Don’t Make This Silly Mistake With Your Business Credit Report
Your Business Credit Report has a tremendous effect on the financial success of your business. Without a strong business credit score and business credit report, you will not have access to the capital you need to take advantage of growth opportunities. Even if you do have access to capital, it may be a smaller amount than you need or at a higher interest rate that you cannot afford.
Eventually, not having a strong business credit score and business credit report will drag your business down. So you do everything right to make sure that your business credit report and business credit score are flawless.
You make sure to pay all of your bills on time. Sometimes it may be very hard, and maybe you have been forced to take a reduced salary. However, you know how important your business credit score and business credit report are, not to mention the relationship with your financial partners and industry suppliers!
You make sure not to spend too much of your credit limit – aiming for a maximum credit utilization ratio of around 30%. At the same time, you make sure to have access to a large amount of credit. You have requested credit limit increases from your business credit card companies, even though you did not plan to use the additional credit.
You paid off as much debt as possible, while not necessarily actually closing that unused credit card account. You know that while it is important to have less debt, it is also important to show a long credit history. That card your business has held for ten years has a very valuable history even if you do not need to use the credit itself.
So basically, you have done pretty much everything right. Your business credit report and business credit score should be absolutely flawless. Well done.
Not so fast! There’s just one problem. Just because it should be flawless does not mean that it is. Have you checked it? No? Uh-oh, you just committed a very common, silly mistake with your business credit report. While it may be a silly mistake, it could have serious consequences.
Why would you check your business credit report if you have done everything right? Well first of all, there are lots of factors that go into this report, and it is possible that there is something you could have done better. After all, it is pretty hard to be perfect. Maybe a contractor put a lien on your business even though you paid them as agreed, but they missed something on their end. Who knows? The only way you can discover potential curveballs is by actually reading your business credit report.
Even if it ends up that you did everything absolutely right, credit bureaus are also not perfect. Sometimes they make mistakes and might include the wrong information in your credit report. Since they know they make mistakes, they have processes in place to correct them. However, they need you to let them know. Worse yet, someone could be committing identity theft, and reviewing your business credit report could alert you to the issue.
You may be thinking that you do not want to spend the money on getting your business credit report. Unlike consumer credit reports, there is no obligation for credit bureaus to provide a business credit report annually without cost. Well, if you sign up for CreditPush, we can give you a business credit report for free. We will even help you improve your score. Ready to read your business credit report?