How to Build Business Credit with Bad Personal Credit
Earning a bad personal credit history sometimes is unavoidable or even inevitable to some entrepreneurs. When this happens, their business credit suffers.
What one should do when this happens? Read on and learn what are these tasks?
There comes a point in the life of an entrepreneur that one earns bad credit because of many reasons. This seems to be inevitable or cannot be avoided for some businessmen as there are many factors that affect the timely payment of loans acquired from banks. The major question now is how to rebuild one’s reputation and earn business credit after a slew of financial errors and mistakes. This issue is a major problem for some entrepreneurs who have fallen on the ravine of earning bad credit from banks. What then should be done by the businessman to remedy this problem and get him on the right track of building a new business credit?
Below are guidelines and tips on how to overturn this history of bad credit and start building one’s business credit:
Task One to Build Business Credit
One of the basic methods of building a business credit after a history of bad personal credit is separating one’s business from oneself. What does this mean? It means never using your social security number when applying for business credit. You can do this by applying for all required licenses for your business by using tax ID number of your business or company. So the quick way to do this is by getting first your business tax ID number.
Small Step to Build Business Credit
What is this small step in building business credit? It is starting off small. You can get trade credit from the company and businesses to whom you do business with. This is short of applying for a line of credit issued to your business name or tax ID number.
Slowly but Surely
Since you have already earned bad personal credit history, you must realize that this cannot be remedied overnight. So start slowly paying your trade credit in timely and regular basis. This is slow remedy but sure to build you a good business credit.
Paying Small Loans to Build Your Business Credit
Paying off small loans is sure would build your business credit in due time. Be resolute and determine that you pay off these small loans since paying them each time will make your credit grow in due time.
Do not Forget to Work on Your Bad Personal Credit
There will come a time that you will need your social security number or your personal credit history when you need larger banks for your loans. So before it happens work on it before the need arise.
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