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. Having to many accounts also does damage to your credit score, because your score is usually affected by the difference between the available credit and the credit that s being used. Here are some facts about credit score monitoring and starting a new business. What's A Business Credit 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. During the past five years, more and more people have filed for bankruptcy, either because of the lingering recession, or because of personal financial blunders. While filing for bankruptcy may help an individual get a fresh start, it also has its share of long-term negative effects, especially on their credit score. Creditors are in business because they earn a profit from their lending services, and if you don t pay your debts, the creditor will also feel the pinch, and his bottom line gets hurt as well. It would be better if you sit down and negotiate with your creditors, since most of them are willing to understand your difficult financial condition, and may be more than willing to offer an easy way out of your financial mess. Settling With Former Creditors For A Lower Amount Whenever a person settles his or her former debt with a former creditor at a much lesser amount, this actually does more damage to your credit score. Because you ve settled with your former creditor for an amount less than what you actually owe them, the creditor eventually reports the remaining balance which you weren t able to pay, to the credit reporting agencies, and this will get noted in your credit report as a deficiency balance . Building Your Business Credit Profile: 5 Top Tips Each and every business entity today, whether small, medium or large, needs some credit to start, or maintain and expand their businesses. In order for your business to build a steady business credit profile, you need to employ a number of steps to ensure that your enterprise has a fresh connection with various established lenders and creditors.