This week I am so proud to have a super duper credit expert join us to share her wisdom and expertise around this hotbed issue. Below Randi Tomchin of Northshore Advisory shares some great tips. Here is what Randi has to say:

“Credit has a huge impact on many areas of our lives, and Justine gives great advice during week two of the Financial Feng Shui Challenge – if your credit report is in need of some TLC, make that your challenge task this week.

Don’t forget, your credit report is reviewed when renting an apartment,  applying for a mortgage, credit cards, car loans, and many other events to it’s really important to keep it clear and tidy. For entrepreneurs, business credit can impact getting a line of credit or other financing, and can cause you to lose business without even knowing  it.  Here are some tips that will help you navigate FICO scores, as well as Dun & Bradstreet scores & indexes:


    1. If you buy your credit scores online make sure you purchase your FICO scores at www.myfico.com. These scores are the closest to what a mortgage banker views. When you purchase your credit at this site it does not hurt your scores. Always be up-to-date on the current status of your credit report and scores. If there are any problems or questions make sure to speak to a credit expert who can give you feedback and help.
    2. If you have poor credit due to delinquencies, make sure to get advice and expertise from an excellent credit repair company. The sooner they can help you the faster your chances are of having a successful closing.
    3. Keep your balances on credit cards low since balances over 10% of limits start to decrease scores. The closer the aggregate and individual account balances are to aggregate and individual limits, the more the score drops.
    4. Closing and opening credit can drop scores, so avoid these two actions unless told otherwise by your mortgage professional.
    5. Keep inquiries by third parties down to a minimum since they can impact your credit scores and wind up costing more in interest and fees.
    6. Do not co-sign for any credit unless you are in control of making the payments.
    7. For a lender to review your personal credit you must give your consent. But for business credit, anyone can pull a Dun & Bradstreet credit report on a business without consent.
    8. FICO scores will clearly show each creditor name and account number, where as Dun & Bradstreet trade lines do not reveal the name or account number of the creditor. If you have a problem with a delinquency posted on your D&B report it could be very difficult to find out which creditor posted the misinformation.
    9. FICO scores do not reveal an individual’s income or financial status on the credit reports. On the other hand, Dun & Bradstreet will report current financials if the information is public or if it has been provided by the company.

    Having excellent personal and business credit can deliver you a better quality of life and greater success for your business.

    Written by: Randi Tomchin

    need more help?

    Randi would be delighted to speak with you. She is a FICO Certified Professional with the North Shore Advisory, Inc.. You can reach her directly by emailing Randi @ northshoreadvisory.com or learn more about her here. For the record there is no affiliate relationship between North Shore Advisory, Randi, Justine and/or Good Cents Bookkeeping <3.