subject: Tips on Improving your Business Credit Score [print this page] Tips on Improving your Business Credit Score
Money is very necessary when it comes to opening your own business or maintaining the business that you already have. Unfortunately, some business owners have bad credit. This makes getting a business loan very difficult. In order for a business to improve their credit score there are steps and considerations that need to be taken.
First, as a business owner with bad credit, you must take the time to continuously check your credit report. This will allow you to keep an open eye on any errors that might take place in your report. Statistics show that 70 percent of credit reports have errors that will drastically change your credit. It is important that once you find a mistake that you bring it to the attention of your credit agency. Also, make sure that you remove all old and closed accounts and make your supplier visible on your report.
Make sure that you pay your invoices on time. This is very important because it establishes trust between yourself/business and your lenders. It is even a greater benefit to yourself and your business if you pay off your invoices early. If you do this regularly you can get your supplier to mention this to your reporting agency which will give you the credit that you deserve and will further prove that you have the ability to manage your finances well and responsibly.
Another important way to improve your business's credit is to avoid maxing out on your credit limit. Keep your debt to a minimum by keeping your credit card balances low. Also, don't close unused accounts because having zero balance has a strong possibility of improving your score. Furthermore, don't open new accounts as a way to move your debt from one account to another. That will only lower your score.
These few tips should be taken in consideration when trying to improve your business's credit score. Good credit score allows for your company to be considered as a good candidate for the business loans that you will need in the future. Remember, business loans are important means of getting the money necessary to maintain your business.
