Having a good credit score is essential for your business’s short- and long-term financial health. Credit scores are used to determine your borrowing capacity and can also influence your interest rates on loans, car leases, and other financing products.
To be able to qualify for a business financing loan, your credit score must be in the good range (760 or higher). Here are some credit score-improving tips for people with low credit scores:
Pay Your Bills on Time
One of the quickest ways to improve your credit score is by showing lenders that you are a responsible borrower. Make sure you pay all your bills on time and don’t use debt to finance luxury items or lifestyle choices. This will also help you avoid late payments and penalties damaging your credit score.
Checking Credit Report
Regularly check your credit report to make sure there are no negative items that could damage your score. Your credit report includes information about your credit history, including the amounts you’ve borrowed and paid back, as well as any accounts that have been closed or have had negative activity reported to credit agencies.
In case you find any errors or discrepancies on your credit report, take appropriate action to resolve the issue.
Always Use a Secured Credit Card
Another way to improve your credit score is by using secured credit cards. Secured credit cards require a down payment of at least two percent of the card’s value, which helps you build up your credit history with the credit card company.
Merchant Cash Advances
Another way to boost your credit score is by using merchant cash advances. Taking out small business loans and using them to finance a variety of expenses, like payroll and inventory, can also help your business expand and grow while also boosting your credit score.
Avoid Closing Old Accounts
When you close an account, your credit score suffers. Some credit bureaus reward good credit history, and if you have accounts on a regular basis, they will rate you higher for better opportunities for credit.
If you’re looking for flexible business loan packages in NYC, you’ve come to the right place! At Whitestone Fund, we offer business financing plans, including standard small business loans and merchant cash advances.
Contact our business loan agents to get started now!
