By Pam Ward, Branch Manager, Madison and Norridgework

Credit scores are being used these days for much more than determining whether or not to provide a line of credit or a mortgage. Landlords, mobile phone companies and even potential employers can use credit scores to determine if they want to do business with a particular individual or organization. Excellent credit scores are above 800, very good scores are 720-799, and good credit scores are 680-719. With that in mind, here are a few tips to improve and maintain a high credit score:

• Make loan payments on time and for the correct amount. Delinquencies have the largest impact on determining credit score.

• Avoid overextending your credit. Unsolicited credit cards that arrive by mail may be tempting to use, but they won't help your credit score.

• Never ignore overdue bills. If you encounter any problems repaying your debt, call your creditor to make repayment arrangements. If you tell them you are having difficulty, they may be flexible. Late payments stay on your credit report for 7 years.

• Be aware of what type of credit you have. Credit from financing companies can negatively affect your score but having a mix of credit including credit cards, equity lines, auto loans and mortgage is best.

• Keep your outstanding debt as low as you can. Continually extending your credit close to your limit is viewed poorly. Credit card balances should be maintained below 40% of total available credit.

• Limit your number of credit applications. When your credit report is looked at, or "hit," it is viewed as a bad thing. Not all hits are viewed negatively (such as those for monitoring of accounts, or prescreens), but most are.

Remember, credit is not built overnight. It's better to provide creditors with a longer historical time frame to review: a longer history of good credit is favored over a shorter period of good history. Following these steps as part of a sound personal finance plan will give you a higher score and may reduce the interest rates you'll pay on future credit.

Commercial Lending Team Members: (left to right) Jack Ducharme, Debbie Knox and Kurt Maynard.

By Skowhegan Savings Commercial Lending Team

At one time or another, everybody has a great idea they think could be a money maker. From turning Aunt Sally's perfect apple pie into a local bakery, or taking your photography skills to the next level and turning pro, there's a market for almost anything. The trick is turning that great idea into a successful business and most entrepreneurs need to obtain financing to get the new enterprise off the ground.

To increase the likelihood of getting a commercial business loan, there are two key pieces of information you'll need: a business plan and financial statement(s).

The first thing a loan officer will look for is a well-thought-out, practical business plan. The plan will outline what you want to accomplish with your new business and how you intend to accomplish it. It should be easy enough for a lay person to understand and include the business idea, your projected expenses and revenues, obstacles and opportunities. These estimates will provide you with a baseline to measure against and allow you to make adjustments to payroll, supplies, overhead expenses or other factors as you go along and keep you on the track to success. The plan should also include a contingency plan in case something doesn't go quite as you'd hoped.

Financial statements are also a necessary component of any commercial loan application. They usually include copies of the past three years of tax returns, information on your credit, income and expenses. Skowhegan Savings has a free electronic tool that allows prospective borrowers to enter data into a form that is then processed/formatted directly into a financial statement that can be used as part of the loan application.

Our commercial lending team is experienced in helping businesses of all sizes develop business plans, organize their financial statements and determine what kind of commercial loan will work best for each company. If you are thinking of starting or expanding a business, we can walk you through the steps and help get your new venture off on the right foot.