By making sure that their credit report is in stable condition, aspiring business owners can increase their chances of receiving business loans which offer flexible interest rates. Every person is entitled to a free credit report each year, and a good place to start checking on your credit rating is by going to the three major credit bureaus like Experian, Equifax and TransUnion. When evaluating this section, find out if you see any clues about how your company uses credit, and find out whether your company' has a number of assets put up as collateral on existing loans, or if your business has a large number of relationships with other business, to determine whether your business may be overextended. However, the big three are not immune to errors and major flaws, and according to credit experts, these three agencies incur error rates ranging from 20 to 30 percent, although some of the errors may be as simple as reporting the wrong month of a delinquent account. Nevertheless, any simple credit report errors may still have a damaging on the person s credit score, which can result in the individual getting rejected for a much-needed credit line. Aside from alerting you of any fraudulent activity or inconsistencies, a credit monitoring service can also help you effectively manage your credit. The Downsides of A Credit Monitoring Service - According to credit experts, it s quite impossible for each company to effectively monitor each of their client s credit report on an hourly basis. Next, don't open any extra credit card accounts, because by having an extra credit card, or by canceling the other one, you can do major damage to your credit history. Also ensure that you don't transfer your balance from a card that offers high interest, to a card that offers a lower interest rate. Pay-Off A Sizable Amount of Your Current Debts In order to build a good credit score, pay-off a sizable portion of your current debt load, since the more available credit you have, the more will your credit rating improve. According to a recent survey, half of Americans don t exactly know how their credit scores are derived, or what factors are used to compute those three vital numbers. Here are five common myths about credit scores. Myth No. 1 The Major Credit Bureaus Use Different Formulas In Computing A Credit Score This is one of the most common myths about credit scores.