Consolidating debt hurt credit score

It’s best to approach a lender about a business consolidation loan when your business finances (revenues & profitability) have a positive trend.

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Knowing when it’s the right time to consolidate business debt depends on the terms of your existing debt, your business’s current finances, and your personal credit.

SBA loans will likely offer you the best rates and longest repayment terms of all business consolidation loan options.

Below we look at what credit improvement milestones you need to make in order to potentially qualify for both an SBA loan and an alternative consolidation term loan.

These are likely your two best options when looking to consolidate your debt.

However, it’s an important skill to manage if you find yourself struggling with expensive debt, and checking your score is the first step.

As a small business owner, your personal financial health is just as important as your business’s financial health.

In that case you would want to wait for three months of positive revenue trends before applying for a consolidation loan in order to increase your chances of approval.” In other words, unless you’re consolidating loans you took out for expediency’s sake, you should consolidate your business debt when you’re a better applicant for a loan than you used to be. Here are 5 signs it’s a good time to consolidate your business debt: If your personal credit score has significantly improved since you last borrowed money, then now might be a good time to consolidate your business debt.

An improved credit score is an important qualification for lower interest rates and longer repayment terms.

If you’re looking to consolidate a small amount of debt (under K), then business credit cards can be a great option.

They’re typically much easier to get, and faster to apply for than either term loans or SBA loans.

Here are some situations that can improve your ability to get funded for a consolidation loan: Any time your business’s revenue or profitability has increased for 3 consecutive months, it may be a good time to consider consolidating your business debt.

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