Page 24 - Everything You Need To Know About Personal and Business Credit by Adrean Yancy

Everything You Need To Know Abour Personal & Business Credit

Get your EIN: If you have bad personal credit and are thinking of building
your business credit to get access to loans for your business, you need to
get your Employer Identi cation Number (EIN). Then your EIN will enable
you to apply for a Business savings account.

Create a Business Pro le with Dun and Bradstreet: Apply for a DUNS
number with Dun and Bradstreet to create your business credit pro le.

Vendor Tradelines: After establishing the rst two steps above, the best

way to access funds for your business is to apply for vendor tradelines.
But, you must have in mind the strategy for choosing a vendor that
reports to the credit bureaus. This way, you will simultaneously build your
business credit.

Get a Business Credit Card: This might be a little challenging, but getting
a business credit card will help build your business credit pro le history.
This will be possible as long as your account history and activity are
reported.

Alternatively, if it is a bit di cult to get a business card due to bad personal
credit, you can consider getting a secured card. A secured card requires
that you make a cash deposit, unlike a regular business credit card that

does not require a deposit. Whether you are applying for a regular
business card or the secured card, ensure the company is reporting your
history and activity to the credit bureaus.

A Working Capital Loan: This loan is typically for short-term use. Capital
loans are given to businesses to help cover their daily business
operations. More so, this type of loan o er is extended to those with
personal bad credit. It helps to build your business credit as long as you
pay regularly, or even better before when due.

Always Review your Business Credit Report: While putting all the above
methods into practice is enough to help build your credit with a bad
report, it won't pay o when errors are reported mistakenly or otherwise.
Hence, you should visit and review your report for errors and anything

that can damage your credit.

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