How to Create Business Credit
- 1). Form your business as a corporation or LLC. Corporations and LLCs keep personal and business credit information and scores separate, and thus the business will not interfere with your personal credit score. Obtain an Employer Identification Number (EIN) and Federal Identification Number (FIN) from the IRS when forming your business into a corporation or LLC.
- 2). Register with the business credit bureaus. The four business credit bureaus are: Dun & Bradstreet, Experian Business, Equifax Business and Business Credit USA. Contact each bureau and they will guide you through the process of registration.
- 3). Ensure that you are in compliance with all credit market regulations. Not having a phone line or business license, for example, can be a basis for credit rejection. Ensure that you have all the required business licenses and meet all business requirements for your state.
- 4). Copy your business's financial statements and have a copy of your business plan. Credit lenders require both of these.
- 5). Look for credit lenders that will grant you business credit without a personal credit check. Unless your personal credit is 680 or above, it is wise to avoid the dangers of a personal credit check when dealing with business credit. Ask each credit company whether they do personal credit checks or not.
- 6). Make payments on time. Avoid falling behind on your business credit payments, as this will lower your score and make it more difficult to apply for business credit in the future
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