Are you an established business owner? Maybe you are just a new business owner trying to build a solid business credit history.
The good news is that there are many ways to improve your overall business credit profile.
The following tips can help you improve your business credit profile.
Apply for your own business credit card.
When you apply for a business credit card and use it regularly, you can begin building your credit history. Since it is easier to get a business credit card than it is to get approved for a business loan, this is what many business owners tend to do. Your business credit card can actually help you build your business credit rating which will help you apply for a loan when the time comes.
Maintaining high personal credit scores.
Having good personal credit standing is extremely important. Whenever you apply for a business line of credit or a loan for your business, the creditor will evaluate your personal credit rating as well as your business credit history. This is why having a personal high credit score is important.
Pay your bills on time.
Just like building personal credit, prompt payment of your business credit card should also be done. Future creditors will see that you can handle your credit card debt responsibly. This proves that you are trustworthy and regularly pays on time.
Make sure your business credit profile is in order.
You should get in the habit of regularly checking your business credit report. Check all of your transactions to make sure that the information is accurate. Sending a letter to Dun and Bradstreet, or any other business credit tracker, to get your current credit information can also help you stay on track.
Be sure that all relevant credit activities are recorded properly.
Once you are officially registered with the business credit tracker, it is time to apply for business credit lines and other forms of credit. Remember that business credit bureaus are not consumer credit reporting agencies. This is very important to understand. Keep in mind that many lending companies, as well as business-to-business vendors, may not provide a credit reporting service to the business credit bureaus. If your goal is to build a positive business credit history, all of your credit activities must be reported to a business credit tracker so they will be put on official record.
You must register your business with a business credit tracker.
Dun & Bradstreet (D&B) is the leading business credit tracker in the United States. You can register for a D&B number online. Once the registration is complete, your D&B number will be sent to you in 30 days or less.
By following these tips on how to improve your business credit profile, you should be able to avoid excessive charges, and maintain your credit rating. As long as you keep track of your monthly expenses and pay your bills, your credit rating should improve in no time!
The website BadCreditResources.com offers resources that specialize in providing Bad Credit Credit Cards. Also check other offer for Loans For Bad Credit.
I’m trying to established credit for my new business, but I can see the process is pretty much the same, so thanks!
Hi J Klein,
You’re welcome! I’m glad that you understood the process of how to establish credit for your new business. Just remember in to have good business credit, you need to make sure your activity is being tracked by a business credit agency like Dun and Bradstreet or Experian business credit. If your creditors are not automatically updating your credit profile you can open an account with these companies and do it yourself!
Good luck!
Shelly