In looking at whether a credit score can affect your home business or not, I want to first go into what a credit score, also known as your FICO score, is and how it is established. This information can be found directly from the credit education section of www.myfico.com:

1) Payment History: 35%
2) Amounts Owed: 30%
3) Length of Credit History: 15%
4) New Credit: 10%
5) Types of credit issued: 10%

Your credit score has nothing to do with your income, your education, your ambition, or the viability of your business. It has everything to do with whether you want to run your business on credit or not. In general, the message in society is you need credit get ahead, but I want to at least offer an alternative perspective.

There are people out there today with fantastic credit scores, but their businesses are floundering because they're barely keeping up with interest payments on all the loans they have out. It's one of the reasons a great percentage of businesses fail before they even have a chance to turn a profit. You're literally trying to keep more than one business afloat-your own and any banks you have notes from. This adds financial stress and can be a serious distraction from developing your business.

Personally, every long-term successful business owner I've ever met has ran his or her business on a cash basis or on very minimum amounts of credit. A few don't even have a FICO score because they haven't borrowed money on a personal or business basis in years. They made these decisions from the very beginning of their businesses, even before they became wealthy. This is what makes them unique from the general population and more successful financially.

If a person borrows money, they should ethically pay it back and on time. In that aspect, a credit score can say that you keep your word. Beyond that however, I believe it shouldn't have any bearing on your business. It is my opinion that patience, creativity, and a level-headed attitude can overcome any financial obstacle without the need to borrow. Other people may disagree, but I want to follow the examples of people who are winning in life based on what I've learned.

I hope this information has been helpful to you as well. Best wishes in your business!

Learn more about this author, Patricia Gilliam.
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