Smart Borrowing 101: Turn Credit Into a Business Growth Tool
Running your own beauty business is empowering—but it also means managing a lot behind the chair. From client schedules to product orders and finances, it’s easy to feel stretched thin. That’s why understanding how to borrow wisely can make all the difference between financial stress and sustainable success.
At Qnity, we believe clarity creates confidence—and that includes knowing how to make your money work for you.
Borrowing Isn’t Free
Here’s the truth: every time you borrow money—whether it’s through a loan or a credit card—you’re not just repaying the amount you borrowed. You’re also paying for the privilege to borrow, and that cost is called interest.
Let’s say you charge $5,000 in business expenses to a credit card with a 24% interest rate and only make the minimum payment. Over time, that $5,000 could cost you over $10,000—that’s double the cost, just in interest.
That’s why every loan and every swipe needs a plan. Borrowing can help you grow your business—but without strategy, it can hold you back.
Confidence Comes from Clarity
Your credit score is your financial reputation. It determines whether you’re approved for credit, how much you can borrow, and how much it will cost you.
Here’s the score breakdown:
740+ → Very Good to Excellent
670–739 → Good
580–669 → Fair
Below 580 → Poor
The higher your score, the lower your interest rates—and the more money you save.
Know What Shapes Your Score
Your credit score is made up of five main factors:
Payment History (35%) – Pay on time. Every time.
Credit Utilization (30%) – Use less than 30% of your available credit.
Length of Credit History (15%) – Older accounts help your score—don’t close them too soon.
New Credit (10%) – Too many applications in a short time is a red flag.
Credit Mix (10%) – A variety of credit types (when managed well) can be beneficial.
Small Habits. Big Impact.
Want to improve your credit score? Start here:
Pay every bill on time. Use autopay or reminders to stay consistent.
Keep balances low. Under 30% of your limit is ideal.
Check your credit report for errors. Visit AnnualCreditReport.com for your free annual report.
A few intentional habits can protect your score—and your business.
Five Rules for Smart Borrowing
Used strategically, credit can be a powerful business tool. Follow these five Qnity-approved rules to borrow smarter:
Use a separate business card to stay organized.
Pay your balance in full each month to avoid interest.
Keep usage under 30% of your limit.
Review charges weekly to stay aware.
Only charge necessities that move your business forward.
When you borrow with clarity, you don’t just build credit—you build confidence.
Learn More with Money SOLO by Qnity
Smart borrowing is one piece of your financial puzzle. If you’re ready to learn more about managing your money, growing your income, and making informed business decisions, explore Money SOLO by Qnity—the ultimate resource for beauty solopreneurs.
Whether you start with the Free Version or join the Premium Membership for deeper guidance, Money SOLO gives you the tools and confidence to make your business work for you.
→ Join the Money SOLO movement today and borrow smarter, grow stronger, and thrive with clarity.
