Your business credit score may be a significant indicator of your general financial health. Determining how to boost your credit score seems overwhelming, but it is an investment into your future. Here are a few ways to improve the credit score of your business.
-
Open a Business Bank Account
Consider opening a business account for your business. Separating your finances from your business finances will be great for your credit. Setting up the account will make getting a business credit card easy. It could make it easy to build strong relationships with banking partners. In addition, you will have an easier time getting loans if you need them.
-
Open a New Credit Card
Consider opening a new business credit card for your business. You could improve your business credit score if you stay on top of your monthly payments and spending. The trick is applying for a credit card that reports to one of the leading commercial credit bureaus. The customer service team should let you know if your credit card provider sends the details to a credit agency.
Once you have your new card, develop a strategy to use it. You could designate it for expenses like fuel or office supplies. That way, you have a good idea of how much you will spend every month.
Your tradeline could be useful as well. It is posted on your credit file to show if you have been dependable with your credit. Explore various tradelines to determine the best ones for your business. There is no limit to the number of tradelines you can have. However, having too many could negatively impact your credit score. An authorized user tradelines can be great for your business. Make sure to check superior tradelines review online before choosing one.
-
Trade References On Your Credit File
Some credit bureaus use trade references to get an idea of your payment history with suppliers and vendors. Trade references depend on various factors. They include the manner of payment, the amount that’s due, and the amount you currently owe. Positive trade references can improve your business credit score. If you work with several vendors, request them to report your payments to a credit bureau. Ensure that you meet the requirements of your trade agreement.
-
Pay Bills on Time
Paying your vendors, utility companies, landlords, and lenders on time could improve your credit score. Keep track of your cash flow to ensure you are never behind on bills. Staying ahead of your payments, even by a few days, will boost your credit score. Here are some tips to make sure that you pay bills on time:
- Block off a day in the week to pay bills
- Track the payable accounts in a spreadsheet
- File invoices immediately you receive them and set calendar reminders to avoid late payments
- Set up automatic payments for your recurring expenses.
-
Update Your Business Information With Credit Bureaus
Commercial credit bureaus gather your information and use it to create business credit scores. If your information is outdated, the score could be wrong as well. Even though the bureaus have different ways of creating business credit scores, they all depend on the available information. Suppliers and lenders also send reports to bureaus. Update your credit file with all the main bureaus, and not just one.
Building your business credit score can take some work. Simple tips to guide you include opening a business bank account, getting a new credit card, and paying your bills on time. A good credit score will work wonders for your business.
