EE0-460 For small business owners, there is a certain peace of mind in knowing that if needed a business loan could be obtained for the company. Having good business credit is one of the main factors in being able to get a business loan. As with personal credit, companies need to carefully maintain their accounts in order to keep up a good credit score.
Pulling Credit Reports
For small businesses, it is imperative to regularly access credit reports for review. With personal credit, doing this can affect scores. However, with businesses this is not the case. Pulling your business credit report often does not have any impact on your rating. There are actually monitoring systems that you can use which pull your reports or rating information for you periodically. You can also go through agencies like Experian to regularly get your reports.
Checking Your Reports
When you pull these records it is important to carefully review them. You should note changes and look for errors. When reviewing the documents for errors, you should be checking things like the balance information and listed accounts to see if everything is correct.
EE0-450 Used To Available Credit Ratio
When trying to build your business credit, you will need to get a few business cards and pay them on time every month. In addition to doing this, it is highly important to also keep your used to available credit at a low ratio. In other words, you don't want to use up your entire credit line. It is actually best to only use 20 to 30 percent of the available money on each card. Doing this will help boost your credit rating.
Pay Bills On Time
EE0-302 This you will hear over and over: pay your bills on time! This is the simplest way to build your credit score, whether it is for personal or business purposes. When reviewing your credit reports you should also be verifying that your payment history is showing up on the reports. You want to make sure that all bills that you are paying on time--anything that will reflect positively on your financial habits--show up on the reports. If there are companies that are not showing up, make sure that you call them and ask if they report payment history to the credit bureaus. If they do not, ask them if they can do so for your account, and if they say no it is best to do business with another company that will.
Pulling Credit Reports
For small businesses, it is imperative to regularly access credit reports for review. With personal credit, doing this can affect scores. However, with businesses this is not the case. Pulling your business credit report often does not have any impact on your rating. There are actually monitoring systems that you can use which pull your reports or rating information for you periodically. You can also go through agencies like Experian to regularly get your reports.
Checking Your Reports
When you pull these records it is important to carefully review them. You should note changes and look for errors. When reviewing the documents for errors, you should be checking things like the balance information and listed accounts to see if everything is correct.
EE0-450 Used To Available Credit Ratio
When trying to build your business credit, you will need to get a few business cards and pay them on time every month. In addition to doing this, it is highly important to also keep your used to available credit at a low ratio. In other words, you don't want to use up your entire credit line. It is actually best to only use 20 to 30 percent of the available money on each card. Doing this will help boost your credit rating.
Pay Bills On Time
EE0-302 This you will hear over and over: pay your bills on time! This is the simplest way to build your credit score, whether it is for personal or business purposes. When reviewing your credit reports you should also be verifying that your payment history is showing up on the reports. You want to make sure that all bills that you are paying on time--anything that will reflect positively on your financial habits--show up on the reports. If there are companies that are not showing up, make sure that you call them and ask if they report payment history to the credit bureaus. If they do not, ask them if they can do so for your account, and if they say no it is best to do business with another company that will.
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