Late bill or loan payments generally cut as much as 100 points from your credit score, which reduces your chances of availing loans and other forms of credit. Do Not Co-Sign A Loan Co-signing for loans perhaps may be one of the dumbest moves you can ever make. If ever you re lured or tempted into helping a family member or friend get a loan, your act of kindness may actually do a lot of damage to your credit score. 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. 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. Remember that some of your late payments could come as a result of other financial issues, or a dispute with your supplier. Uniform Commercial Code (UCC) Filings Your company's UCC, or Uniform Commercial Code filing will give you important insights about any leases or liens you have in place. When evaluating this section, find out if you see any clues about how your company uses credit, and find out whether your company' has a number of assets put up as collateral on existing loans, or if your business has a large number of relationships with other business, to determine whether your business may be overextended. The 5 Basic Elements Of A Credit Report In modern times, people apply for various forms of credit, whether to pay for their home mortgage, college tuition, or buy a new car and more. Many people also make purchases with credits, and many people today even own more than one credit card. However, a person cannot simply wish to receive credit as they please, because they will need to apply for it, and most credit companies also take a closer look at a person s credit report, to see if they are truly credit-worthy, and know how to manage their finances well. Whenever a person who just filed for bankruptcy applies for mortgages and loans, it puts a heavy frown on the faces of creditors and lending institutions. Insurance premiums for people who've experienced bankruptcy are also more costly than for people who have stable financial records. A person who's experienced bankruptcy will also be classified as a high-risk customer, hence the rejection of his or her loan application.