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How to Repair Damaged Business Credit

Published By Janet Gershen-Siegel at October 24th, 2014

Repair Your Damaged Business Credit

Fixing damaged business credit should be a top priority for you, the business owner. Business credit repair is a great way how to improve credit score for your company.

Many business owners think they have items reporting on their business credit reports that really aren’t reporting. But over 90% of trade vendors don’t report to the business credit reporting agencies. So chances are good that the negative information you think is on your report might not even be there. But you should still know how to repair your damaged business credit.

To Start Credit Repair, Obtain Business Credit Reports

Know what’s on your business credit you should obtain business credit reports from the main business credit reporting agencies.

Business Credit reports are offered by:

  • Experian
  • Dun & Bradstreet
  • Equifax

You will first want to get a copy of your business credit reports to see what is being reported. So saving damaged business credit starts here.

The Fair Credit Reporting Act: Does it Have Anything to do with Damaged Business Credit?

You might have already heard of the FCRA. The Fair Credit Reporting Act outlines consumer’s rights to dispute inaccurate information on their credit reports. But it’s essential to know that this law does NOT apply to business credit repair.

There are currently no laws which outline business owner’s rights regarding credit disputing. The FCRA also requires credit issuers to notify you of what bureaus they pulled your credit data from to determine your denial for financing. In the business credit world this is not the case, you rarely ever know the source pulled your business credit or which reporting agencies they pulled it with.

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Debt Validations and Damaged Business Credit

If you see accounts or details you don’t recognize or you feel are inaccurate, here’s what to do. You can request a debt validation for that account using a debt validation letter. A debt validation is where you solicit the creditor for verification of the account details they are reporting. They will typically send you back details of your account that they are reporting.  The FCRA and the fair debt collections practices act apply to consumer debts, not business debts. So you can send a debt validation letter. But the law does not require the creditor to respond to your dispute.

When sending a debt validation request, you must send your request to the creditor in writing. Also insure you dispute the debt with the credit reporting agencies if the creditor doesn’t respond to your request. If no response is received within 30 days of mailing the letter directly to the creditor, then you should then dispute the account with the business credit reporting agencies.

Monitor Your Business Credit for Business Credit Repair

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

We can help you monitor business credit at Experian and D&B for only $24/month. See: www.creditsuite.com/monitoring.

At D&B you can monitor at: www.dandb.com/credit-builder. At Experian, you can monitor your account at: www.smartbusinessreports.com/Landing/1217/. And at Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business. Experian and Equifax cost about $19.99; D&B ranges from $49.99 to $99.99.

Update Your Records

Update the relevant information if there are mistakes or the details is incomplete. At D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm. For Experian, go here: www.experian.com/small-business/business-credit-information.jsp. So for Equifax, go here: www.equifax.com/business/small-business.

repair damaged credit - damaged business credit

Dispute to Help Repair Damaged Business Credit

To dispute a debt with the business credit reporting agencies, first contact customer service with any of the three reporting agencies for billing disputes, challenging payments and outdated public filings that appear on your report.  When you dispute an item the business reporting agencies will have vendors re-verify payments and remove charges if the vendor cannot verify the information. Credit repair services might also be good for this.

The business credit reporting agencies can also help to clear up issues that have been settled or dismissed, yet still appear in your report.  They may ask you to send in documentation to verify a settlement or dismissal. The business credit reporting agency will then recheck the status of the public filing if you do not have documentation. If you are working with credit repair companies which know how to repair damaged credit, they should have experience with these kinds of requests.

The Ins and Outs of Disputes: Fix Damaged Credit

So, what’s all this monitoring for? It’s to dispute any problems in your records. Mistakes in your credit report(s) can be fixed. But the CRAs generally want you to dispute in a particular way.

Get your small business’s PAYDEX report at: www.dnb.com/about-us/our-data.html. Get your company’s Experian report at: www.businesscreditfacts.com/pdp.aspx?pg=SearchForm. And get your Equifax business credit report at: www.equifax.com/business/credit-information.

Repair Damaged Credit: Dispute Details

Disputing credit report errors commonly means you send a paper letter with duplicates of any proofs of payment with it. These are documents like receipts and cancelled checks. Never send the original copies. Always mail copies and retain the originals.

Fixing credit report errors also means you specifically detail any charges you dispute. Make your dispute letter as understandable as possible. Be specific about the issues with your report. Use certified mail so that you will have proof that you mailed in your dispute.

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

You can dispute inaccuracies on your or your small business’s Experian report by following the directions here: www.experian.com/small-business/business-credit-information.jsp.

And D&B’s PAYDEX Customer Service telephone number is here: www.dandb.com/glossary/paydex. D&B wants you to dispute by phone.

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Keep your business protected with our professional business credit monitoring.

Using iUpdate to Help Repair Damaged Business Credit

iUpdate… from Dun and Bradstreet provides US based Small Businesses and Non-publicly traded companies convenient access to D&B’s information on their business. Registered users can view, print, and submit updates to their D&B Business Information Report.

So many business owners don’t know that credit monitoring services for Dun and Bradstreet reports actually come to you from a private company known as D&B Credibility.

Repair Your Damaged Business Credit at Equifax Business

Equifax Business also has an online system for credit disputing. They provide this through their online credit monitoring platform in their member center under “Disputes”.  Keep in mind, the business credit reporting agencies may not be allowed to release the name of the person making the negative reference on your report.

Contacting Customer Service to Help Repair Your Damaged Business Credit

REMEMBER, you don’t have the same rights as you do with consumer credit reporting as there is no Fair Credit Reporting Act. However, you can contact customer service to discuss the item on your report as well as your options.

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Keep your business protected with our professional business credit monitoring.

Contact the Creditor to Help Repair Your Damaged Business Credit

If your debt validation and investigation don’t net you the deletion of the derogatory item, move to the next step. Now you need to contact the creditor. Find out from them what you must do to have the item removed from the business credit report. Usually, they will remove the account if you pay the outstanding debt.

Derogatory Items and Damaged Business Credit

There is one main reason for a derogatory item to be on your business credit report. So it is usually because the creditor feels there is an outstanding balance that you owe them. So they will typically remove the account if you pay the outstanding debt.  If you reach an agreement for deletion, get the agreement in writing. And insure they provide you a time frame of when they will correct the damage on your report.

Work With Vendors Which Report So Positive Payment Experiences Get On Your Business Credit Reports

Start with the vendor credit tier. It’s a great way how to repair bad credit fast.

First you should build trade lines that report. This is also called the vendor credit tier. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can begin to get credit in the retail and cash credit tiers.

These sorts of accounts have the tendency to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first of all, what is trade credit? These trade lines are credit issuers who will give you initial credit when you have none now. Terms are ordinarily Net 30, instead of revolving.

So, if you get approval for $1,000 in vendor credit and use all of it, you need to pay that money back in a set term, such as within 30 days on a Net 30 account.

Details

Net 30 accounts need to be paid in full within 30 days. 60 accounts have to be paid completely within 60 days. Compared to with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you made use of.

To launch your business credit profile properly, you ought to get approval for vendor accounts that report to the business credit reporting bureaus. When that’s done, you can then use the credit.

Then repay what you made use of. And the account is on report to Dun & Bradstreet, Experian, or Equifax. This the way how to build credit fast.

Vendor Credit Tier – It Helps

Not every vendor can help in the same way true starter credit can. These are merchants that will grant an approval with very little effort. You also need them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian. These vendors can help you build business credit in 30 days!

You want 5 to 8 of these to move onto the next step, which is the retail credit tier. But you may have to apply more than once to these vendors. So, this is to verify you are dependable and will pay punctually. Here are some stellar choices from us: https://www.creditsuite.com/blog/5-vendor-accounts-that-build-your-business-credit/

Accounts That Do Not Report

Non-Reporting Trade Accounts can also be helpful. While you do want trade accounts to report to a minimum of one of the CRAs, a trade account which does not report can also be of some worth.

You can always ask non-reporting accounts for trade references. Additionally credit accounts of any sort should help you to better even out business expenses, consequently making financial planning less complicated. These are companies like PayPal Credit, T-Mobile, and Best Buy.

More About How to Repair Damaged Credit Rating

You may be asking: what is a good way to repair damaged credit? By building more and more positive payment experiences, you get a terrific way how to repair damaged credit history.

You may also be asking: how to get a line of credit for my business? More business credit means you can eventually work out how to qualify for a business line of credit. You could get an unsecured business line of credit no doc. Improved business credit also means being eligible for the best credit card to have to repair damaged credit.

Having better business credit is an important part of how to apply for a business line of credit. Because you will likely need improved business credit for an online business line of credit. Raising your business credit scores and fixing problems is the best way how to establish a business line of credit.

Business Credit Scoring

Business credit scoring is based on how you pay your bills. If you pay the majority of reported accounts on time or early, you will have a good score. But most business owners have little to no credit reporting. So even one negative account can have a BIG impact on their business credit score.

Takeaways

It is essential that you continuously build your business credit profile just as you do with your consumer credit. One of the best ways to battle negative information on your report is easy. You need to offset it with LOTS of positive information. So continue building credit for your business just as you do with your consumer credit.

For more information, check out this fantastic post from Straight North. It’s all about Do’s and Don’ts for your business credit score.

Check out all of the necessary details. And find out how we can help you build business credit.

1 Comment

  1. Thanks for the suggestion to check business credit by obtaining business credit reports from main business reporting agencies. My husband and I recently started our own company, and we’re worried about keeping our credit score up. We haven’t made great financial decisions with our credit, so we’ll definitely need to obtain a business credit report from one of the agencies you mentioned. Hopefully we can find a way to repair our credit if the results are great.

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