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How to bolster your business credit score
Business credit bureaus gather information about your credit transactions and compile the information to form your company's business credit report. This report will determine if banks want to grant your credit and just how much credit they will be willing to give you. So how can you increase your business credit score? There are many different factors that can affect your business credit score. Your score is ranged from a 0 to 100 with anything above a 75 being a high score. Your business credit score can be affected by the amount of available credit you have on your bank loans and credit cards. As well as the length of time you have had a credit profile and the amount of inquiry's made on your account.
The Paydex index is called the "Dunn and Bradstreet Paydex" score. It is a number of how your company pays its bills over the course of the last year and is reported to the Dunn and Bradstreet by various vendors. The Dunn and Bradstreet Paydex score is rated on a scale of 1 to 100, the higher the number, the better payment performance your company has. Knowing how to increase your Paydex score or knowing how to establish one take a few steps. -
The Paydex information plays an important role in knowing about your business credit score. As the Paydex plan states, you need to know your payment patterns and pay your bills before they are generated. Another way to increase your business credit score is to comply with the business credit market requirements. Not being in compliance with the credit market can raise red flags with both the credit bureaus and grantors. The market requirement flags can be small things like obtaining a business license or a phone line. If you have not set up the proper steps to set up your company, most businesses will not grant credit to you. Never miss-manage your debt. This is the most important factor to take into consideration when you are looking to improve your business credit score. Creditors will look at the way you make your payments. If you ever have trouble making your monthly payments, be prepared for that to negatively affect your credit score. Be sure you always carry credit. If you decide you do not like credit cards, that is fine, but you do need to keep your account active. Take the proper steps to watch your business credit score closely so you don't start to see it slipping. Just like your personal credit score, the higher the number, the better it is.
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