Customized financing to consolidate high-interest debt or fund major purchases or expenses.
WAYS TO USE YOUR LOAN
Tailored commercial financing that supports all your business needs to help you grow quickly.
Tailored for entrepreneurs that want to establish additional active and passive income streams.
Customized financing to consolidate high-interest debt or fund major purchases or expenses.
Your credit history can open doors. It's a pivotal element in the landscape of your financial health, serving as a comprehensive and detailed chronicle of your borrowing and repayment behaviors over time. This report not only reflects your fiscal discipline but also influences your access to financial tools like personal loans, better interest rates, and even professional opportunities. Whether you have an established credit history, but don't understand how to fully leverage it, or you're just beginning to understand its significance, delving into the nuances of credit history can reveal powerful strategies to use to your advantage. Read on to learn about the importance of credit history and how to build it.
Credit history is a comprehensive record of an individual’s borrowing and repayment activities over time. For high-income earners, business owners, and solopreneurs, a strong credit history is not merely a reflection of fiscal responsibility; it defines financial opportunities, like preferential loan terms, and can influence creditworthiness when it comes to loan accessibility to loans such as business acquisition loans.
To build or improve credit history, it’s critical to understand the contributing components:
Whether you are a salaried professional, entrepreneur, or business owner, a clean credit history unlocks many doors to financial opportunities. A robust credit history not only supports seamless loan approvals and secures favorable interest rates, it also opens avenues to increased credit limits and enhanced employment prospects. Understanding these intricacies allows individuals at any stage of their credit journey to strategically improve their credit score, thereby optimizing their financial potential and stability.
Let's review key benefits of good credit history:
If you're embarking on the journey to establish your creditworthiness for the first time, or rebuild from a lower score, consider these four strategies for enhancing your credit score. Understanding these methods can empower you to build a strong credit foundation, or repair a low score, ensuring future financial flexibility and favorable borrowing terms.
If you’re familiar with the basics of building credit, the next step is to understand the long-term impacts of credit history on financial stability and access to broader economic opportunities. Establishing smart financial habits is necessary to maintain it long term.
Building a good credit history is a gradual process that goes beyond opening a secure credit card or becoming an authorized user on a family member’s credit card. Consistency in your payments is an important factor, as credit reporting agencies want to see how well you practice financial hygiene over the seasons.
Here are practical steps to build an “Excellent” credit history.
A varied mix of credit accounts, such as credit cards, installment loans, and retail accounts can bolster your credit history. Diversity in credit demonstrates your ability to manage different types of credit responsibly.
Be judicious when diversifying. Attempting to boost your credit score by opening too many credit accounts within a short amount of time can hurt your credit score.
Aim to keep your credit utilization ratio below 30%. High credit utilization can negatively impact your credit score, even if you make timely payments.
Prioritize paying off loans with high interest or variable rates. When interest rates rise, so does the amount you owe, making your debt more expensive in the long run.
Regularly using credit and paying off balances on time showcases your creditworthiness. Even small, regular transactions contribute positively to your credit history.
Make a habit of checking your credit score periodically. This will give you an idea of how your expenses influence your score, and give you the opportunity to correct any errors.
Check your free yearly credit report from TransUnion®, Experian™, or Equifax® and compare them against each other. According to the Federal Trade Commission, 5% of credit users’ reports have errors that affect their overall credit score.
Length of time of open accounts is an important factor impacting credit history. The longer your credit accounts stay open, the more proof there is of your good credit habits. Keep your older credit card accounts open even if you use a newer one for current expenses.
Building and maintaining a leverageable credit history is an ongoing process that requires disciplined financial habits and strategic planning. Those who are financially savvy and informed stand to gain significantly from it. At BHG Financial, we offer tailored services to help you harness the benefits of a good credit history toward your next financial venture, whether through business or personal debt consolidation loans.
If you’re new to credit, good spending habits can yield a high credit score within six months. However, reaching an “Exceptional” credit score typically takes between seven and 10 years.
No. If you filed for Chapter 7 bankruptcy it will remain visible on your credit history for up to 10 years, while Chapter 13 remains visible for up to seven. In both cases, the bankruptcy record is removed from your credit report automatically.
Not all solutions, loan amounts, rates or terms are available in all states.
1 Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile.
2 Personal Loan Repayment Example: A $59,755 personal loan with a 7-year term and an APR of 17.2% would require 84 monthly payments of $1,228.
Annual percentage rates (APRs) for BHG Financial personal loans range from 8.72% to 27.87%, with terms from 3 to 10 years.
No application fees, commitment, or impact on personal credit to estimate your payment.
Consumer loans funded by Pinnacle Bank, a Tennessee bank, or County Bank. Equal Housing Lenders.
For California Residents: BHG Financial loans made or arranged pursuant to a California Financing Law license - Number 603G493.
IMPORTANT INFORMATION ABOUT ESTABLISHING A NEW CUSTOMER RELATIONSHIP
To help the government fight the funding of terrorism and money laundering activities, Federal law re-quires all financial institutions to obtain, verify and record information that identifies every customer. What this means for you: When you apply for a loan, we will ask for your name, address, date of birth, social security number and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents. If all required documentation is not provided, we may be unable to establish a customer relationship with you.