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Credit Score Self Employed

Benefits of Clean Credit for the Self-Employed

Self-employment gives you the ultimate freedom to pursue your passion whenever and wherever you want, and the total control over your earnings without worrying over how to get a bad credit rating removed.

Self-employment gives you the ultimate freedom to pursue your passion whenever and wherever you want, and the total control over your earnings without worrying over how to get a bad credit rating removed. A bad credit limits your borrowing options and it can also damage your reputation among partners and potential clients. That being said, here are the benefits of a clean credit and ways to achieve it:

You have total control of your time

Working from home means you can choose to work 24/7 or you can give yourself a schedule, just like a normal job. But, if you have bad credit you may be obligated to work long into the night to keep up with your bills.

Just because you have total control of your time, that doesn’t mean that you need to exhaust yourself already. If your problem is how to cover your debt repayments, here are some tips so you will not go overboard:

  1. Know how much you owe. It will give you a realistic basis for all your hard work. You can start by buying a DIY Clean Credit Repair kit. It has easy to follow instructions on how to request for your free credit file, and how to spot the negative listings that you can have removed. The step by step process of credit dispute and repair are clearly provided. Just follow it and you will surely have your credit score improved in no time.
  2. Increase your productivity. Avoid distractions when dealing your tasks at hand. Set a deadline for specific tasks. This will help you become ultra-productive because people, by nature, work well under pressure.

If you find yourself spending too much time on a particular task, find out the cause and do something about it. For example, you are spending a lot of time on making follow ups to your customers—why not set up an automatic order or payment reminder through email and mobile phones? It will simplify your task and prevent you from having lengthy conversations with your clients.

You can manage your money wisely

Just because all the money is coming to you for your disposal doesn’t mean that you can already overspend. Keep a transaction register to know how much money is coming in, and how much you are spending. It is always important to keep records so that you will know if your available balance enough to make repayments for debts, supplies and business-related purchases.

It’s not enough to look at your bank account information online. It will only show the current record of the money you can withdraw from your account. What you need to check are the transactions you have made like repayments for your credit card, car loan, mortgage and personal loans.

Aside from your personal transaction register, you can check your credit report for records of unpaid debts, defaults, liens and other negative entries that need your attention.  This will help you prioritize your spending.

The problem arises when you’re not paying your debts on time. It gets worse when you have no emergency fund for months when you are not making enough money to pay for your daily personal and business expenses. So, before you face those less-stellar months, make sure that you have set aside some money to handle your daily expenses as well as your taxes.

You can start with a budget that could help you pay your outstanding debt. You don’t have to pay them all at once. Create a strategy that will allow you to pay each of them gradually, starting with high-interest debts to low-interest ones. By doing so, you will be able to take charge of your financial future without fear that your creditors will run after you.

A proper budget can also help you make effective financial decisions to grow and expand your business.

It gives you time to learn new things

Self-employment is a fertile ground for constant learning and improvement. You always need to keep yourself updated with the latest trends and strategies that will make you valuable and relevant in the industry. That means using relevant technologies, studying short-term courses, attending seminars or reading information content to give yourself the best advantage in your field of work.

It boosts your confidence to be yourself

If you want to realize your full potential, it is important to create an environment that will nurture it. Self-employment is one of the best ways to do it. You set the mode for success. While working hard and developing skills can help you achieve your business goals, being confident of what you do, because you can do it, and you want to pursue it is a potent catalyst for success. But, if you want to light your fire in your life without sacrificing your time with your family and compromising your finances, achieving balance is important.

Do you want to have a clean credit and excellent credit score? Make an enquiry today!

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