Two Women With Their Small Business Start-up Cardoza Law CorporationCalifornia—the land of the start-up! The success of businesses like Apple, Google, and eBay inspires thousands of people to try their hand at starting their own business in the Golden State each year. These ambitious entrepreneurs all have two things in common: they believe they have the next great idea and they need money to do it. What they may not realize right away is that they will also need good credit to get their idea off the ground.

What Does Credit Have to Do With it?

According to the website Small Business Trends, 34 percent of new small businesses seek bank loans to fund their ventures. Half of these new businesses won’t make it to their fifth anniversary, and, of them, 30 percent fail because they run out of financing. Not to be a downer, but the reality is if you can’t take out a low-interest loan and continue to get financing as your business grows, the odds of success are slim. But what if your poor credit rating is not your fault? When it comes to starting a new business, it may not matter.

How Identity Theft Can Tank Your New Business

If you are the victim of identity theft and someone used your personal information to open credit cards, take out loans, or get medical treatment in your name, a record of that activity will appear on your credit report. You may not even be aware that you are a victim until you try to take out a loan and are denied. A lot of unpaid debt, an excessive number of credit cards, and other irresponsible activity on your credit report—even if it was caused by a credit identity thief—will tank your credit score and affect your small business dreams in multiple ways, including the following:


If you need to borrow money to get your business started or to inject cash into an established business, you could be limited to loans with high interest rates or denied outright.


If an identity thief has left a trail of bad deals and unpaid debt in your name, your reputation as a business owner and employer could suffer.

Vendor Contracts 

Most small businesses have to establish working relationships with various kinds of vendors, including internet and cell phone providers. These companies could deny you service—or require deposits and charge high rates—if your credit report is bad.

Insurance Rates 

If you need to work with an insurance provider, you will have a hard time negotiating good rates if you have a low credit score.

Get Your Credit Report Fixed Now

You may have already tried working with the credit reporting agencies (CRA) to fix the mess an identity thief made, but if you have been unsuccessful, contact the Cardoza Law Corporation for help. We won’t charge you a thing to contact the CRAs, and we may even find grounds to sue them for damages. Don’t let your dreams of owning your own business be crushed by identity theft. Contact my firm today to get your goals back on track.


Michael F. Cardoza, Esq.
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U.S. Marine & Consumer Financial Protection Attorney helping victims of ID theft and Credit Reporting errors.
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