Tax time and I'm thinking financials

This happens to me every year about this time - I put off doing my taxes until the last minute (hey it's MARCH already, it IS the last minute!). Pretty soon I'm flustered, trying to get a grasp on my financial picture as I pull together all those W-2's, I-9's, and whatever other obscure forms I need to get things in gear. And every year I realize just how badly starting my own business impacted my credit score.

I suppose it's not unusual for people who decide to start a small business - a few small credit card advances turned into a larger debt consolidation. Then a couple large clients defaulted on their account and suddenly I can't pay my bills - hmm, guess I'll try to get some sort of loan. Before I really knew it my credit score was in the gutter. And I'll probably be digging out for quite a while!

The most important thing is to be armed with as much knowledge as you can get BEFORE you try to start a business. Think before you open yet another credit line. Remember that payments aren't the ONLY thing which affects your score - even a simple inquiry by a bank can ding your score a few more points, even if you don't apply for the loan! And don't fill your credit card - make sure to keep it below 50% of the approved balance if you can. The irony is that my parents, who have quite a bit more money than I do, probably don't have any better a credit score. Why? Because they don't need credit cards! They pay everything in cash, and have even paid off their house and cars. Hopefully things will begin to get better soon, but until then I'm just going to file those taxes and keep a close eye on my credit score :)