If you pay your bills on time, you probably assumed that you have good credit scores. Why don’t you?
You can be surprised.
It is not uncommon for business owners who think they have a credit history or a good business credit to have a credit history or low credit score.
And it may not be because of the bad credit you are associated with the ordinary criminals that you are associated with late.
Here are the common problems that can bring you down Credit score And what you can do about them.
1 Tragedy
Many business owners do not have many (or any) accounts displayed in their business credit report. However, except the accounts that show on-time payment, it is difficult for the beurus or ND to calculate the credit score.
The reasons for the lack of history of paying this money are countless. Some ND makers and vendors do not report all the big business credit and bius. Some simply report negative information.
And something Debt Anti -they do not want to take the risk of taking the debt that they may or may not repay so they can avoid credit together.
If you are in the next group, the good news is that you do not have to use the debt to create a credit credit. Trade line And like other accounts like business charge cards, you can use a small business LOAN to establish a positive payment history without taking loan.
The most effective way to solve this problem is to open accounts with the reporting companies reporting business credit. Net -30 seller accounts are especially helpful for people with new business or limited credit credit. These suppliers allows you to buy the essential products of your business (shipping boxes, or door supplies) and pay for them within 30 days, give you time to sell inventory or generate earnings before paying.
Business credit cards and business charge cards can help create your credit history. Most large card issues report at least one commercial credit bureau. These cards give you additional benefits to help you separate personal and business expenses that are important for both Credit building and taxes Objective
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2 Incorrect information
A few years ago, an NAV customer who owned an insurance company was having trouble getting Insurance for her own businessThe He has discovered that his business credit report contains information about other businesses, including similar names. That business was not good credit. Once he is straight, he was able to qualify for the insurance he needed.
If you think about how many businesses are similar names or how many Business is open and closed every yearYou can see how the mixes occur. If not the business owner – which you – verifying the history of their credit and do not review the information contained in it, those mistakes cannot be detected for months or years.
Check your credit reports for obvious mistakes like any address or employer Identification Number (EIN) that you do not recognize. Pay attention to details such as the industrial classification codes (SIC/NAIC) and other identifying information listed.
Also focus on the old public records (eg UCC filing for the loans you paid), the history of the wrong payment, or the accounts related to your business you don’t believe.
Small mistakes cannot directly affect your scores but indicate bigger problems.
If you find errors, argue them immediately with the Credit Bureau. The process varies by the bureau. Keep in mind that the commercial credit industry is not controlled by a fair credit report like personal credit, so the dispute process can be less standard than what you use.
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3 Negative information from disputes
If you have a dispute with you on any of your ordered with your supplier, they may refuse to pay until they make it right. Or perhaps an employee misused a company’s credit card.
Disputes are sometimes reported to the business of the business and it can affect your payment history and credit score.
Business credit score gives heavy emphasis on the history of paying – even more than a personal credit score. Some scoring models are often measured up to the day -to -day payment period, with the award of starting payment.
It is to say that you should never argue for a purchase.
But if you find yourself in a dispute with a seller, try to keep communication open and do all things. Consider the partial payment for the undisputed part of a shipment to show good trust when you solve the problem. If a seller reports on the negative payment information during a valid dispute, contact them directly to explain the situation and request to correct the information they reported.
Keep in mind that business relationships are important, so contact the dispute professionally and work towards mutual acceptable solutions whenever possible. The conditions of more favorable credit can occur in the future in good condition with suppliers.
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4 .. Business fraud and theft of identity
Theft of business identity Most business owners are more common than realizing. It is a growing problem enrolled by companies such as CrebsSssquest and National Cybercquirement Society (NCSS).
I personally was the victim of business identity. If I haven’t examined my business and personal credit reports I suspect that I knew until it was too long before it happened. Who knows how much damage it would have been at the moment?
Business Identity Thieves can open your business information fraud accounts, secure financing or purchase that they never want to pay. It may take months or even a few years to solve the damage perfectly.
In his podcast, What hack? Adam Levin, the owner of the business, interviewed Andy Fam, under which $ 2.7 million was invested. It took a few years to get it back to the Fam.
Business Identity Warning Symptoms include unexpected changes in your credit scores, searches from the companies you have not traded, strangers present in your report, or bills and collection notifications for the accounts you have not opened. If you notice any of these red flags, work quickly to reduce the damage.
You can’t prevent all types of IDs, but the sooner you hold it, the sooner you can stop it. Keep your business information as protected as possible and spread the sensitive documents.
Most importantly, Monitor your business and personal creditThe Pay attention to the warnings that may notify significant changes to your business credit profile. It can help you catch potential fraud before you have permanently damage your credit.
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Next step
This is a lack of credit accounts that appear in your credit reports, mistakes or worse, if you want to improve your business’s credit account, the first step is to find out that it is not as strong as your choice. Then take the above steps to get it on the track.
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