Why Monitoring The Credit Report Is Important For Small Business Owners One of the most important aspects that aspiring business owners needs to do, is monitor their credit report. By making sure that their credit report is in stable condition, aspiring business owners can increase their chances of receiving business loans which offer flexible interest rates. By keeping your card s charge levels low and manageable, you re actually showing restraint and responsibility, and you re keeping your credit score high as well. Stick To Your Budgets The best way for steering clear of mounting credit card debt, is by drafting a budget that s consistent with spending within your budget. By immediately finding out any numerical or typographical errors, this allows you to quickly file disputes to correct any inaccuracies. Aside from alerting you of any fraudulent activity or inconsistencies, a credit monitoring service can also help you effectively manage your credit. The Downsides of A Credit Monitoring Service - According to credit experts, it s quite impossible for each company to effectively monitor each of their client s credit report on an hourly basis. The information submitted by your creditors to these credit reporting bureaus include date of account opening, type of accounts, payment history for each account, late payments, unpaid child support, overdrawn checks, or any foreclosures, suits, wage attachments, liens and bankruptcies that are derived from federal and state agencies. Bankruptcy Also Taints Your Financial History Apart from wrecking your credit score, bankruptcy also taints your long-term financial history, which will make things tough for you to do major transactions and business purchases. Availing a bank loan may be equally tough too, since most lenders will have second thoughts of offering their services to you, especially if they see your bankruptcy record. Never Do Loan Shopping Whenever you continually shop for loans, or submit to as many lenders within just two weeks, your credit score will surely suffer a major drop. Try to do a cluster of loan inquiries within a proper period of time, like one every two weeks, so that your credit score remains strong, and won't have to suffer major drops in credibility with lenders.