If you already pride yourself on keeping a high credit rating, then you understand what you have to do to accomplish this. As a business owner, you not only have a personal credit score, but you have a business record as well. Keeping track of your personal credit score is easy, but it’s not as straightforward for businesses. Learning the ins and outs of business credit can help you achieve a higher score and avoid making costly mistakes. 

Understand Business Credit

When you are focused on building credit for your business, you must know the key differences between personal and business credit. Even if you’ve been incorporated for a few years already, you still may not have a credit score. There are certain actions you must complete to have a record of business credit. Things like paying your bills on time or early can help increase your scores. 

Protect Your Ratings

Another important aspect of building credit is to regularly monitor your reports. If you haven’t looked at your history in a while, it’s probably a good idea to check it out. Because your personal credit reports have such a big bearing on your business scores, it’s a good idea to sign up for some monitoring. Identity thieves prey on people who don’t regularly look at their reports. Staying vigilant can help you spot problems early before they can have more damaging consequences. Set up alerts so you know any time something changes on your credit report.

Increase Your Score

Once you have a better understanding of the factors that make up your business scores and are practicing good monitoring habits, then you can work on increasing your score as you’re building credit. Lenders are much more willing to work with companies that have a solid credit history. If you have more than one business credit card, then you should make sure that you’re using the least amount of your available credit as possible. Keeping your debt-to-income ratio low is also another factor that will increase your score. It takes time to build a good history, so be patient while you’re in the beginning stages.

Putting in the necessary work to raise your credit scores will help open the doors to more opportunities in the long run. Business credit doesn’t happen automatically, but with the right kind of research and corresponding actions, your scores will soar and your company will flourish.