Even though we all know how important it is to maintain a good business credit history, many of us still struggle with poor credit. If you’ve been turned down for a loan because of your credit history, you should know that it’s possible to repair your credit. This article will help you get started.
If you can get authorized user status on a business credit card account with a good payment history, don’t hesitate to do so. If you pay the bill on time, the account holder’s history becomes yours. Be aware, however, that it also works in reverse; if the account holder defaults, your credit will suffer as well.
Keep your first account open. Whatever business credit account you have had open the longest, is the best one to keep on your report. Don’t close this account because the limit is too low or the rate is too high. Try to get a higher credit limit, or ask for a lower interest rate, but even if they won’t give that to you, keep the card and keep using it. The longer track record you have with an account, the more it will affect your score in a positive way.
If your debts are overwhelming you and are unable to get creditors to work with you, consider consumer credit counseling. Consumer credit counseling will work with you and your creditors to help you set-up a payment plan that works. They will also work with your creditors to lower your interest rates.
Try to negotiate with your creditors about the amount of interest you’ll pay on an old debt. Some companies that charge high interest rates are running the risk of having those rates challenged by consumers. You did sign a contract saying that you would pay off the debt. If you want to sue small business tax credit hiring veterans, you need to state your claim that the interest rates are too high.
If you file bankruptcy, ignore the calls you receive afterwards from credit improvement firms. A bankruptcy is a public record and many scams are run by companies preying on your weakness after having to file a bankruptcy. Avoid this issue by only working with companies that you make the initial contact with.
When using a commercial credit restoration service, be sure not to pay any money upfront for these services. It is unlawful for a company to ask you for any money until they have proven that they have given you the results they promised when you signed your contract. The results can be seen in your credit report issued by the credit bureau, and this could take six months or more once the corrections were made.
Pay off your business credit card bill each month. Carrying a balance on your credit card means that you will wind up paying interest. The result is that in the long run you will pay much more for the items than you think. Only charge items that you know you can pay for at the end of the month and you will not have to pay interest.
Just knowing that it’s possible to escape from the trap of bad credit can help to motivate you to get started. Once you’ve started applying the techniques you’ve learned from this article, you’ll start to see results. A better business credit history and all of the advantages it brings, will soon be yours.