Thursday, May 7, 2015
I Filed Two Bankruptcies So Can I Start A Business?
May 5, 2015
I have filed two bankruptcies and my credit is horrible. How can a person like me even think about going into business? Bad Credit, Iowa
Dear Bad Credit:
A bankruptcy is nothing but a reorganization of your finances and sometimes it is needed -- but only as a last choice. A bankruptcy stays on your credit report for 10 years. It takes at least 1 to 2 years or longer to clean up your credit. So you definitely do not want to wait that long to start a business.
Remember most of the companies claiming they can clean up your credit are not legitimate. Only you can clean up your credit so as you build and grow your business, you do need to order your credit reports yearly from the three credit bureaus (Experian.com, Equifax.com, TransUnion.com) at http://www.AnnualCreditReport.com.
This means you are going to have 3 different credit scores. If your credit scores are between 300 – 500, then you are in bad financial shape. A 620 is pretty good but your goal is to have a credit score over 700 or 750.
Remember you might have to make phone calls and write letters to fix your credit. It’s estimated that 79% of all credit reports have some type of errors, over 25% have major errors and over 30% have accounts opened that should have been closed.