If you’re a business owner, there’s a good chance you’ll want to understand how to boost the credit score of your companies credit card. Does that sound good? Great! Here are a few pieces of advice we thoroughly suggest you heed.
Check your business’s current credit score
How can you improve the state of your credit score if you don’t know what it is? So, look it up. This is the only way to understand what needs working on.
Head over to the website of a reliable credit reporting agency (like Equifax and Experian) and search for the following information: your business’s name, the country, and the state you’re operating from. You should note, if you’re planning on accessing data via Dun and Bradstreet, you’ll need your nine-digit D-U-N-S number to hand.
Establish your company
It’s not enough to just be a sole proprietor (that’s if you’re taking the improvement of your credit score seriously). More often than not, tiny businesses utilize their personal credit history. This is why clear boundaries between you as an individual and your corporation need to be set.So, register your business with both your local and federal governments as an incorporate or some kind of LLC.
So, register your business with both your local and federal governments as an incorporate or some kind of LLC.
Pay off your debt
If you incur debts, pay them off in time- this the most straightforward way to improve your business’s credit score. It’s even better if you’re able to pay off your bills earlier than they’re due. After all, only people who pay debt early can qualify for a Paydex score of 100.
We also recommend limiting your overall debt, as the amount of credit you use impacts the total calculation of your credit score. So, try your hardest to use no more than a quarter of your business credit limit at a time. It stands to reason, if you’re using a tremendous amount of credit, lenders worry you’ll default on your outstanding payments.