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Most people start a home business to make money, and it takes money to make money. Unless you have a source of capital for your home business (i.e. you are independently wealthy or have a solid investor), your credit score can affect your ability to borrow money to start up, run, or expand your home business. It can also affect the interest rates you pay on what you borrow. If you have no credit or a low credit score, you are higher risk for lenders and may end up paying more in interest.
To keep your credit score high and make it easier to finance your home business, there are a few simple rules. Pay your bills on time, and pay down credit cards or try to keep the balance low. Don't apply for every credit card out there. Get rid of the negatives on your credit report if you can, some will go away over time, or by checking for errors periodically and disputing any inaccuracies. Be sure to check all three major credit bureaus. It is a common myth that checking your credit score can lower it. If you are checking your own score through a reputable source, you can check as often as you like.
If you have a home business or are planning to start one, keep an eye on your credit score, and know what effects it. it can make a difference in your ability to finance your business and can save you a lot in interest rates.

Learn more about this author, Rachel Logterman.
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