You likely already know how important it is to maintain a good business credit score. If you don’t have a good business credit score, then it’ll be so much harder to make big purchases. You need to be able to utilize credit lines to buy equipment, work vehicles, and other important things. Read on to get important information about improving your business credit score.
Making Your Payments on Time
It might seem obvious, but one of the most important aspects of improving your business credit score has to do with making your payments on time. When you make the payments on time, you’re going to be seen as reliable. Even a young business will be able to see its credit score go up by making payments on time. As the years go by, responsibly paying what you owe before the due date will help you to establish good business credit.
You Have to Use the Business Credit
Your credit score isn’t going to go up if you don’t use the credit. Start by opening a few business credit card accounts or taking out a loan. You don’t have to use the entire credit limit, but simply having open accounts that are being paid on time will help to improve your score. As an individual, if you don’t have credit cards or loans you won’t have a great credit score, and the same rings true for businesses.
Try to Keep Debt Levels Low
Using your business credit card shouldn’t be your first instinct. To get a high business credit score, you’re going to need to keep your debt levels low. Only use your business credit card when it’s necessary to do so. When your debt levels are low, your credit utilization will be low, and that will help you to maintain a higher score.
Don’t Close Accounts
Closing accounts can actually have a negative impact on your credit score. Even if you pay off a loan, it’ll be better to keep a line of credit open. This keeps your score high instead of causing it to take a hit. Keep using a bit of credit now and then so that you can keep making payments to push your score higher.