Having a good company credit score is more crucial than it has ever been in modern society. From making it more difficult to get loans to drive you to pay more for insurance or services, a poor credit score may negatively affect your company in many different respects. Fortunately, looking over your company's credit score is simple. We will then guide you through how to review your company credit score and what to do should you discover that it potentially needs some work.
How Do Business Credit Scores Work?
You have a business credit score, did you know? Not your credit score but rather a company credit score. Your corporate credit score is used to ascertain your likelihood of returning the borrowed money, the same as your credit score dictates. Lenders determine whether or not to extend your credit based on your company credit score and what interest rate to charge you should they so decide.
Where Can I Check My Business Credit Score?
You may see your company credit score in a few distinct ways. This should be done consistently because your score will significantly affect your capacity for lines of credit, loans, and other financings.
Here are some options for where you can check your business credit score:
- Requesting your free yearly credit report from the three main credit bureaus—Experian, Equifax, and TransUnion—this page AnnualCreditReport.com lets you Either ask for all three reports at once or scatter them across the year to always have a current report.
- Credit Repair Ease proposes an improvement in your company credit record and provides you with a free business credit score.
Pro Tip: Check Your Credit Score
Reasons to Check Your Business Credit Score
One of the most crucial elements lenders take into account when deciding whether or not to grant credit is your company credit score. While a negative credit score might cause your company to be refused financing completely, a strong credit score can lead to improved conditions and cheaper interest rates. You should routinely review your company credit score for four reasons:
1) To stop mistakes and misreading. Though mistakes happen, you want them off of your record. Reviewing your score allows you to find any mistakes so you may contest them and clean your record.
2) For monitoring your development. Regular score checks help you assess how effectively you are handling your credit and point out any areas that need work.
How to Establish and Build Business Credit?
If you run a company, you are aware of the need for financing. Good credit will enable you to apply for lines of credit, loans, and alternative funding under reasonable conditions. Though it might be intimidating, establishing and strengthening your company credit is well worth the work. These pointers should assist you to begin going.
Check first if your company has a strong basis. This covers having a strong company strategy, a clearly defined target market, and a wonderful product or service. Start developing your company credit file then by requesting trade lines with suppliers and vendors. Your company credit report will disclose these accounts, which will assist in defining your credit history. Maintaining good credit scores, keep on making regular payments on these accounts.
Pro Tip: Improve Your Credit Score
Keep Your Business Credit Score Healthy
For many reasons, a firm should keep a good credit score. A high score indicates that should you borrow money, you qualify for better interest rates and terms, therefore saving your company money over time. Moreover, a solid credit record facilitates future finance acquisition for your business should it expand. Following these basic guidelines can help you maintain your company credit score in excellent condition and raise your loan approval prospects when needed.
Call on (888) 803-7889 & Check your business credit score now!