Check your Credit Report

Just a quick post today to let you know if you don't already, that you should definitely check your credit report before you make any appointments to meet with any type of lender for your new restaurant. This is a necessary step to getting a restaurant financed through anyone as they will want to make sure that you are current with your bills and pay on time. Start now to pay everything on time and learn how to get a free credit report.

You can get a free credit report every year by going to creditreport.gov. If you need more than one per year you will be charged a fee of $15.00 each time you request your report.

Once you get your credit report, let's take a look at what you want to check. Your lender will also get a copy of your report so, it's a great idea if you already know how it reads before meeting with the lender.

     Here's what to look for on your credit report and how to make changes if needed:


          ** Make sure your name and address are current and correct.

          ** Make sure that your current employer is listed correctly with the address and time of service.

          ** Look at the list of all your debtors. Are they accurate? Does it show your last payment made? Are there any late notices listed and are all those correct?

          ** Are all your balances owed correct? Most of your creditors will update all three credit reporting agencies but, occasionally one gets missed so do make sure to double check this information for yourself.

          ** Most of your financial information will stay on your credit report for at least 7 years and some (such as business information) or bankruptcy can stay for 10 years.

       
     To make any changes to your credit report, simply notify in writing each agency and give them:
          * Your full name and address
          * Phone number
          * Social security number
          * List any item that you feel is incorrect and request an update on the information
          * Add any notations on your credit report of why you were late on a certain bill, for example so that anyone looking at your credit report can see immediately there that you had an illness, were laid off briefly or whatever the reason is. What you're looking for in errors is something like a credit card that was paid off months ago and still is reflecting a balance. That should be adjusted.
           * Leave all your old and paid off debt on your report without asking for it to be removed such as old credit card bills, loans, mortgages. This information is useful to establishing your credit and is best left on for years.
          * Provide copies of paid off debt if possible to make it easier for the credit reporting agency to update your information although they will double check with your creditor so keep it honest!
          * Mail your updated credit report information to the correct agency, all three would be best and keep a copy for yourself. Your changes, if approved will be made on your report and the agencies will notify you when the process is complete. It could take up to three weeks before you hear about your credit report updates.

   I hope this information is helpful to you in realizing what you will need to do before getting a lender to assist you with getting a restaurant started. All of this background paperwork is necessary to help you have the best chance at starting a restaurant and we've been through it all too. You can do it!

   We'll discuss your business plan next!!

   Until we meet again, Cheers!