Maintaining a healthy credit score can be quiet hard for many businesses. As we all know, credit scores are based on your credit history and are a basic indication of your credit worthiness for the time to come. Businesses with poor credit scores have a hard time trying to get the loan they want, which is why the best option for them is to get their credit score improved and maintained.
If you have been able to improve your credit score, you would also want to know that maintaining the credit score is just as important as helping it improve. Hence, you shouldn’t let the ball drop and should make sure that consistency is adhered to at all times.
Here we mention some of the tips that you can follow for maintaining a healthy credit score:
Separate Personal and Business Credits
Although we have reiterated this same fact multiple times, businesses around us keep committing the same error time and time again. Businesses forget to separate their personal credit from their business credit and face a conundrum that is hard for them to overcome. The credit you have personally attributed to you should be separated from the credit that you have for your business. This means that you shouldn’t be using your business credit for personal transactions and surely shouldn’t be using your business credit for personal transactions.
Doing any of the two above can wreck havoc to your overall credit score and will stop you from making any progress that you must have planned for yourself.
Maintain Payment History
Once you take a small business loan, you should make sure that you maintain your credit history and do not let the credit go out of your hands. The credit history is an important part of your business and goes a long way in dictating your authenticity. This credit history is dependent on your payment history and how good you have been at paying back loans. If you haven’t paid back loans with the religiosity that would be expected of a proven business, then your credit score can suffer as a result.
Choose Suppliers and Lenders Wisely
You should choose your suppliers and lenders wisely when it comes to dealing with credit. Being associated with a sketchy lender can be bad for your business and your credit report. Also a lender that does not have your best interest at heart will wreck damage to your credit score by not reporting your good payments. If you see such an error, report it to the credit reporting agency that you are working with.
If you still aren’t able to improve your credit, then work with FDF and get a small business loan from us.
Categorised in: News
This post was written by firstdownseo