Just like your personal credit score, maintaining the health of your business credit score also matters. A good business credit score allows your potential creditors to assess how much of a credit risk your business can pose. Building a strong business credit score is a feat that takes time and smart moves.
A good business credit score for a big business means a better access to loans, lesser interest rates and less costly insurance premiums. For smaller businesses, it means getting more favorable terms of payment with your lenders and vendors and allowing you to get better interest rates from banks.
Business credit scores typically range from 0 to 100. The higher the score, the less risky your business’s payments are. If you’re looking to improve or build your credit score, here are a few tips that may be of help:
Keep Business and Personal Finances Separate
This is the single most important way to making a strong business credit score. Make sure you open a business bank account, separate from your personal bank account. Try to find a bank that offers allows you as much flexibility as possible as a business owner.
Get a Business Credit Card
A credit score basically represents how good your payment history is. Just like your personal credit score, the best way to maintain your business credit score is by borrowing money and making timely payments. Getting a business credit card can entitle you to bonuses and reward points if you choose a credit card that’s right for your business.
Choose Your Vendors Carefully
Did you know that one of the best ways to build a strong business credit score is by choosing vendors who can vouch for and report a good payment history with your business? Yet, only a small fraction of suppliers report these numbers to the relevant credit bureaus and agencies.
Make sure to ask your vendors if they report to credit agencies. If your vendors do not report to credit agencies, make a request that they do so since this reporting can be done without any additional costs to their business.
Maintain a Good Credit Utilization
A lower credit utilization by your business is an indicator to your creditors that your business is doing well financially. So, the lower your credit utilization is, the better it reflects on your credit score.
Dispute Errors on Your Business Credit Report
Although each bureau has a different procedure for fixing errors on your credit reports, disputing inaccurate negative information on your business credit report is an effective way to improving and maintaining a good credit score.
KeyPoint is a provider of quick credit repair services in Fremont that caters to clients looking to repair personal as well as business credit scores. Having been in the industry for almost a decade, KeyPoint uses effective strategies to help their clients restore their business credit scores quickly.
For more details and information, get in touch with them at 1-800-745-7400 or sign up for a free consultation here.