Americans’ Credit Scores Sink To New Lows – Now Your Solutions…

Low personal credit scores make it very difficult for most Americans to take advantage of low mortgage interest rates and to qualify for any financing to start a business.

In fact, figures provided by FICO® show that 25.5% of consumers — nearly 43.4 million people — now have a credit score of 599 or below, marking them poor risks for lenders.

This is due to several important reasons:

1. The banks are taking over 2 TRILLION dollars out of the consumer credit markets last year and this year. That means they are cutting off your personal credit card limits (just like they did two years ago on HELOCs (Home Equity Lines of Credit) to protect their risk). That very move will increase your personal revolving debt ratios, and therefore drop your personal credit score dramatically.

2. Consumers are making the mistake of paying their minimum balance on their credit cards. You must pay at least $1 over the minimum balance to get any increase in personal credit score.

3. Consumers who have a small or home-based business are operating as a sole proprietorship.
That means they are using their personal credit cards to finance their business start up (a huge mistake). This typically is a result of their accountant recommending to “keep things simple” if the small business owner is unsure how much in profits they will generate the first year.

Solutions to improve your personal credit score:

1. Pay at least $1 over the minimum payments each month.

2. Set a goal to reduce your personal revolving debt (credit cards) to 5-20% the best ratio. First, develop a personal emergency fund equal to 6-8 months of your personal monthly expenses.

3. Avoid major derogatories like a personal bankruptcy or large credit settlement that can destroy your personal credit score.

3. If you are operating a business or looking to start a business to increase your income (a good idea), form a separate legal entity first, from the start. Now work on separating your personal and business credit so if you have a low personal credit score you can develop a strong business credit score.

4. Separate your personal and business credit.
Your business must develop a track record with Dun & Bradstreet®, Corporate Experian® and Equifax® Small Business to put your business in a position to receive more financing support from the banks, better joint venture opportunities and prevent losing business from other business partners because your business is “financially naked” with no business credit profile properly built! This can be very expensive if you do not set this up properly.


Listen to this powerful 1 hour recording on how banks work and how to secure capital for your small business:

Costly mistakes to avoid with Dun & Bradstreet®. Listen now:

About The Author: Scott Letourneau is the CEO of Fast Business Credit, Inc. When it comes to securing cash and vendor lines of credit and avoiding costly mistakes his company is the authority. For further assistance regarding the development of business credit go to or call FBC at 1-888-313-6333 or 702-977-5246.