Keeping your business credit score healthy can feel like a hopeless battle. If you’re depending on your credit cards as a cash flow option, you can soon find your balances growing and your credit rating suffering. Credit bureaus tend to stick to the same old reports, and this usually includes your personal credit information. This is because many businesses use their personal credit score when applying for their lease and other purchases. The good news is there are credit card alternatives businesses can use to improve their credit. Here we look at your options to help breathe new life into a poor business credit score.
Your credit card balances are negatively affecting your credit rating. The more money you owe, the more dependent you appear to be on credit to survive. If you can pay down your credit cards, you increase the amount of credit available to you while also improving your credit score. So how would that work? First, you need to find a credit card without fees, offering a lower interest rate. You then use that credit card to pay off your credit card balances and then have one lower monthly payment instead of several.
While this does sound like a good approach there are a few things to consider. First, credit-seeking can negatively affect your credit score. When you apply for a loan or credit card, it is noted by credit bureaus. This can actually make things worse. As well, even if a credit card offers a low interest rate and no apparent fees, often you are hit with hidden fees if you carry a balance. Also not good.
If you can make regular payments to your vendors and suppliers, or don’t ever carry a balance with them, this is another way you can boost your credit score. These types of credit lines are not reported by the credit bureaus, which means you could be missing out on improving your credit score. The problem with this idea is that you must be working with suppliers or vendors that report to the agencies. Because this is extra work, it can be extremely hard to find companies that do this.
You could try asking your suppliers and vendors to report in, but chances are if they aren’t doing it now, they aren’t about to start just because you asked them to! Even if you do get some reports sent, they tend to be less consistent and dependable than other forms of credit as they can vary from month to month.
You have been paying your business space rent for years without ever getting credit. If you can report your rental payments, they can quickly improve your credit rating. Debie reports your lease payment history to help build your business credit score. When you sign up with debieratings.com, your rental payments are automatically sent to credit bureaus. There is no need to coordinate anything with your landlord. Instead, you simply sign up for the service. Most similar business rent reporting services require coordination of some sort with the landlords, which can lead to delays. As well, they tend to cater to consumers instead of businesses. You want a service that will report your office or store rent, not your home rent. When you sign up with Debie, they can report your business rent payments as trade line items within your credit report.
The entire process is automatic ensuring your credit score isn’t damaged like other credit building options. As mentioned, applying for more credit cards can damage your credit rating. However, the Debie rent report is submitted monthly without negative effects on your rating. In fact, it is quite the opposite. When you pay your landlord as you always have, you can watch your credit rating soar.
Debie allows small businesses to gain control over their financial future, providing credit information that will help improve your rating. Using a positive curve, Debie quantifies and rewards high-quality business owners and operators by considering the positive business practices of your operation. When ratings are based on paying your bills on time and effective business management, your ratings reflect your business strengths.
Debie also provides services and coaching to clients to help you improve your credit ratings. Your business gains more control of your rating while reaching your full potential with the opportunities presented by an improved business credit score.