So you've been trying to build your business credit for a while now.
You see others do it. And it seems like everyone makes it look so easy.
But for some reason, success keeps eluding you. Every time you get close to improving your credit, something happens and you end up back where you started.
Not this time.
Because this time you're going to be armed with the same tips, tricks, and secrets that the most financial planners know and teach. So give these tips a try and see if they don't work for you too...
Tip 1: Never miss a payment on your personal loan payments.
WARNING: A lot of people make the mistake of getting behind on their payments and this drastically will affect your credit score and decrease your chances of being approved for business credit. One way to avoid this mistake to setup automatic payments of the minimum due to cover interest two weeks prior to the due date, and make any additional payments towards the principal amount before the due date. Making two separate payments for interest and principal amounts will pay down your loan principal a lot faster.
Tip 2: Avoid payday loans and loan shark deals.
Bonus Tip: Loans with high interest rates should be avoided entirely, however if you do need to finance a purchase, try using a credit card with a low interest rate for large purchases or applying for store credit with zero interest promotions. Credit can be used for beneficial purposes, if used responsibly. If you fail to pay high interest loans, they can drastically harm your credit score.
Tip 3: Be sure to ask your bank about secured business credit loans.
Tip 4: Don't forget to keep your DTI ratio low.
Tip 5: Do be sure to apply for cash-back rewards cards for additional saving benefits.
Example: Cash-back rewards are great when you don't keep a balance and can benefit from the additional savings when you aren't paying interest.
Tip 6: Allow time to build your personal credit standing before applying for business credit.
Tip 7: Let your financial advisor help you choose the best loan terms.
Tip 8: Create an EIN number before you can apply for business credit.
NOTE: You will need to register your business with the IRS prior to applying for business loans.
Tip 9: Take any documents, such as EIN Number, Licenses, Articles of Organization from your state, etc. to your bank when you open a Business Checking Account.
Tip 10: Try to keep a good relationship with your bank prior to applying for credit.
Example: Keep a positive balance in your Business Checking/Savings Accounts and try not to overdraft your account too often.
In sum: Building business credit is actually fairly simple when you apply the above 10 tips. So let me leave you with one last tip...
Start building your personal credit with store cards, secured and unsecured credit cards now and you will be funding your own home business in no time...
So get to it - you're going to be glad you did!