean you should take all of it. In fact, the amount of credit you use is quite often considered a metric to gauge your default risk. It’s important to pay back certain kinds of credit in a priority sequence. For example credit cards and unsecured lines of credit should be high on the list.

Experts recommend using less than 10% of the credit available to you will help your personal credit score.

Separate business and personal

Keep in mind that your business credit score will also include the names and addresses of the firms that you do business with. It’s a good idea to try and keep them separated on your credit reports.

Avoid problems when you can

If you leave any of your debt unpaid long enough, you’ll have a credit collection agency coming to the door of your business or home. It’s always better to avoid a situation where creditors come after you in a public way. Keep in mind that banks and lending institutions are often flexible and willing to help.

Check your reports

If you check your credit reports regularly, the chances are you’ll find any issues before they become problems. Visit the websites of the agencies involved. They can give you instructions on how to check your reports.

Keep in mind that you’ll need to show a little patience to. Elevating your personal credit score is something that you need to work out over some time.