Here are some tips you should always keep in mind to be successful in your quest to establish and maintain a great business credit history:
- Resolve to maintain a high personal credit score. Start-up business owners, like you, should realize that your chances of qualifying for the right credit cards and loans are tied to your personal credit history. This is because most lenders and credit card companies today would rely on your creditworthiness to ultimately decide whether or not to accept your application for a business line of credit.
- Therefore, to be awarded a business credit program that you can use to boost your business credit history, you must do everything possible to maintain an excellent personal credit history. To do this, be sure to manage your existing home loan, as well as your existing credit cards, as responsibly as possible. And make sure copies of your annual credit report are free of errors or inconsistencies, which could jeopardize your chances of qualifying for a suitable business loan or credit card account.
- Sign up with a business credit tracker. As soon as possible, you should register your business with a popular business credit tracker, such as Dun and Bradstreet or D&B. You can do this by visiting the local office of this company or by taking advantage of their online registration service. Over time, you will receive your business registration number, which will then be used by D&B employees to monitor the credit activities of your small shop or store.
- Get a business credit card. Always remember that you cannot create a business credit profile UNLESS you are willing to apply for and service a business line of credit. This means that after you validate the entries on your annual credit report, the next thing you need to do is sign up for a credit program, either for a business credit card or loan.
- Just remember that it’s much easier to apply for a credit card than a business loan. After all, simply by sending a security deposit to your target business, you may soon be granted a secure card account, which you can use to cover the purchases and bills your business establishment will incur.
- Stay up to date with your business financial obligations. The best advice for maintaining a strong business credit profile is to simply submit payments on time and in full to your card issuer or lender. Always remember that good credit habits will not only help you build a good working relationship with these companies. They can also help improve your business’s financial prospects, especially if you plan to apply for larger loans later.
- Make sure all relevant credit activity is recorded on your business credit report. Otherwise, the time, effort, and energy you’ve invested in building and maintaining a strong business credit profile will be wasted.
Therefore, before applying for a loan or credit card program, you should ask the company whether or not it sends timely reports of consumer and business owner activities to business credit trackers. If they do then you can sign up for one of the programs they offer. But if it isn’t, you should continue to look for companies that can provide you with the exact type of service and program that you need.
