Improving your business credit score – Essential steps you need to follow

Due to the present economic condition of the United States, it is becoming more problematic to obtain credit. While talking about business credit scores, you need to know that they are established by a different numbering system rather then the personal credit score. Business credit score may negatively affect a businesses ability to obtain the suitable interest rate that is required when obtaining credit. With a poor credit score, you may find it difficult to get hold of the best deal. Many a times, there are several errors on your credit report which may leave a negative impact on your credit score. It is advisable that you try to increase your business credit score so that you may be able to obtain credit for your business.

Improving your business credit score – Steps to follow

Here are discussed some of the essential steps to improve your business credit score.

  • Assess business credit score and make necessary corrections – While thinking to increase your business credit score, you need to assess your business credit score and make the necessary corrections, if required. These errors may occur on a business credit report as they may occur on a personal credit report. They may affect your credit score to a great extent. The presence of the number of errors on your credit report may restrict the loan amount that you want to take out, the interest rate, the time period for repayment on a business loan.

  • Increase the credit dealings of your business – It may happen that you do not have any activity on a business credit report. This will lower down your credit score. The lenders as well as the business men would want to know if you have an ongoing ability to pay off your bills. Taking out small loans from time to time helps you maintain a good credit score.

  • Pay off the business bills on time – This is considered to be the main concern that should be reported for a business credit report. A credit score of 80 (ranging from 0 to 100) means that you pay down your bills on time. However, if you can pay off the outstanding bills ahead of the due date, it will help you raise your credit score, if you can do it constantly.

  • Improve bad credit score – If you want to improve bad credit score, you will have to take the necessary steps to pay off your outstanding debts. Reducing the balance on the business credit cards can have an immediate impact on your business credit rating. With a good credit score, you may request for a credit line and improve your credit since such an increase reduces the percentage of your available credit that is in use.

By following the above steps, you will be able to improve your business credit score.

By Andrew Jackson,financial counselor associated with Oak View Law Group, APC for over 4 years. He analyses people financial situation minutely and advises on different debt relief options available to people. He also helps people managing budget to keep an eye on their financial planning.

 

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Tuesday, 13 November 2018
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