There are several important things you should know about business credit before you get yourself into a big credit mess that you can’t handle. Credit isn’t always bad, and if you now how to use your credit cards correctly your credit can end up being very helpful. If you are going to set up good business credit in order to be given more credit later on, you will need to know about your credit score. A credit score is a number that is used by lenders to decide whether or not you should be given a loan, credit card, or mortgage. If your credit score is good, you will be able to get business credit easily, but if your credit score is bad, you may not be able to get any lender to give you a credit card.
You can find your credit score through your credit reporting agency (CRA) every twelve months if you request to receive a report. Through some of these agencies you can also get different numbers such as a DUNS number that makes you stand out to lenders. If you want to improve your credit score, you can do so by paying your bills on time and in full. It also helps if you avoid large balances. If you have a lot of unused credit cards and you are looking to close the accounts, don’t close them all at once. While you are canceling make sure that you are canceling newer cards and not the older ones because it is a good sign for lenders if you have long-running relationships with credit card companies.
The main thing you can do to keep your credit score up to par is not to open new credit cards at all. Always think twice before signing up for a new credit card, and make sure you aren’t stockpiling a bunch of credit cards that you don’t use or can’t pay back. If you want to know more about the things you should know about business credit, you can look on Restaurant Hospitality. More…
