Tag Archives: small business credit score

The Upside to Having Good Commercial Credit

Having good business credit is crucial in today’s world. It is almost impossible to get a loan with bad business credit cards and potential employers and landlords can pull and look at your credit. If you have made credit mistakes in the past, you can get past them and start to work on fixing your credit.

Use online banking to automatically submit payments to creditors each month. If you’re trying to repair your business credit, missing payments is going to undermine your efforts. When you set up an automatic payment schedule, you are ensuring that all payments are paid on time. Most banks can do this for you in a few clicks, but if yours doesn’t, there is software that you can install to do it yourself.

Repairing your credit file can be difficult if you are opening new accounts or having your credit polled by creditors. Improvements to your credit rating take time, however, having new creditors check your standing will have an immediate impact on your rating. Avoid new accounts or checks to your history while you are improving your history.

Limit yourself to 3 open credit card accounts. Too much credit can make you seem greedy and also scare off lenders with how much you could potentially spend in a short period of time. They will want to see that you have several accounts in good standing, but too much of a good thing, will become a negative thing.

There exist several non-profit agencies that can help you repair your business credit. Instead of reducing the amount you owe (which gets reported negatively) you can work with these organizations who will liaise with the debt collectors to reduce the interest rate, which in effect reduces the amount owed.

An important tip to consider when working to repair your business credit is to sign up for a credit monitoring program. This is important because for a usually low cost you can keep track of any changes to your account as well as be the first to know if there are any unauthorized activities.

If you are looking for professional help in repairing your commercial credit, how can you determine if a company offering these services is legitimate or not? If a company asks you to pay for their help in repairing your credit before they provide any services, do not enlist their services. The Credit Restoration Organizations Act forbids companies from requiring payment until they have fulfilled the services which they have promised.

When trying to repair your business credit, it is important to know you are entitled to a no-cost credit report from each of the three U.S. consumer reporting companies. Annually, Equifax, Experian, and TransUnion are legally required to give you a complimentary copy of your credit report, if you request one. Each of these three companies has a website, a mailing address, and a toll-free telephone number which can be used to ask for a free annual report.

If you are not having any luck working directly with the credit bureau on correcting your report, even after months of trying, you should hire a credit score improvement company. These businesses specialize in fixing all types of reporting mistakes and they will get the job done quickly and without hassle, and your credit will improve.

Increase your credit score. A lender will base how much you can borrow on a number of factors, with the most important being your credit score. The interest rate is tied to your business credit score and in order to get the best rate, you need a score of at least 720. Unfortunately, if your credit score is below 620, you may not qualify for any type of mortgage. Before you apply for a mortgage, try to increase your credit score. You can do this by making timely payments on any outstanding bills.

You can fix your business credit. If you will follow our proven tips, you will see improvements that will help to raise your score to a more acceptable level. Everyone is looking at your credit report, so it needs to be something you are proud of. Good credit is a great asset.