Just as individuals have personal credit scores, businesses have corporate credit scores they use to
obtain loans and make purchases. The benefit of corporate credit is that the company owner isn’t
personally liable for the debt. Their personal credit score doesn’t play a role in the company’s ability to
obtain new loans or take on debt. However, a high personal credit score can make the process of
obtaining corporate credit in the first place a whole lot easier. Here are seven ways to boost your
personal score and positively impact your chances for obtaining corporate credit.
1. Use a credit reporting company.
Credit reporting can be invaluable when it comes to maintaining a clean and accurate credit report. A
credit reporting service will give you regular updates on the status of your credit health and may even
alert you if something negative appears on your report. The downside, though, is that there are
countless “credit reporting services” that are actually scams. Do a bit of research to make sure you’re
signing on with a reputable company.
2. Understand what goes into your credit report.
Read up on the basics of credit and credit reporting so you actually understand the data you’re looking
at each month.
3. Don’t be more than 30 days late on payments.
Although it’s never a good idea to be at all late on making a bill payment, the threshold for when it
begins to affect your credit is usually 30 days. At this point, your credit score may begin to drop, and
you’ll have a late payment notice that will stay on your report for anywhere from nine months to several
4. Know what you owe at all times.
Your debt-to-credit utilization is a ratio that shows how much of your credit line you’re actually using. It
makes sense that the less debt you have, the lower that ratio is. Using more than 50% of your allotted
credit limit can negatively impact your credit score, while using 30% or less will positively impact your
5. Keep accounts open and in use.
If you have an account that’s been open for many years, it’s a good idea to keep it that way, even if you
don’t really need it anymore. Every now and then, use that account to cover a small expense, then pay it
off immediately. You’ll reap the benefits associated with having a longtime account in good standing.
6. Use “good” credit.
Mortgages and auto loans are perfect examples of “good” lines of credit. They show stability and your
ability to make large payments month after month. Department store credit cards, on the other hand,
are typically considered “bad” credit, as they come with high interest rates and can be associated with
impulsive decision making at the cash register.
7. Keep new credit inquiries to a minimum.
This should go without saying, but don’t apply for new credit unless you absolutely need it. Say ‘no’ to
special offers and those shiny looking cards that come in the mail with your name on them.