If you run a small business and have credit trouble, you’re not alone. Nearly 47% of Americans have credit card debt. Debt affects everything, including your ability to rent an apartment or a car. But the good news is you can repair your credit.
Credit repair has many great benefits. You get your finances back on track, save money on hefty fees and interest rates, and more. The best thing about credit repair is that it boosts your score almost instantly, and nothing feels better than seeing your credit score go up. Here are the benefits of credit repair to businesses.
- It Saves Money
Fixing your credit saves you a chunk of money over time. Let’s assume you have a low credit score (for the record, almost 16% of US adults have poor credit scores)—you’ll not only pay more for credit cards, but also for homes, cars, and other assets.
A poor credit score attracts higher interest rates, which means you’ll pay more for individual and business assets. However, with a good credit score, you can save money on paying hefty fees and interest rates.
- Lowers Debt-To-Income Ratio
Nothing kills a business slowly like debt. If you have more debt than the money coming in, your debt-to-income ratio will affect your business’s creditworthiness.
Having too much debt lowers your chances of qualifying for an auto loan or mortgage. If you want your business to stay afloat, your debt-to-income ratio should be no higher than 28%.
One of the best ways to reduce business debt is by making payments easy for customers. A credit repair merchant account allows you to take credit and debit card payments quickly & easily, streamlining business operations.
- Streamlines Payments
Having multiple loans can take a toll on your sanity with time. To streamline all your payments, consolidate all your debts, especially if you have multiple creditors.
How do you do this? Hire a credit repair service. Almost 26% of people who hire a credit repair company improve their score by more than 100 points. A credit repair service helps review your debts and prioritize urgent payments. The company can help you negotiate lower interest rates or get removed entirely from the debt list.
In short, credit repair helps you prioritize debts based on urgency. You make payments on time, know exactly when each payment is due, and how much you owe.
- Peace of Mind
Credit repair is not a one-day event. It takes time to go through credit reports, call creditors, and sort out payments. But with a credit repair service at the helm, you won’t need to spend a lot of time on the task. You simply leave everything to the professionals.
When you’re not busy focusing on debts and how to pay them, you can focus on growing your business. The credit repair company will spend time handling complicated legal situations and finding the best ways to solve your debt problems.
In 2021, the credit repair market was worth almost $3.4 billion. However, not all businesses seek credit repair—even those wallowing in debt. Some choose to file for bankruptcy or use their own knowledge to get back on track.