Have good business credit will benefit your business in three main ways. For starters, you can obtain business financing faster when you apply for small business loans. Secondly, your vendors and suppliers will offer you more favorable repayment terms. Lastly, good business credit will safeguard your personal credit score. But don’t sweat it if you have a bad business credit score because you can utilize a business credit repair service to help you improve your credit score.
Business credit repair companies recommend the following strategies to help repair your business credit.
1. Pay Your Bills EarlyThe first step to earn and maintain good business credit is by paying your bills early or settling them on time. Credit repair agents recommend setting up your business’ recurring costs through your bank so that your vendors and creditors are paid promptly on time. You should avoid having overdue payments because they affect your business credit score negatively. Especially if the overdue bills are recurrent expenses like a supplier invoice, your business credit score will drop significantly.
If you’re struggling to pay your debts because your business is underperforming, you should talk to your creditors and negotiate new repayment terms. When you’re having cash flow challenges, you may want to pay your largest invoices first, so you limit the damage to your business credit. Altogether, seeking a business credit repair service will help you repair bad business credit fast and more effectively.
2. Limit Your Revolving Credit DebtRevolving credit refers to an agreement between a debtor and a creditor that allows a debtor to take loans repeatedly up to a certain set limit. If you have a high utilization rate on your revolving credit, it means that you have utilized half or more than half of the total debt available to you. This will hurt your business credit score substantially because it indicates that you have a high appetite for debt.
A business credit repair company will advise you to keep your utilization rate on all your revolving accounts below 30%. This means that if your total credit limit is $10000, you should try and keep your debt below $3000. Ideally, a utilization rate of 30% or below will not damage your credit score since you can afford to pay off the debts on time. According to data from the Federal Reserve, Americans’ outstanding revolving debt, which is mostly credit card debt, reached $980.4 billion for the first quarter of 2021.
3. Negotiate with Creditors to Correct Delinquencies Issued on Past Due AccountsLenders can make negative remarks on your business credit account when you default on payments. Negative remarks hurt your business credit score significantly, but you can approach your creditors and work out a deal to remove the delinquencies on your account. It may take some effort to convince lenders to withdraw the remarks since they’re not legally or morally mandated to do so. Luckily, if you have enlisted business credit repair services, you’ll have experienced credit repair agents negotiate with lenders on your behalf.
4. Have Positive Trade References in Business’s Credit FileIf your vendors and partners don’t share their payment data with a credit reporting agency, you should encourage them to leave a positive trade reference for your business. If you have many positive trade references on your business credit report, you’ll have a good credit rating overall. Most credit reporting agencies will require at least three positive trade references to generate a business credit card rating. To make it easy for your vendors to provide positive trade references, you should ensure that you pay them in time and maintain a good business relationship with them.
Just like your personal credit score opens many financial opportunities for you, good business credit score will do the same. The above-discussed tips and seeking the help of a business credit repair service will help you maintain good business credit. This will help you grow your business.
Having good business credit is essential for any company regardless of its size. When your company has a good credit score, you’ll have access to business loans, and vendors will not hesitate to do business with your company. On the other hand, bad business credit complicates matters for your company. It may stop you from accessing small business loans and complicate your relationships with vendors. That’s why you need to seek business credit repair services from a business credit repair company near you.
When you seek credit repair services, your company will benefit in the following ways.
1. Detect and Correct Errors in Your Credit ReportNumerous studies have shown that approximately 79% of all credit reports contain errors. Business credit reports are generated by three major business credit bureaus – Equifax, Dun and Bradstreet (D&B), and Experian. There are other notable business credit bureaus such as Transunion and Credit.net. Business credit scores from any credit bureau are subject to errors of commission or omission.
The method that business credit bureaus use to collect information gives room for many errors. Typically, creditors relay information to a business credit bureau. In turn, the bureau will match the information with your business account and add it to your credit report. Errors happen here because another company may have the same business name and address as your business. Therefore, the information added to your credit report may be from another business account, and this will affect your credit score.
Other common errors in your business credit score may be from identity theft or when the age of your business is wrongly captured in the credit report. For instance, your company may be 10 years old, but the credit report may indicate five or six years. These are some of the common errors in your business credit report that business credit repair services will help you correct.
2. Business Credit Repair Companies Understand Credit Laws BetterYour best bet to attaining great business credit is by properly managing your commercial credit card, vendor accounts, and your business bank account. This means paying off your business credit card debts in time and honoring your vendor payment terms. However, even after adhering to the best practices, you may not still get a good business credit score reflecting your financial accountability.
Fortunately, you can seek business credit repair services to help you get a higher business credit score that will give your company more advantages. Credit repair agents are familiar with the credit laws that can help you make a case to get a better credit score. These are laws such as The Fair Credit Reporting Act (FCRA), The Fair Credit Billing Act (FCBA), and The Fair Debt Collections Practices Act (FDCPA). A top credit repair business will leverage these credit laws to your favor to ensure that you get the business credit score that your company deserves.
3. Credit Repair Agents Take Less Time to Repair CreditYou may have a hard time when working on credit repair because of the various laws involved in each step. For instance, when challenging an error in your credit report, you may have to go back and forth between creditors, collection agencies, and credit bureaus. This is not only exhausting, but it’s also time-consuming.
You may not afford to dedicate most of your productive time to credit repair, especially if you are running a young company. Still, you need good business credit so you can have more access to small business loans. That’s why you should enlist business credit repair services for your company. Credit repair agents have more experience navigating credit laws and handling correspondence with business credit bureaus.
Having good business credit is beneficial to your company because it helps you access credit on better terms. If you have a questionable credit report or believe that you can get a better credit score, you should utilize business credit repair services.
You may think that your credit score doesn't matter, but it does. If you're among the 18% of adults aged 18-24 who say they never check their credit scores, you need to rethink how you view your credit score. A bad credit score can negatively affect your life in several ways.
Here are four reasons you do, in fact, need a good credit score and how a credit repair agent can help you bounce back effectively.
Your credit score affects your ability to obtain a loan from banks and credit unions. Since credit scores demonstrate how well a person can manage their money and their ability to pay back charges efficiently, a bank or a credit union won't be willing to provide a loan to a person they don't trust to pay the money back.
So, if you ever want to take out a business loan or a student loan, think again. You'll need a good credit score in order to successfully move past the loan application process.
Finding a Place to Live
You may also need to obtain a loan if you ever decide to purchase a house. Your credit score affects your ability to take out a loan and create a mortgage payment plan. Not only this, but a poor credit score can also impact your ability to rent an apartment or condo. Many real estate agents and landlords ask prospective tenants to fill out an application that includes a credit score.
If you have a poor credit score, a landlord or real estate agent will choose someone with a good credit score over you. This is because a good credit score portrays trust and the ability to pay rent each month, which are two things a landlord will be looking for when they're trying to fill an empty apartment or condo.
Nowadays, since credit scores are viewed as important numbers that determine a person's ability to manage their money efficiently, employers even run credit checks on prospective employees. Your trustworthiness as a future employee may be in question solely based on your credit score, and you don't want this number to affect your ability to obtain the position you've always wanted. So, if you want your dream job and have a poor credit score, you need to repair your credit as soon as possible. Thankfully, a credit repair agent from a reputable business credit repair service can help.
Since a good credit score demonstrates your ability to pay back your charges in an efficient manner, you'll be able to better manage your money when you pay your bills on time and in full. So, a good credit score will allow you to enjoy financial stability and perhaps enhance your money management skills as well.
Good credit is important, and credit repair businesses are available to help individuals who have poor credit scores. If you're in this boat, trust reputable credit repair agents to help you. You want to be able to take out loans, find a great place to live, obtain your dream job, and enjoy financial stability for years to come, so contact a repair credit agent near you today!