We’ve detailed numerous ways business owners can boost their credit scores – including “5-3-2 Rule” and credit blunders to avoid. But what you’re looking for some easier fixes?
Don’t fret – here are three easy ways to give your score a boost. But what you’re looking for some easier fixes?
1. Break your payments up throughout the month
Paying your bills off monthly is well and good, but if you use your cards throughout the week, you may want to consider evening out your balance every Friday. That will limit the amount of credit you’re using – and that will improve your credit score.
2. Maintain long relationships
You can give your credit score a big boost by keeping your trade lines open for at least six months each. You don’t want anyone to be thinking that you go through your credit history too quickly, or aren’t able to maintain business or payment-related relationships. So maintain your credit accounts for long periods of time, and you’ll be putting a step forward toward showing lenders you’re a trustworthy client.
So maintain your credit accounts for long periods of time, and you’ll be putting a step forward toward showing lenders you’re a trustworthy client.
3. When necessary, pay in full to remove a debt from your history
Finally, if you find that you’re late on a payment, you want to do everything possible to prevent that debt from having a negative effect on your credit score. Debt collectors will often be willing to remove the debt from your credit score with all major agencies if you’re able to pay the expense off in full. That will help you to do what’s most important for your business – obtain small business financing support whenever it is needed.
That will help you to do what’s most important for your business – obtain small business financing support whenever it is needed.
What methods have you used to boost your credit score?
Tell us in the comments below.