Buy Second Hand Items To conserve your cash, and prepare for the tough times ahead, buy good-quality second-hand items, instead of splurging on high-priced items, which are sure to keep you sinking in a sea of debt. To stay afloat during tough financial times, keep your sights focused on reducing, as well as eliminating, your debt. As the credit experts often say, it takes time to repair your credit score. Myth No. 3 Closing Old Accounts Helps Boost Your Credit Report This myth s nothing but a common delusion. The truth is that closing old accounts won t affect your credit score, but opening these old accounts will surely hurt your score. Every business entity that borrows will generally have a business credit profile, from which the business credit score is taken from. While a number of firms track business profiles, the main business profile tracker is the Paydex system, which works like the FICO score for personal credit score. Why Monitoring The Credit Report Is Important For Small Business Owners One of the most important aspects that aspiring business owners needs to do, is monitor their credit report. Ensure that you pay your library fines or parking tickets on time, because you won't know when they send these bills to the collection agencies. While late credit card payments, or mounting medical bills and unpaid parking tickets may seem like small bumps on the credit highway, these actually help to slowly mangle your credit rating, and may significantly alter your plans of buying a new home, getting a new car, or paying for your child's college tuition. Insurance premiums for people who've experienced bankruptcy are also more costly than for people who have stable financial records. A person who's experienced bankruptcy will also be classified as a high-risk customer, hence the rejection of his or her loan application. Before you file for bankruptcy, remember that bankruptcy is not an easy way out of your financial mess, because it will have serious implications on your credit record, and will also seriously hamper your business dealings with other people. In the United States, there are three major credit reporting agencies, where most creditors submit their client s payment history and personal information. The information submitted by your creditors to these credit reporting bureaus include date of account opening, type of accounts, payment history for each account, late payments, unpaid child support, overdrawn checks, or any foreclosures, suits, wage attachments, liens and bankruptcies that are derived from federal and state agencies.