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How to improve your credit score
How can I improve my business credit rating?
Having a good credit score is important, as a low credit rating can stop you from switching energy suppliers, insurers and you can be charged higher interest rates by lenders. Here are a few quick tips to help improve your score:
Pay bills on time If you make late payments the creditor could report you, so it’s important to stay on top of your bill due dates.
Avoid closing accounts Even if you pay off your credit account, you shouldn’t close them and remove them from your credit report. This could limit the amount of credit offered to you in the future.
Use credit to build a credit history To show that you’re able to pay credit back on time, you’ll need to open credit accounts such as credit cards and loans.
Limit credit usage and keep debt levels low Owing large amounts of money to banks and other lenders could have a negative impact on your credit rating. Although loans can be useful to help get your business off the ground, it’s important to keep your debt low.
Correct banking mistakes Even the smallest errors, such as a wrong address can have a negative impact on your credit rating. It’s important that you correct any mistake on your credit report straight away.
Keep a close eye on your business credit rating Stay on top of your credit rating. Many business owners don’t know their company’s credit score, but to ensure there are no mistakes - you should monitor it regularly.
You can check your credit score using Experian.