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Are there any other ways to build good credit besides paying credit card and loan bills on time?
What strategies—if any—would you suggest to someone trying to establish creditworthiness?
Best Answer
- Recommended by:
- Corina McCoy
1) Make sure your credit files are accurate with dnb.com and http://www.experian.com/small-business/services.jsp. There are a few other industry specific business credit bureaus too, so don't overlook them if you are in an industry that has one.
2) Self report your financial statements when the credit bureau allows and your financial statements look good. Even though it is self reported data, it helps creditors make positive decisions on extending your company credit.
2) Find at least 3 trade creditors that report your payment history to one of the above credit bureaus. Establish net 30 terms and pay on time.
3) Building and especially repairing business credit takes time patience and attention to detail. Don't believe the companies that want to charge you money to "fix" your credit quickly. 99% of them are scams
***disclosure*** I am a freelance writer for AllBusiness.com, a DNB.com company.
1) Check your credit report regularly and dispute any inaccurate information.
2) Ask your current creditors to increase your credit lines which will lower your utilization.
3) Look into becoming an authorized user on a card which will report to the credit bureaus
4) Take out a secured loan in order to add positive tradeline history to your account
5) Look into hiring a credit repair agency, but research the laws which give guidance to credit repair agencies.
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Related Activity
1. Look into getting store credit cards. As you pay on time each month that information will be reported to the credit bureau.
2. Take out a car loan. There are lot of good deals out there. You may be able to trade your car in for a nicer one and keep the payments low.
3. Review your credit bureau report once a year or more and dispute information that has expired or that is inaccurate. Set up a file so you can refer to the information you need easily.
4. Ask a family member to co-sign a loan for you. By using their credit you can help re-establish yours.