You're going to have to fix your credit

If you want to start a business, the first step is to fix your personal credit. You will need a plan because your credit score won't change if you don't add the proper type of debt to your records. There are a number of services, like Experian Boost, that can help. There are however, many things you can do to start the process.

The good news about an extremely low credit score is that it has far more room to grow than it does to fall.

If you begin to pay on time and chip away at your credit card balances, your score will almost certainly rise.

And the farther your missteps fade into the past, the less impact they will have.

The two things that have the greatest impact on your credit score are:

• Whether or not you pay on time.

• The amount of credit you use, as a percentage of your credit limits.

Paying on time, every time, should be your first priority. Nothing matters more.

Other things you can do to raise your credit score:

• Check your credit reports for errors that may be hurting your score. You are entitled to a free annual credit report from each of the three major credit bureaus. And you stay abreast of any changes with free credit report information that updates every two weeks from NerdWallet.

• Keep open any credit accounts that you still have. It’s tempting to close old cards once you’ve paid them off, but that can hurt your credit score: It can reduce your overall available credit, and it shortens your average age of accounts, both of which are factors in your score.

• Consider getting a credit-builder loan and/or secured credit card to help build your credit if you do not have open credit accounts. Pay on time and use credit lightly.

Time and patience are the best cures for any poor credit score — combined with responsible credit habits.

Nothing is forever, not even bad credit. While a bad credit situation may seem hopeless, good habits practiced consistently will heal even the most broken of credit scores.

Once you have your personal credit in order, I can show you how to build credit for your business. Subscribe with me to get my fool-proof guide for obtaining business credit. Its free.