As a small business owner, your business credit score plays an important role in getting the financing you need to run and grow your business. A good credit score can help you get better terms on loans, better interest rates, and even better rates on insurance. But with so many factors that make up a credit score, it can be hard to keep it up to date.
That’s why we’ve put together this list of five proven strategies to help you improve your business credit score in 2023. By following these strategies, you’ll be well on your way to improving your score and getting the financing you need to keep your business successful.
1. Get Your Business Credit Report
The first step to improving your business credit score is to get a copy of your business credit report. This report will show you the exact information that’s being used to calculate your score and can help you identify any potential mistakes that need to be corrected.
2. Pay Your Bills On Time
Paying your bills on time is one of the most important things you can do to improve your credit score. On-time payments show lenders that you are a responsible borrower, which goes a long way towards improving your score.
3. Monitor Your Credit Utilization Ratio
Your credit utilization ratio is a measure of how much of your available credit you are using. This ratio should be kept below 30% for maximum benefit. You can monitor your ratio by looking at your credit report or by setting up alerts from your credit monitoring service.
4. Get Tradelines
Tradelines are accounts that are opened in your name and reported to the credit bureaus. These accounts can help to boost your score, as they show lenders that you have a history of responsible money management.
5. Keep Business and Personal Finances Separate
Keeping business and personal finances separate is essential for maintaining a good credit score. Mixing the two can lead to inaccurate reporting, which can have a major impact on your score
By following these five strategies, you’ll be well on your way to improving your business credit score in 2023. A good credit score will help you get the financing you need to keep your business running and growing. So take the time to review your credit report, pay your bills on time, and keep business and personal finances separate, and you’ll be well on your way to success.
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