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5 Hacks to Get a High Business Credit Score

Janet Gershen-Siegel
August 4, 2018
Hacks To Get A High Business Credit Score Credit Suite

We Know Hacks to Get a High Business Credit Score

Hacks to Get a High Business Credit Score Credit SuiteUsing hacks to get a high business credit score means that your company gets opportunities you never felt you would. You can get new equipment, bid on buildings, and deal with the company payroll. And this is even when times are a bit lean.

This is especially helpful in holiday businesses. This is because you can go for calendar months with only nominal sales.

Given this, you should really work on building your company credit. Improve and maintain your scores and you will have these opportunities. Do not, and either you do not get these chances, or they will set you back you a lot more. And no entrepreneur wants that.

You ought to recognize what affects your business credit before you can make it better. Here are five hacks to get a high business credit score.

Get our hacks to get a high business credit score and get and stay ahead of everyone else.

Discover our Get Business Credit guide, with everything you need to know about building credit for your business.

Hacks to Get a High Business Credit Score: 5. Credit History Length Matters

This is essentially the length of time your firm has been working with company credit. Certainly newer companies will have brief credit histories. While there is not so much you can specifically do about that, do not panic.

Credit reporting agencies will also look at personal credit score and your personal history of payments. If a personal credit is good, and in particular if you have a fairly lengthy credit history, then your individual credit can come to the rescue of your company.

Normally the opposite is also true. If your personal credit history is poor, then it will have an effect on your corporate credit scores until your company and personal credit can be split.

Details

To begin your business credit profile properly, you ought to get approval for vendor accounts that report to the business credit reporting bureaus. Once that’s done, you can then use the credit, repay what you used, and the account is reported to Dun & Bradstreet, Experian, or Equifax.

Hacks to Get a High Business Credit Score: 4. Your Payment History is Important

Tardy monthly payments will influence your company credit score for a good seven years. If you pay your small business debts off, as speedily and as fully as possible, then you can make a very real difference when it involves your credit scores.

See to it that to pay on schedule and you will experience the rewards of punctuality.

Individual credit scores rely on payments but also other elements like credit use percentages. But for corporate credit, the scores really just hinge on if a business pays its debts timely.

Hacks to Get a High Business Credit Score: 3. Your Personal Credit Can Have a Bearing on Your Corporate Credit

Are you having a bad business year? Then it could land on your consumer credit score. And just in case your company has not been in existence for too long, it will directly affect your business credit. However, you can unlink both by taking measures to uncouple them. Incorporating is vital.

Say, if you get credit cards exclusively for your firm, or you open up business checking accounts and various other bank accounts, then the CRAs will begin to treat your individual and corporate credit on an individual basis.

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A company will also need a bank account devoted only to it, and it must have every one of the licenses required for operating. These licenses all must be in the exact, accurate name of the corporation, with the same small business address and telephone numbers.

Keep in mind that this means not just state licenses, but possibly also city or even county licenses.

You can also take care of your company’s invoices with your small business credit card or checking account. And make sure it is the company’s full name on the bill and not your own.

Discover our Get Business Credit guide, with everything you need to know about building credit for your business.

Hacks to Get a High Business Credit Score: 2. Do Not Allow Your Credit Utilization Rate to Hurt You

Credit utilization rate is the amount on credit, and then divided by total available credit. Lenders ordinarily do not like to see this exceed 30%. So for every $100 in credit, do not borrow on in excess of $30 of that.

If this percent is increasing, you’ll have to spend down and repay your debts before borrowing more. Credit Utilization is a personal credit issue. But since Experian uses personal credit for its scoring (in part), improving your FICO score will help.

Hacks to Get a High Business Credit Score: 1. The Credit Reporting Bureaus Can Get it Wrong

Just like every organization out there, credit reporting bureaus like Equifax and Experian are only as good as their records. If your company’s name resembles another’s, or your name is a lot like another company owner’s, there could be some mistakes.

So keep track of those reports, and your small business report at Dun & Bradstreet, PAYDEX.

Stay on top of these reports and challenge charges with records and transparent communications.

TransUnion

And while you’re at it, monitor the credit reporting agency which solely handles consumer and not business credit, TransUnion.

Discover our Get Business Credit guide, with everything you need to know about building credit for your business.

Hacks to Get a High Business Credit Score: Bonus: Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and fix any errors as soon as possible. Get in the practice of checking credit reports and digging into the particulars, and not just the scores.

We can help you monitor business credit at Experian, Equifax, and D&B for a lot less than it would cost you at the CRAs.

Disputing Errors

What’s all this monitoring for? Why, it’s to dispute any errors in your records, of course. Errors in your credit report(s) can be fixed. But the CRAs normally want you to dispute in a particular way.

Get your small business’s PAYDEX report at: https://www.dnb.com/about-us/our-data.html.

And you can get your company’s Experian report at: https://www.businesscreditfacts.com/pdp.aspx?pg=SearchForm.

In addition, get your Equifax business credit report at: https://www.equifax.com/business/credit-information.

Dispute Details

Disputing credit report errors normally means you specifically spell out any charges you contest.

More Dispute Details

Dispute your or your corporation’s Equifax report by following the instructions here: https://www.equifax.com/small-business-faqs/#Dispute-FAQs.

You can dispute errors on your or your company’s Experian report by following the instructions here: https://www.experian.com/small-business/business-credit-information.

Dun & Bradstreet would rather that you work directly with their Customer Service Department. So D&B’s PAYDEX Customer Service phone number is here: https://www.dandb.com/glossary/paydex/.

Smartly Using Credit

Always use credit sensibly! Don’t borrow more than what you can pay off. Track balances and deadlines for payments. Paying on schedule and in full will do more to elevate business credit scores than just about anything else.

Growing small business credit pays. Excellent business credit scores help a corporation get loans. Your lending institution knows the corporation can pay its debts. They know the small business is for real. The small business’s EIN connects to high scores, and lenders won’t feel the need to ask for a personal guarantee.

Business credit is an asset which can help your corporation for years to come. Learn more here and get started toward establishing corporate credit.

5 Hacks to Get a High Business Credit Score: Takeaways

Once you learn what affects your small business credit score, you are that much closer to creating better corporate credit. These 5 hacks to get a high business credit score should help.

Learn more here and get started with 5 hacks to get a high business credit score. It’s attached to your company’s EIN and not your SSN.

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