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Credit Diva Answers: Do I Need a Business Credit Score?

Written by Credit Diva of Dallas | Feb 11, 2021 2:00:00 PM

Bad credit can affect everything about your life—including your business if you own your own company. We've talked about the importance of monitoring your credit for credit repair, McKinney business owners—but does that also apply to a business credit score? 

Do you need a business credit score? If you own a business, your business credit score is critical to maintain—just like your personal credit score. However, when starting a new business, you might not have a business credit report for lenders to evaluate in the early stages of your entrepreneurial efforts. 

What should business owners understand about business credit? Learn more from Credit Diva of Dallas!

What Is a Business Credit Report?

  • Agencies evaluate the credit history of businesses, much like they review and score consumer credit.
  • Credit bureaus (Equifax, Experian, and Dun & Bradstreet) rate the financial habits and assess the credit risks of companies.
  • They then assign a score to determine how creditworthy your business is. 

With a bad credit report, you'll struggle to qualify for business loans and funding for your McKinney company. Bad business credit can also lead to liens—and restrict your ability to run your business and generate income. If you struggle to maintain good credit through your consumer habits, it's important to improve those habits—before carrying them over to your business. 

Focus on Your Consumer Credit When Starting a Business

Starting a new business can be an excellent way to generate more income during the pandemic (or anytime). However, in the early stages of your business, your consumer credit score could have a more significant impact on your business until you build (and maintain) good business credit for your company.

  • If you plan to start a new business, start by reviewing your consumer credit score.
  • With a bad credit reportyou'll struggle to find business loans with a manageable interest rate—or qualify for lending at all.
  • Utility companies might also require additional deposits to provide services to your business location if you have bad credit. 

Credit repair McKinney offers could be the best first step toward establishing a new business. You don't need a business credit score to start a business, but you'll have a better start to your new venture with good consumer credit and better financial habits. 

Take Steps to Improve Your Credit

Don't give up on your dream business if you have bad credit! While it can take longer to repair your credit during tough economic times, starting now gets you there sooner than delaying credit repair, Mckinney! If you're overwhelmed by the challenge, your Credit Divas are here to help.

  • As a credit repair company, we can help you review your credit report and understand the issues damaging your score.
  • We'll then craft you a custom credit repair plan to boost your credit score sooner rather than later. 

With a better consumer credit score, you're set up for better success to start your new business in McKinney!

Maintaining Good Business Credit Depends on You

Take what you learn about maintaining better credit and transfer those principles and habits to the financial aspects of your new business. 

To build good business credit:

Businesses with good credit can find better financial resources to weather difficult economic times—or grow when the time is right. Start on the right foot and work hard to maintain good credit for your business!

The Right Credit Repair Can Help Improve Business Credit

If you already have a business with bad credit, it's time for credit repair in McKinney! Let the team at Credit Diva of Dallas review your business credit report and help you fix credit issues to get your credit score back on track. Contact us to get started!