How To Improve Your Company Credit Score

A damaged credit score is both stressful and costly but it's not the end of the world. As hopeless as the situation might seem, bad credit can't last forever. There are things you can do to improve your credit score.

Get a copy of your company credit report

You can't start fixing your credit score until you know exactly what you need to work on. Your credit report includes a list of the accounts that are damaging your credit score. You can get a copy of your credit report from each of the three major credit bureaus or order it online. This can put you in control of your company’s debt management. It’s instant, simple and secure to use.

Dispute company credit report errors, if any

If your credit report contains errors, you own the right to have them removed by writing to the credit bureau or the creditor who listed the false account on your credit report. Errors can affect your credit score more than you think. For example, an inaccurately reported late payment can bring your credit score 60 to 110 points down depending on the information contained in your credit report.

Pay off your debts

Your payment history makes up 35% of your company credit score. The more debts you have, the more it affects your credit score. You can get your account back on track by making a lump- sum payment to cover the entire past due balance. If you find it impossible to get back on track with your payments, you can try to work out a settlement plan with the creditor. By settling your account, the creditor agrees to accept a lower-lump sum payment to satisfy the account.

Monitor your credit report

You need to monitor your company credit report regularly and sign up for alerts that warn you of changes that might indicate the fraudulent use of your business credit information. Popular alerts include notifications on inquiries and new tradelines. Furthermore, you can protect your business from non-paying customers, partners and suppliers by checking their business credit report before doing business with them.

Separate your personal and business expenses

Many small business owners don't separate personal and business expenses and therefore don't build business credit tradelines. When starting a business, it’s necessary to use personal guarantees and credit. However, the disadvantage of relying solely on personal credit is clear. If your business is ever at risk, your personal credit score is at risk as well. Failing to separate your business credit from personal credit can also limit your business growth potential.

Pay your bills on time

One of the best ways to build and protect your company credit is to pay your utility bills on time. To help ensure you do, you can sign up for a business bill pay service offered by most banks. Then you can set it to automatically pay the minimum amount due on each account each month.

Thus you may never have to worry about the late payments bringing down your credit score or paying late fees.

A good business credit report and score are essential for getting the money you need to successfully run and grow your business. Unlimited access to your business credit report gives you the tools you need to manage your credit score.