Does having bad credit stop investors?

My credit is wrecked, partly because of a bad divorce, partly because I need someone who can pay bills for me. I don’t owe money, I’m just always late, and have stupid things like $5 from a storage fee. Because I have never purchased anything that’s over 10k, I never had a need for credit. I paid for school myself, got plenty of scholarships and  even muscled my way to pay over 100k for a masters executive program in Europe.

I’m great at what I do, have a wonderful reputation and a great network, so workwise I’ve been quite succesful and recognized for it. Now I have several people interested in a potential start up and frankly I’m terrified they’ll find out my credit is so bad. I’m on the way to cleaning it up, but it will take a long time. Advice? Do investors look into your credit  as part of their due diligence? I’ll be so mortified. 

  • If you’re raising money from Angels, their due diligence will never go that deep. At least that’s been my experience.

    • yeah not sure this is ever a problem, just don’t let on. Angels won’t look and if you can raise money from VCs they only give a shit about the business and metrics, so if you’re going up and to the right why would they ever care

  • I’m glad your credit is bad and you’re succeeding. I have a disdain for the credit score industry. They were the reason for the last financial meltdown. Companies schemed with credit agencies to get people huge unaffordable mortgages simply because they had a great credit score (paid their phone bills on time), and gotten shitty securities marked “A” just because they’re backed by homes which “never go down”.

    FICO is shit and I’m glad you never needed to rely on them. I never care about my score either because I principally disagree with the system.

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