How to Improve Your Business Credit Report
Chances are you know how important your credit score is. Your personal score can impact your ability to buy a car, rent an apartment or qualify for a loan. As a business owner, you likely have come to realize that your business credit score is just as important as your personal one. For your business, a good credit score can help you get good loans with low interest rates. A good score could even lead to lower insurance rates, which can help you save money each month.
Because this score can be so important, you need to know how to make it better and keep it where you want it. In order to improve a credit score, you need to actually have credit to your company’s name. Using a business credit card can help you build up your score. If you do get a credit card, be sure to make your payments on time and try to keep your balance below the halfway mark.
You can also improve your score by paying your bills on time. Whether you are paying your rent for the building or utility bills, making on-time payments can help increase your credit score. Using automatic payment plans is a great way to ensure you make all of your payments on time. If you do sign up for one of these plans, make sure you read about the different limitations. Some companies, for example, have you select a maximum amount you want to have paid automatically, so if your bill exceeds that amount you may have to make a manual payment.
Reviewing your business credit regularly can actually help you improve and maintain it. Sometimes the data on these reports is incorrect. The sooner you catch the problem the easier it will be to fix. You usually have to provide proof that the error is in fact an error, so be sure to keep good records.
It is OK to keep your numbers private. The only people who really need to know anything about your credit score is you and any loan officers you may work with. Keeping your credit information private can actually help you protect it. Fraudulent activity can take place if too many people know about your personal information. Keeping an eye on your credit score can help you make sure that no information has been stolen.
Your business credit score can play an integral role in the success of your company. If you are able to improve it and maintain it, you have a better chance of qualifying for loans when you need them.