![]() Here are a few key points to keep in mind: Your credit score is one of many factors that lenders will consider when determining whether or not they want to offer you financing. Know your numbers: Master your business credit score If you want to know your credit score, each credit bureau (Equifax, Experian and TransUnion) is required by federal law to send a free copy once a year upon request. In addition, when you know your business’s credit score, you can more accurately determine where you stand with respect to your competition. Plus, keeping your finger on the pulse of your credit report helps you stay aware of your business’ financial health, helping you identify strengths and weaknesses in your spending, and ultimately improve cash flow. Checking in with your report once a month ensures that you catch mistakes-including fraudulent activity or inquiries you want to remove-and address them in a timely manner. For starters, errors can pop up on your credit report at any point. There are a few reasons to check on your credit score on a fairly consistent basis. Question 5: “Can’t I just check my credit score yearly?”Īnswer: No, it requires more frequent check-ins. Learn more tips and requirements for small business credit scores. A score of 550 and below likely means you likely won’t meet the requirements of most lenders. A credit score of 700 or above will give you some of the best options when it comes to small business loans. Maintain your levels of debt - don’t use more of your credit than you needĪ good business credit score is a huge asset for your small business.Read through your credit reports for mistakes, and fix any errors you find.Try to keep your accounts open (like credit cards), even if they’re not very active. ![]() If it’s lower than you want it to be and you’re worried it’s going to negatively impact your chances of securing a loan with a lower interest rate, there are certain things you can do to improve it. Here’s the good news about your business (and personal) credit score. Question 4: “Is there anything I can do to improve my credit score?” Anyone-including lenders and suppliers-can view it. However, your business credit score is available to the public. Your personal credit score is highly regulated, and people can only view them with your permission. Question 3: “Can anyone request and view my business credit score?” When it comes to personal credit vs business credit, having a dedicated credit score makes good business sense and offers an extra layer of personal protection. Make it easier to identify deductions for tax reasons.Isolate your personal savings in the event your business has to close.Without a separate business credit score, your personal assets are at risk Protect your personal credit score, especially if your business is sued.While it might feel like an extra step, there are several good reasons to have both (and keep them separate). Question 2: “Can I just use my personal credit score instead?”Īnswer: No, you should have two separate credit scores: business and personal. Learn more about how to establish business credit, even if you have a limited credit history. Meeting these requirements will get your business a credit score. Have a line of credit with vendors/suppliers.Have at least one credit card for your business.Open a business credit file with all three reporting agencies: Experian, Equifax, and TransUnion.Open a business checking out under the business’s legal name.Get your federal tax identification number (EIN).There are certain steps you’re required to follow in order to obtain a business credit score. Question 1: “If I have a small business, do I automatically have a small business credit score?”Īnswer: No. The more you know about improving your credit score, the greater the odds you’ll qualify for the loan you want. 5 Questions About Your Business Credit Score… Answered! This short Q&A can help you understand the importance of your business score and how to improve it over time.
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