As with any loan, you’ll want to ensure that your business credit score is in good standing before you apply for any kind of business loan. Not only does this help your chances of getting approved, it can also help you lower the interest rate you receive.
Our bankers at Cornerstone Bank have been in the industry for quite some time, so we understand that improving your business credit may be easier said than done. However, we’re always here to help answer your business questions, including ways to boost your credit.
Read on to learn more about how to improve your credit to help you get the best business loan possible.
Keep an eye out on your credit cards
If you own a business, you probably have a business credit card. This credit card builds a credit score that’s separate from your personal credit score. So just because you have a high personal credit, doesn’t mean you’ll get a business loan.
That means it is very important to pay off your business credit card on time each month. If you need to consolidate cards to stay on track, definitely do so. After a while, a strong record of paying off your balance will make your score stronger.
Don’t borrow more than you need
There are times when you may need a loan such as an equipment loan to help your business. It may be tempting to borrow more than you need just in case, but that’s not always the best choice. In fact, over-borrowing can lead to higher monthly payments. If you can’t make those monthly payments, that could definitely hurt your credit and pull you deeper into a debt hole.
Pay bills early when you can
When you pay bills early, you give yourself an extra cushion. For example, if business is going super well, instead of splurging, get ahead of the bill game. That way, if things slow down a bit, you’ve already paid a couple of months in advance. As a result, you reduce your risk of being late on monthly credit card payments or even skipping months altogether. You can also make an additional payment on your credit card before your statement comes, which will help reduce our accrued interest and keep you on track for paying off your balance.
Learn more about how to improve your credit with Cornerstone Bank.
Whenever you’re ready to apply for a business loan, our team is always here to help you prepare in any way you need.
Since 2001, we have been a primary resource for businesses across the Kansas CIty metro and the country. We take pride in watching our customers thrive, no matter how big or small the company.
For more information about improving your business credit score, visit our Overland Park office or give us a call at 913-239-8100 to let us know how we can help.