Whether you’re an entrepreneur or a small business owner, you’ve likely had many opportunities thrown your way. There might have been business premises you wanted to lease or a company you wanted to align with to purchase stock.
However, if there’s one thing that can stop you from reaching your full potential, it’s your credit score. If businesses and individuals don’t see you as a trustworthy borrower, they may be less likely to work with you. When your credit score is less than perfect, you may like to consider doing some of the following things.
Purchasing Tradelines
Purchasing tradelines from some of the best tradeline companies might be how you improve your credit score and say goodbye to those missed business opportunities. Tradelines allow you to piggyback off of someone else’s good credit to build up your own and be seen as trustworthy for personal and business opportunities.
Improving your credit score with tradelines may take several days or even weeks, but it can be worth it for many people who become better positioned to sign up for mortgages, credit cards, and loans.
Pay Your Bills On Time
Improving your credit score doesn’t have to be a complicated task. Instead, it can be as simple as paying your bills on time in your business and personal life.
Many credit experts state that your payment history is the most crucial part of your credit score, which means if you continually pay on time and without being charged interest and penalties, you may slowly build good credit over time.
Lower Your Credit Utilization Rate
Even if you or your business only relies on credit until the end of the month when you pay off your balance in full, you may not be doing your credit score any favors. Many lenders value a low credit utilization rate, which shows that you’re only spending a small fraction of your available credit. This may help them see that you have good money management skills.
Separate Business From Personal
When you first launch a business or become a sole trader, you may not split your finances right away. You may only be helping the occasional customer, and it might not make much sense to divide the two immediately.
However, for the sake of your credit score and business future, it may be worth doing sooner rather than later. Use business loans, business credit cards, and a business line of credit. Remember, firms will work with your business, not you personally.
Check Your Credit Report
Don’t be afraid to view your credit report and see if all information is accurate. Something as simple as a name being misspelled can see other people’s information being entered on your report, along with fraud and other errors. If you can iron out any issues with your report, you may end up with much higher credit than before.
It can be frustrating to know that your credit score is holding you back professionally and personally. However, you might not be stuck with poor credit forever. Any of these tips above may help you improve your score and your opportunities simultaneously.
