How to Improve Your Business Credit Score
You’ve probably heard about the importance of maintaining a good personal credit score. With a good credit score, you can get a better rate on loans and credit cards and may even receive lower rates on other bills such as your car insurance. However, did you know that if you’re a business owner, in addition to keeping your personal credit score in good shape that your business also has a credit score that you have to keep in good standing? If your business doesn’t have a good score, it could impact your ability to get loans or good rates on credit cards if your business wants to grow or expand.
Follow these tips to help improve your overall credit score.
Watch Your Score
One of the most important things you can do for any credit score, whether it’s your personal or business one, is to monitor it regularly for any noticeable changes in the overall score. You may find that there are discrepancies on your report that are holding your business back from having a better score. If you see anything that doesn’t look right, be sure you dispute it. Having discrepancies removed can significantly boost your score.
Pay Bills on Time
When cash flow isn’t steady, it can be difficult to make your payments at the same time every month, which can be especially true if you run a business that has customer volume that ebbs and flows during specific times of the year. However, paying your bills on time is crucial to maintaining a good credit score. If cash flow isn’t an issue and you find that you simply forget to pay things because you’re too busy, you may want to consider setting up bills to autopay each month so you never have to worry about missing a payment and you keep your accounts in good standing.
Be Smart About Credit
Credit can be a great thing, especially if you make large purchases each month that you may not have the cash to pay for up front. However, if you aren’t careful with credit cards, you could run into issues when it comes time to pay them back, which can severely affect your credit. If you do use credit cards or lines of credit each month, be sure you pay them back in a timely manner to avoid late fees and dings to your credit.
Just like personal credit scores, you should take your business credit score seriously. These helpful tips can improve your business credit score and increase your chances of being able to secure loans in the future.