Fixing Your Business Credit Score

Your business credit score should be taken seriously. Your commercial credit report will directly affect your ability to get loans for your business. These tips will help you fix your business credit score.

Analyze Your Commercial Credit Report

If your business credit score is poor, or needs some improving in order for you to be able to qualify for commercial loans, you will need to know exactly what needs to be improved. Obtain your credit report from the credit bureau and then go over it carefully looking for errors and omissions that can affect your business credit score.

Look for debts you've paid off that are still showing as outstanding, debts that are not yours, and debts that exceed the seven year mandate. You can correct any errors in a short period of time.

Give Yourself Time to Fix Credit Score

If you know your business credit score is poor, and you also know that your business needs commercial loans, you need to plan ahead. Depending on the depth of the problem with your credit score, it can take you 6 to 18 months to repair. Only then can you apply for a loan successfully.

During the time you are working to repair your business credit score, you must always make your payments on time. Don't make the common mistake of closing credit accounts that are not in use. Your credit history is very important to your business and closing accounts does not allow that to be reflected at the credit bureau and thus your business credit score suffers.

Don't Get in too Deep

It's critical that you do not get any more negatives at the credit bureau. Rebuilding your business credit score can be a huge undertaking. If you are struggling now to make payments you need to know that the payments you have are ones you can afford, otherwise you won't be successful at your goal to fix credit score.

Spread the Wealth

If you are working on improving your business credit score try spreading your payment out over a couple of different credit cards. While it may be a bit of a nuisance it can really help your debt to credit ratio, which in turn means a better business credit score on your commercial credit report.

Talk Openly

If you are having difficulty making your payments and you are avoiding your creditor, you will make things worse. Instead, talk openly with the creditor and be honest about your inability to make all or part of your current payment. Long term customers are usually given some wiggle room if they are simply upfront.

Your business needs a good business credit score. Once you have rebuilt your credit you should have no problem getting commercial loans.