Credit Repair Tips for Small Businesses

Getting your business’ credit back in good standing is a challenging endeavor, and you are not going to be able to repair major damage just by making a few timely payments on active tradelines. To improve your credit score by a decent percentage, you need to form a multi-tiered action plan. Here are a few of the most important things you need to do to boost your business’ credit.

Establish New Tradelines

Your business credit score is the product of all of the activity in the tradelines in your detailed credit report. If most or all of your active tradelines have a problematic payment history or you have used up an excessive amount of individual credit lines, pulling your score up by making timely payments and gradually reducing your outstanding obligations to creditors is going to take a considerable length of time.

Adding new tradelines to your report can quicken your progress with credit repair. Introducing new lines of credit will increase your total available credit, giving you a better credit utilization ratio. Also, establishing multiple timely payment entries and avoiding negative remarks on tradelines enables you to build a stable track record of paying creditors.

Keep Accounts Open

Closing out accounts that you are not actively using might seem like a good way to stay organized. However, your credit report is one place where you should not worry about decluttering. Having a tradeline on your report that is not being updated with negative remarks is a good thing. This is true even if you don’t have to currently have to make payments on it. Ultimately, taking accounts that are in good standing off of your report would not help you. Work on adding tradelines instead of getting rid of them.

Monitor Credit

You have to be watchful over your score to ascertain whether your credit repair strategy is working well for you. Receiving updates from a credit monitoring service when there are changes to your score lets you when you’re making headway. Real-time notifications can also alert you to potential problems with your payment activity that are taking a toll on your score

Being vigilant about monitoring business credit and analyzing how your expense management practices affect it will help you restore your company’s creditworthiness. By bringing your score up, you can build a brighter financial outlook and gain access to more opportunities that will help you achieve your long-term goals for your company.