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Need to Improve Your Credit? Learn How to Improve your Small Business Credit Score

If you’re a small business owner, you likely understand the importance of having a good credit score. A good credit score is essential for obtaining financing and obtaining favorable loan terms, and it can also help you secure better rates from vendors, suppliers, and customers. Unfortunately, many small business owners struggle to maintain a good credit score, which can be extremely damaging for their businesses.

Melanie Laurent

If you’re a small business owner, you likely understand the importance of having a good credit score. A good credit score is essential for obtaining financing and obtaining favorable loan terms, and it can also help you secure better rates from vendors, suppliers, and customers. Unfortunately, many small business owners struggle to maintain a good credit score, which can be extremely damaging for their businesses. If you’re looking to improve your small business credit score, there are some simple steps you can take to get started. 

1. Monitor Your Credit Report 

The first step to improving your credit score is to monitor your credit report. You can get a free copy of your credit report from all three major credit reporting bureaus (Equifax, Experian, and TransUnion) once a year. It’s important to check your credit report regularly, as it will provide you with the most up-to-date information about your credit score. In addition, it’s important to review your credit report for any errors or inaccuracies, as these can negatively affect your credit score. 

2. Pay Your Bills on Time 

Paying your bills on time is one of the most important factors in improving your credit score. Late payments can stay on your credit report for up to seven years and can significantly impact your credit score. Make sure you’re always on top of your payments and set up payment reminders if necessary to ensure you don’t miss any due dates. 

3. Keep Credit Card Balances Low 

"Most credit cards come with a credit limit, which is the amount of money you have available. If you use the card responsibly, the bank will consider increasing your credit limit over time. This helps increase your credit score, boosting your chances of getting approved for more credit cards, car loans and a mortgage" (The Points Guy, 2023).

It’s important to keep your credit card balances low if you’re looking to improve your credit score. Credit utilization is a key factor in calculating your credit score, so it’s best to keep your credit card balances at 30% or lower of your total credit limit. 

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4. Don’t Close Old Credit Card Accounts 

Closing old credit card accounts can actually have a negative impact on your credit score. As your credit history is a key factor in determining your credit score, it’s important to keep old accounts open if you’re looking to improve your score. 

5. Apply for Business Credit

Applying for business credit can be a great way to improve your credit score. Business credit cards and loans can help you build up your credit history and demonstrate to lenders that you’re a responsible borrower. "Business credit cards allow you to keep your personal and business expenses separate and may offer attractive rewards and perks" (CNBC, 2023).

Here are some of the best options available to business owners with poor to average credit:

6. Get Professional Help 

If you’re still struggling to improve your credit score, it may be time to seek professional help. A credit repair specialist can help you identify and address any errors or inaccuracies on your credit report and help you create a plan to improve your credit score. By following these tips, you can take control of your credit score and start improving it today. 

It’s important to remember that improving your credit score takes time, so be patient and stay consistent with your efforts. With the right strategy, you can improve your small business credit score and improve your chances of securing the financing and terms you need to succeed.

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Submit all the necessary information to a number of potential lenders in one place! We eliminate the need to fill out multiple applications and allow you to compareloan options from different lenders. Reduce the risk of errors and time to secure a loan, as all the necessary information is collected in one application.

By submitting all the required information in one place, businesses can speed up the loan application process and receive a loan decision much faster so you can start to grow your business, more quickly.

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