Nevada State Corporate Network, Inc.

 The stock market is rebounding. The government is investing approximately 200 billion dollars into nine of the country’s largest banks. We may soon see positive changes in the personal credit market. This is great news; however, now we must consider what it means to have and maintain good personal credit.

We buy everything from homes, to cars, to computers on credit. Good personal credit allows for a better life style, no doubt. Poor personal credit can stop you from doing many things such as buying that new home, car, or computer. What some people do not know is that poor personal credit can also affect your ability to receive competitive insurance rates as well as your ability to secure a job.

Many employers will run a credit check before offering you a job. The logic being that by looking at your debt to income ratio or delinquent payments they can judge the likelihood of theft or embezzlement. While this may or may not be a rational course of action, it is being prevalently used.

What does this mean to you? It means that keeping your personal credit up-to-date and pristine is more important than ever before. What I frequently see are business owners who have started their businesses using their own personal credit. The heavy debt that is placed upon the business owner can be extremely difficult to manage.

Along with the management of that newly acquired debt, business owners must consider how they are going to pay these new bills: What if the business does not do as well as expected the first year? What if I have to find a new job? What about any unexpected personal expenses? All of these questions and more need to be addressed when you are using your personal credit to build a business.

The best solution to all of these questions is to not use your personal credit at all. Separate your business from your personal life and build credit on the business, itself. Using business credit to build your business will preserve your personal credit, all the while making use of the largest lending source in the world.