Are you starting up a business and looking to get a small business loan? Unless you have already started using a business credit card for some time, your lender will most likely look at your personal credit score to help determine if they will lend you the money. If you have good credit you don’t have much to worry about, but if you have bad credit you’ll want to take action steps towards improving your score and look for bad credit small business loans so that you have a better chance of being approved.
Tips to Improve Your Personal Credit
1. Check your credit report for errors. If you think your score should be higher than it actually is, look to see if anything is reported incorrectly. Sometimes you’ll find that a creditor has put something on your report for a person who has the same name as you. Get this taken off immediately and your score will go up a bit.
2. Pay all of your bills on time. If you have a habit of making payments late, then you should set up online bill pay so that it only takes a few minutes, and clicks of your mouse, to pay your bills each month. No more waiting on the postal carrier to deliver them or worrying that busy office workers will not get your payments posted in time.
3. Pay off a smaller debt quickly. If you have a small debt that you could get rid of in a month or two, cut your expenses and get it paid off now. This will help your credit score, especially if it’s an old debt.
How to Start Your Business Credit Record
Apply for and open up a business credit card with your businesses tax identification number so that you can establish a credit record for your business. Use the credit card to pay for expenses each month, making sure to pay if off on time, and you’ll have the start of a good credit record for your business.
Doing any or all of these actions will either help your personal credit score improve or start building a business credit record so that your personal score isn’t taken into too much consideration. Get started today, even if you won’t be applying for unsecured business loans for a few months, or consider self-funding your business while you repair your credit. This will give your credit score time to improve.