Personal Credit 101

Each time you apply for new credit, it can generate a hard inquiry. And while one or two isn’t a big deal, too many in a short time can raise red flags.

Up next on our personal credit series... Number of accounts! Your credit score takes into account how many open accounts you have—but it’s not just about quantity. Lenders want to see that you can responsibly manage multiple accounts

Writing a business blog without discussing personal credit and the components that comprise your score feels like teaching someone to ride a bike without wheels. In my career in business finance I can't count the number of times a few tweaks to a client's personal credit score could have boosted the overall appeal of a request to either push it from a decline to an approval, or a good approval to a great approval.

In the lending world, we often start talking about credit after it’s already become an obstacle. But building a strong credit profile takes time—and that includes the age of your accounts. A good credit score boils down to good habits, disciplined budgeting, thoughtful forecasting, and consistent monitoring.