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How to establish credit

Discussion in 'Business Fundamentals' started by jbutch83, May 5, 2003.

  1. jbutch83

    jbutch83 Senior Member
    Messages: 227

    I am wondering how can I establish credit for my business. My personal credit rating is not that great, just something that I need to work on. I want to be able to generate credit for my business. We do have accounts set up with several local businesses and supplies, and have always paid on time. Just wondering if anyone has any good advice for me.


  2. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    If you're a sole proprietor, your personal credit will directly affect your business credit. The only thing that will repair any credit is TIME. Any credit report is based on how many late payments there are and how old. Also, any bankruptcies (what type, how many years ago) and any write-offs. The best way to repair credit is to show creditworthiness by a history of on-time payment and that takes TIME. Avoid any companies that claim they can repair your credit - they are total ripoffs. The tactics they use will be, at best, borderline legal and some will be downright illegal. Again, nothing can repair credit except TIME and your company credit and personal credit are directly related.

    Do you know that the local businesses are reporting your business' credit to any credit bureau? Many small places like that don't which won't help your credit. Best way to find out is to buy a credit report or you can apply for credit, then request a credit report for free if you're denied. Check with your local bank, but I think you can request a credit report for about $6.
  3. ToyotaPower

    ToyotaPower Senior Member
    Messages: 129

    You can search the Internet for a credit rating company to find out how good or bad your credit rating is...

    Then if applying for a credit card or just credit explain in writing what the circumstances were for that specific credit problem on your credit report.

    It's nice to know what on your credit report and it probably cost around 10.00 to give it over the Internet.