Here are pointers you should always keep in mind to succeed in your quest to establish and keep an excellent business credit history:
Resolve to keep a high personal credit score. Startup business owners, like you, should realize that their chances of qualifying for suitable credit cards and loans are tied with their personal credit history. That’s because most lenders and credit card firms today would rely on your credit standing to eventually decide whether or not to accept your application for a business line of credit.
Hence, to be granted a business credit program you can use to jumpstart the credit history of your enterprise, you should do your best to maintain an excellent personal credit history. To do this, see to it that you’ll manage your existing mortgage loan as well as your existing credit cards in the most responsible way you can. And make sure that the copies of your annual credit report are free from errors or inconsistencies, which could compromise your chances of qualifying for a suitable business loan or credit card account.
Sign up with a business credit tracker. As early as possible, you should register your enterprise with a popular business credit tracker, like Dun and Bradstreet or D&B. You can do this by visiting the local office of this firm or by taking advantage of their online registration service. In time, you will receive your business registration number, which will then be used by the employees of D&B in monitoring the credit activities of your small shop or store.
Get a business credit card. Always remember that you cannot build a business credit profile UNLESS you’re willing to apply for and manage a business line of credit. This means that after validating the entries in your annual credit report, what you should do next is to sign up for a credit program – either for a business credit card or a loan.
Just remember that it is a lot easier to apply for a credit card than for a business loan. After all, by simply submitting a security deposit to your target firm, soon you can be granted a secured card account, which you can use for covering the purchases and bills that will be incurred by your commercial establishment.
Keep up with the financial obligations of your enterprise. The best tip for maintaining a solid business credit profile is to simply submit on-time and complete payments to your card issuer or lender. Always remember that good credit habits will not just help you build a good working relationship with such firms. They can also help improve the financial prospects of your enterprise, especially if you have plans to apply for bigger loans, later on.
See to it that all relevant credit activities are recorded in your business credit report. Otherwise, the time, effort, and energy you have invested in building and maintaining a solid business credit profile would prove to be in vain.
Hence, before applying for a loan or a credit card program, you should ask the firm whether or not they submit timely reports of consumer and business owner activities to the business credit trackers. If they do then, you may sign up for one of the programs they offer. But if they don’t then, you should continue searching for companies that can provide you the exact type of service and program you need.
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