Can Bad Credit Be The Death of a Good Web Site?
May 5th, 2007 | by ScottIt appears that you're new here, if you like what you read, please subscribe to the news feed or sign up for the Leap eTips news and updates email list. Thank you for visiting :)
I’ve seen it happen. Almost overnight a web site suddenly becomes more popular than the elated owner ever expected. Time to break out the Champagne, right?
Wrong. Because the site owner didn’t anticipate this sudden burst of popularity he didn’t plan ahead for the fast expansion from shared hosting to dedicated servers or the need to hire a system administrator to maintain them… his lack of planning allowed his success to lead to his failure.
That’s a true story, though I won’t embarrass my good friend who experienced it by naming him or the site. But I thought the lessons he learned would be of benefit to some readers here.
Had my friend been on the ball, he may have been able to recover from his sudden problem of popularity by using credit to expand his resources to handle the new demands. Unfortunately, he had a bad credit rating which blocked his access to the quick financing he needed and ultimately he had to close his site down.
I’m not saying anyone should let bad credit stand in the way of starting a web site or business. It doesn’t have to. But if you’re going to start a commercial venture, regardless of the scale, you have to be savvy with your money and credit.
Having good credit will not only allow you to finance growth if you need to, but will ensure you pay lower interest rates on that financing as well. Every dollar saved is one more dollar in your pocket. If you’re starting a web site business–even just a blog site that you hope to earn a little advertising revenue from–then you should definitely consider your credit rating to be as important to you as your personal checking account is.
If you have bad credit, and we’ve all experienced ups and downs that can leave us needing credit help, there are ways to improve it. You can’t make legitimate bills disappear, but often your credit report holds old and inaccurate information that lowers your score–and that can be addressed. Be careful though, I’ve heard that some people who try doing their own credit repair without thorough knowledge of the system have ended up making their scores worse.
My best advice, and it’s what I suggested to my friend, is to find a reputable credit repair service of professionals who know what they’re doing, and who will be your advocates in providing the credit help you need.
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