Credit Repair & Loan Prep

Enhance your personal and business credit scores with our expert guidance. Secure the best loan terms and financial opportunities by preparing your credit profile today.

Select From a Wide Variety of Personal Credit Repair & Business Loan Prep Options

Improve Your Credit Standing & Obtain the Financing That’s Right For You

60Day Capital puts our business financing experience to work to improve credit standings and acquire financing for those who otherwise find credit or loans out of reach. We provide expert advice, guidance, and resources that have helped 76% of our clients successfully secure home loans, small business loans, lines of credit, and more. Talk 1-on-1 with a Credit & Lending specialist today to get started on a tailored plan that can help you achieve your financial goals.

Business Credit Products

Mortgage & Loan Prep

Provide 90 Days of service for the items listed below:

Update all personal information to reflect accurately with all three bureau’s.
Request validation for all negatively reporting items on credit.
Dispute all negatively reported items on credit for accuracy and compliance with FDCPA, FCRA and statute of limitations.
Credit Building Consultation. Teaching you how to maximize your potential score increase.

STARTING AMOUNT:

$795

Student Loan Consolidation

Provide 90 Days of service for the items listed below:

Federal Student aid consultation. Including student loan total educational indebtedness and repayment options.
Federal Direct Consolidation Application.
Request Income-Based REPAY (IBR) or fixed Graduated Repayments. Check Public service loan forgiveness (PSLF) Eligibility.
Once Consolidated, Update Previous student loans with all Credit bureaus to reflect as satisfied.
Plus everything under Mortgage Preparation.

STARTING AMOUNT:

$795

The Inquirer

Provide 90 Days of service for the items listed below:

Credit building consultation.
Update all personal information to reflect accurately with all three bureaus.
Request validation for all negatively reporting items directly with the creditors for accuracy and compliance with FDCPA, FCRA and statute of limitations.
Request 1099-C directly from the creditors for open balance charges off. Remove unwanted authorized users.
Remove unauthorized Credit inquiries.
Buffering credit inquiries made for the same financing purpose, in a short time frame.
“Experian Boost” Consultation to strengthen the most commonly pulled bureau for small business owners.

STARTING AMOUNT:

$1,350

Business Funding Prep

Provide 90 Days of service for the items listed below:

Credit building consultation.
Update all personal information to reflect accurately with all three bureaus.
Request validation for all negatively reporting items directly with the creditors for accuracy and compliance with FDCPA, FCRA and statute of limitations.
Request 1099-C directly from the creditors for open balance charges off. Remove unwanted authorized users.
Remove unauthorized Credit inquiries.
Buffering credit inquiries made for the same financing purpose, in a short time frame.
“Experian Boost” Consultation to strengthen the most commonly pulled bureau for small business owners.

STARTING AMOUNT:

$1,350

Credit Ready Business

Provide 90 Days of service for the items listed below:

Complete a 21-point lending compliance checklist to ensure accurate and current information.
Update All company industry, SIC code, Employer count, competitors, vendors, and financials with D&B
Dispute Incorrect information such as UCC liens, Tax liens, and other negatively reporting items.
Helping obtain business credit footprint by initially opening first reporting trade accounts such as new business credit cards and vendors.

STARTING AMOUNT:

$1,550

StartUp Capital Prep

Provide 90 Days of service for the items listed below:

Form A New LLC Or S-Corp.
Register your Business Credit with Experian, Equifax, and Dunn & Bradstreet using SBA- Lender Best practices.
Business funding prep.
Plus everything is under Mortgage Preparation.

STARTING AMOUNT:

$1,850

SBA & Term Loan Prep

Provide 90 Days of service for the items listed below:

Complete a 21-point lending compliance checklist to ensure accurate and current information.
Order Duns Number
Update All company industry, SIC code, Employer count, competitors, vendors, and financials with D&B
Order Business Credit Reports with D&B, Experian, and Equifax.
Complete a compliance update with Experian and Equifax databases using the correct information.
Dispute Incorrect information such as UCC liens, Tax liens, and other negatively reporting items.
Helping obtain business credit footprint by initially opening first reporting trade accounts such as new business credit cards and vendors.
Provide a list of Companies that allow for Business Net21, Net30, and Net60 payments.
Business Loan and Corporate Funding Consultations.
SBA Loan Preparation and SBA Grant Prep for Minority and Women’s Small Business Grants.
Provide resources to help businesses utilize existing cash flow and manage company finances in a more lending-friendly fashion.

STARTING AMOUNT:

$2,250

Federal Contracting Prep

Provide 90 Days of service for the items listed below:

MBE, Veteran & Women-owned small business credit preparation package.
WOSB Dunn & Bradstreet Star.
WOSB SBA 7(a) cert.
SBA & term loan prep included.

STARTING AMOUNT:

Contact Us

How Does Credit Work? The Ultimate Credit Score Guide

Credit plays an increasingly bigger role in your life as you advance your career and reach for more milestones. Think about all the things you might want in the near future—everything from a house to a business loan to a new cell phone plan. Your ability to access all three would depend on your personal credit score. If you use your credit wisely, your financial limitations will put fewer restrictions on your purchases and other goals. Simply put, perhaps the greatest reward of proper credit management is always having more credit at your disposal.

Many people, especially business owners, believe that understanding credit means knowing how to achieve an excellent credit score. But the actions that produce excellent credit aren’t the only actions that affect your credit. When you know how credit works in general, you can make smarter spending decisions and grow your business and credit simultaneously.

In this guide, we’ll explain the different types of credit, the components of your credit score, and how to improve and build credit throughout your career.

How Credit Works In General

Credit bureaus compile your credit report by collecting information about your credit usage once you open a credit card or apply for a loan. Five key elements of this information are used to calculate your numerical credit score: payment history, credit utilization, credit mix, length of credit history, and applications for new credit. Your credit score determines your ability to qualify for various forms of financing.

How Does Credit Work? Borrowing Fundamentals

Consumers acquire credit by borrowing money from financial institutions such as credit card vendors, banks, or business lenders. The institution, or “creditor,” reports the amount borrowed, the agreed-upon repayment schedule, and the size of each payment to credit bureaus. This information then appears on the individual’s credit report. In addition to credit cards, applying for and repaying virtually any type of loan affects your credit score, whether it’s for your business, car, house, or college tuition.

Your credit score represents your ability to pay off debt. Financial institutions and property management companies review your credit score before approving your application to gauge the likelihood of you fulfilling the terms of the agreement, including the monthly payment size and the due date for paying off the full amount.

Business lenders place significant emphasis on credit scores because small businesses often fail. While this might seem unfair since you are applying for a business loan and not a personal loan, starting a business means accepting full responsibility for its potential failure. In essence, entrepreneurship is another personal financial venture.

Types of Credit

Though there are many types of credit agreements, there are two main types of credit accounts: installment credit accounts and revolving credit accounts. They differ primarily in their payment processing and how they are recorded on your credit report.

Installment Credit

Installment credit works similarly to a traditional business term loan. There is a specific due date and repayment schedule, often outlining the number of monthly payments needed to pay off the debt in full.

Common examples of installment credit accounts include car loans, student loans, and mortgages. These terms are long because the monthly payments are relatively small. In the initial years, your credit utilization ratio is likely to be high since you owe a significant amount and have only paid back a small portion. Towards the end of the term, your credit utilization ratio decreases significantly because you have much less to pay back. This decreasing balance towards the end of the term is a key feature of installment credit accounts.

Revolving Credit

Revolving credit is typically associated with credit cards and business lines of credit. You have a credit limit and must make minimum monthly payments starting as soon as you use the available funds. Interest accrues every month if you maintain an outstanding balance. Borrowing more money increases your interest. You pay interest for the convenience of making large purchases without having to pay for most of it immediately.

When you repay what you owe, that money becomes available again. For example, if you have a $12,000 credit limit and use $10,000, you would have $2,000 left to use. If you then repay $8,000, you would have $10,000 available to use again.

This can be confusing and risky for those who use most of their credit but only make minimum monthly payments. In such cases, most of the payment goes towards interest, meaning you are not paying off as much of your balance as you might think.

Types of Borrowers

Creditors categorize borrowers into two main groups based on their credit card usage patterns: transactors and revolvers. Here’s how they differ:

Transactors

Transactors are borrowers who use their credit cards to make purchases but pay off the full balance every month, typically before the due date. By doing so, they avoid paying interest on their purchases. This responsible behavior not only saves them money but also helps maintain a healthy credit score. Transactors often open new credit accounts with the sole intention of maintaining this payment pattern, which can protect their credit scores from negative impacts.

Revolvers

Revolvers, on the other hand, carry a balance on their credit cards from month to month. They make smaller monthly payments relative to their outstanding balances and often accrue interest on the remaining balance. Revolvers tend to carry larger balances, sometimes in the thousands, which can make them more vulnerable to fluctuations in their credit scores. A missed payment or a high credit utilization rate could significantly impact their credit scores negatively.

While it’s possible for revolvers to maintain a good credit score, their financial situation and credit management practices can make their credit scores more sensitive to changes. Managing credit responsibly, regardless of whether you are a transactor or a revolver, is crucial for maintaining and improving your creditworthiness.

Why Do These Things Matter?

The previous sections on types of credit and types of borrowers provide additional insights that financial institutions review when assessing applications for credit cards, loans, mortgages, and other financial products.

As mentioned earlier, one critical factor in determining your credit score is “credit mix.” Some borrowers enhance their credit profile by managing both an installment account (such as a business term loan) and a revolving account (like a business line of credit) simultaneously. This strategic mix, along with demonstrating the “transactor” status—where borrowers consistently pay off their credit card balances in full each month—can impress credit bureaus and help protect your credit score. Understanding these distinctions is crucial because some individuals may overlook the importance of diversifying their credit accounts to strengthen their creditworthiness.

In summary, your borrower type and how you manage different types of credit provide valuable insights into your financial capability and responsibility as a borrower.

How Does Credit Work? Credit Bureaus and Credit Reports

Your credit report tells the story of how you’ve financed and managed significant milestones in life, such as buying a home or funding a wedding. Each person pursues these goals differently, and your financial decisions shape your credit history, which is detailed in your credit report.

However, this narrative isn’t something you write yourself. Instead, it’s compiled by the three main credit bureaus: Experian, Equifax, and TransUnion. These agencies gather and summarize information to provide financial institutions with the data they need to assess creditworthiness.

Each bureau has its own methods and timelines for collecting data. The information reported also varies based on which agencies receive reports from institutions like credit card vendors, business lenders, or mortgage companies. Despite these differences, credit reports from any bureau generally present similar information.

Under federal law, individuals are entitled to receive one free credit report per year from each bureau. Taking advantage of this opportunity is essential for managing your credit responsibly and understanding the factors influencing your current credit score.

All three bureaus use the FICO scoring system, ensuring consistency in how creditworthiness is evaluated across their reports.

How Does Credit Work? Calculating Your Credit Score

Your credit score distills all the details in your credit report into a three-digit number. This score allows institutions to quickly gauge how likely you are to make timely payments without delving into your entire credit history. It summarizes how long you’ve used credit, the types of accounts you’ve managed, and your track record in handling those responsibilities. A higher credit score indicates a greater likelihood of making payments on time.

To calculate credit scores, all credit bureaus use the FICO algorithm, ensuring consistency and reliability across the board. This algorithm considers various aspects of your credit history, making the process quite intricate.

The FICO Algorithm

The term “FICO” originates from the Fair Isaac Corporation, which developed the algorithm in the 1960s. Its primary function is to assess the probability of a borrower defaulting on debt payments within an 18-month timeframe. Therefore, individuals with lower credit scores are more likely to default, whereas those with higher scores are less likely to face this risk.

Credit scores range from a high of 850 to a low of 300:

Excellent: 740-850
Good: 680-739
Fair: 580-679
Poor: 500-579
High Risk/Untouchable: 499 and below

As long as your credit score falls within the “good” range, you should encounter minimal difficulty accessing business loans, new credit cards, and other financial products.

The exact components of the FICO algorithm remain undisclosed to the public. Thus, aside from the credit bureaus, few know the precise methodology used to calculate credit scores. However, the criteria involved are categorized into five main factors, each weighted differently:

Payment History (35%)

The most influential factor in your credit score is your history of making payments on time. Timely payments positively impact your score, while late or missed payments can significantly lower it. The impact of missed payments varies based on factors like how late they are and their frequency. Generally, a single missed payment can have a more severe effect if you have a high balance or frequently make minimum payments.
Late payments remain on your credit report for up to seven years. Establishing a consistent pattern of timely payments can gradually improve your score over time.
Amounts Owed (30%)

This category considers the total amount of credit you owe across all accounts and your credit utilization ratio—the proportion of your outstanding debt to your credit limits. Revolving accounts like credit cards typically have more impact on this ratio than installment accounts due to their flexibility in borrowing and repayment.
A healthy credit utilization ratio should ideally not exceed 30%. For example, if your credit limit is $20,000, maintaining a balance of no more than $6,000 demonstrates responsible credit management.
Length of Credit History (15%)

The length of time you’ve held credit accounts influences your score. A longer credit history provides more data for the FICO algorithm to assess your creditworthiness. For this reason, establishing and maintaining credit accounts over time is crucial for building a good credit score.
New Credit/Credit Inquiries (10%)

Opening new credit accounts and credit inquiries can temporarily lower your credit score. Multiple credit inquiries within a short period may signal to lenders that you are planning to take on additional debt. However, checking your own credit score does not impact your score. Lenders may perform soft credit pulls to minimize the impact on your credit when evaluating your creditworthiness.
Credit Mix (10%)

Having a diverse mix of credit accounts, such as credit cards, mortgages, and installment loans, demonstrates your ability to manage different types of credit responsibly. This factor provides a broader perspective of your credit management skills and can positively influence your score.

In summary, understanding these components helps you grasp how your credit score is evaluated and provides insights into managing your credit effectively.

How Does Credit Work? Fixing Errors On Your Credit Report

Errors can frequently occur on credit reports. Your report might mistakenly indicate that you owe more than you actually do or suggest a missed payment despite your flawless payment history. Without regular monitoring—at least once a year—you may not even be aware of these errors. It’s your responsibility to identify and correct any inaccuracies promptly. You can either contact the institution associated with the account or reach out to the credit bureau that generated the report.

Many borrowers hesitate to check their reports out of fear of discovering negative information. However, aside from maintaining timely payments, managing your credit utilization rate, and diversifying your accounts, regularly reviewing your credit report is crucial. Even if you believe everything is in order, verifying your report is essential to maintaining an excellent credit score.

What Is An Excellent Credit Score And How Do You Get It?

Your credit score stands as the primary determinant for securing a small business loan. Financial institutions prioritize it over factors like annual revenue and business longevity. While these aspects are crucial, they pale in comparison to the impact of your personal credit score. Without an excellent credit rating, obtaining substantial funds with favorable terms and low interest rates becomes exceedingly challenging.

Fortunately, maintaining and enhancing a stellar personal credit score is quite manageable. This guide will outline the best practices for improving your personal credit, detail which activities influence your credit rating, and explain the correlation between your personal credit score and your business credit score.

What Is The Best Possible Credit Score?

The highest achievable personal credit score is 850. While this number may seem daunting, it’s entirely within reach if you adhere to a few fundamental principles. However, depending on your specific needs, your credit score might not necessarily need to reach 850. In fact, a “good” credit score could be sufficient to secure the right business loan for you.

Nevertheless, there’s no harm in aiming to optimize your credit score as close to perfection as possible. Before diving into strategies on how to achieve this, let’s clarify what a personal credit score actually signifies:

What Does A Personal Credit Score Represent?

Many small business owners have multiple credit scores, including their VantageScore and business credit score. However, when it comes to meeting small business loan requirements, financial institutions primarily rely on your personal credit score.

A personal credit score is a numerical reflection of your ability to repay debts. It takes into account various types of debt, such as credit cards, mortgages, student loans, and business loans.

Why Do Institutions Care So Much About Personal Credit?

Initially, it might seem unfair for financial institutions to place such emphasis on an applicant’s personal credit score when applying for a business loan rather than a personal loan. However, small business owners bear ultimate responsibility for their business finances. In essence, a small business is often seen as another personal financial endeavor, akin to managing personal credit card debts, mortgages, or student loans.

From this perspective, an applicant’s track record with personal debts serves as a reliable indicator of how they might manage a small business loan. Unlike professions where expertise in one area may not correlate with personal financial management, small business owners are expected to demonstrate competence across all financial aspects. A business owner who struggles with personal credit card debt may face similar challenges in meeting obligations for a business loan.

While every institution has its own criteria and underwriting procedures, some are more accustomed to working with borrowers who have limited or poor credit histories. However, the most substantial loan amounts and favorable terms are typically reserved for borrowers with at least a good credit score.

Why Is Credit Score Used To Assess Risk?

Financial institutions take on a significant risk each time they approve a business loan: the risk of not being repaid on schedule. Conversely, business owners face multiple risks, such as whether their investments will yield expected returns and how loan repayments will affect their cash flow.

However, many institutions primarily focus on the risk of timely repayment. Business owners bear the responsibility for meeting these payments. To assess the likelihood of timely repayments, institutions evaluate the applicant’s track record in meeting financial obligations.

While requirements like time in business and annual revenue are typically achievable, having excellent personal credit is less common. A higher personal credit score expands the range of financial institutions available to borrowers.

How Is Your Credit Score Calculated?

The credit score scale ranges from 300 (lowest) to 850 (highest), categorized as follows:

Excellent: 740-850
Good: 680-739
Fair: 580-679
Poor: 500-579
High Risk/Untouchable: 499 and below

The three main credit bureaus—TransUnion, Equifax, and Experian—calculate credit scores using an algorithm developed by the Fair Isaac Corporation (FICO) in the 1960s. The term “FICO score” stems from this corporation.

While the specifics of the algorithm remain proprietary to these bureaus, they consider five key factors in their calculations, ranked from most to least important:

Payment history
Amounts owed
Length of credit history
New credit accounts
Types of credit used

Basic Principles For An Excellent Credit Score

Achieving excellent credit is straightforward for those who consistently make timely payments and manage various types of debt responsibly.

Yet, many business owners struggle with poor credit despite knowing the basics. The challenge lies in maintaining adherence to these principles consistently.

Here are key guidelines to avoid pitfalls:

Pay Your Bills On Time

Timely payments are paramount as payment history heavily influences your credit score. Ensuring all monthly payments are made in full and on time is crucial. Even managing a few types of debt with punctuality can significantly bolster your credit rating. Missing just one payment, however, can have substantial consequences. For instance, someone with a high credit score could see it plummet by over 100 points if a payment is 30 days late.

Automate Payments

Given the critical importance of payment history, automating payments is a proactive step to avoid missing deadlines. Setting up automatic deposits with creditors can help ensure you never miss a payment, especially as your debt obligations grow. While managing payments may seem manageable now, automating them prepares you for future financial responsibilities.

Another effective strategy is to prioritize timely payments across all bills, not just credit obligations. Consistently paying rent and utilities on time fosters a habit of punctuality, which extends to creditor payments.

Explore Alternatives to Default

During crises, business owners may face difficulties meeting loan obligations as funds are redirected to sustain operations. In such situations, maintaining a good credit score might not be the immediate priority.

Traditionally, defaulting on loans seemed like the only recourse. However, today, financial institutions may offer assistance to help manage existing debts even during financial hardship. Defaulting can severely damage your credit score, making it challenging to secure future business loans. Instead of defaulting, consider reaching out to specialized financial institutions that can provide solutions to manage debts effectively.

Avoid Bankruptcy, Collections, and Foreclosures

Bankruptcy filings can drastically reduce your credit score, potentially by more than 100 points. Chapter 13 bankruptcy remains on your credit report for ten years, longer than other negative credit information which typically stays for seven years.

Legal issues like judgments, collections, and foreclosures also have severe impacts on your credit score and are challenging to recover from compared to defaults. Rebuilding your credit to achieve an “Excellent” score after such events can be extremely difficult.

Manage Credit Appropriately

The “Amounts Owed” category reflects the debt you are repaying, with your credit utilization ratio being a crucial factor. This ratio compares how much credit you use versus how much is available to you.

To maintain a healthy credit utilization ratio, aim to keep it below 30%. This indicates you have ample available credit and are using it responsibly. However, maintaining a utilization ratio too close to 0% can negatively affect your credit. It’s beneficial to use credit occasionally rather than rarely, demonstrating responsible credit management.

Maintain Old Accounts

The “Length of Credit History” category considers the average age of your accounts and how frequently you use them. A longer credit history, provided payments are made on time, contributes to a higher credit score. It demonstrates to financial institutions that you have substantial experience managing debt. However, to benefit from a longer credit history, it’s essential to use your credit periodically, even if only sparingly.

In some cases, institutions may recommend taking out a small business loan primarily to establish or build credit history. Several months of consistent, timely payments can significantly elevate a borrower’s credit score, unlocking the advantages of good credit. Achieving similar results with a new credit card would take longer and wouldn’t necessarily contribute to business growth in the same way.

Avoid Unnecessary Debt

Applying for multiple new credit cards or loans within a short period can temporarily lower your credit score. Individuals with limited credit history sometimes do this to quickly establish a robust record of timely payments. However, each new account represents a new risk, and if these accounts are opened close together, there’s insufficient activity to demonstrate repayment capability.

Financial institutions typically conduct a hard credit inquiry before approving a loan, which temporarily reduces your score by approximately five points. These points can accumulate with each application. Therefore, applying for multiple loans within a brief period should only be done out of genuine necessity for funds, not as a strategy to improve your credit score.

Manage Different Types of Credit

Credit comes in two main forms: revolving and installment. Revolving credit allows for flexible borrowing amounts and timings, such as credit cards or business lines of credit. Installment credit involves fixed payments monthly, like business term loans or student loans.

Maintaining a good “credit mix” by handling both types responsibly often results in higher credit scores. Lenders appreciate seeing that you can effectively manage different kinds of debt you’ve responsibly taken on.

Check Your Credit Report Regularly

Credit report inaccuracies are unfortunately common. A single mistake left uncorrected can lower your score significantly. Monitoring your credit report regularly is the only way to catch and rectify these errors promptly.

Seek Non-Biased Information

When making significant decisions, it’s crucial to rely on unbiased advice from experienced professionals. Ensuring the information you receive is impartial will give you confidence in every step you take. Before acting, always consider the trustworthiness of the source providing the advice.

Prioritize High-Interest Debts

When dealing with multiple debts, focusing on those with the highest interest rates is generally wise. Paying off high-interest debts first reduces the overall amount you’ll pay to become debt-free. Consider increasing your monthly payments towards these debts if feasible, which can accelerate your progress.

Explore Debt Consolidation

Debt consolidation may be beneficial for individuals looking to manage multiple debts with similar interest rates. For instance, transferring balances from higher-interest to lower-interest credit cards can lead to significant long-term savings. Consolidation can also simplify your payment schedule, making it easier to stay on top of your financial obligations.

Negotiate Rates Effectively

Successful business leaders often excel at negotiating better rates with suppliers, utility providers, and credit card companies. Don’t hesitate to ask for improved terms, even if you encounter initial refusals. Each “no” brings you closer to a potential “yes,” and seeking better rates demonstrates proactive financial management.

Monitor Your Credit Report

By law, everyone is entitled to one free credit report annually from each of the three major credit bureaus. This means you can track your credit score three times a year by requesting a report from a different bureau every four months. Given the prevalence of inaccuracies, it’s prudent to monitor your credit report more frequently. Checking your report from a bureau does not impact your credit score, though accessing a free report may take longer than other methods.

What Is Your Business Credit Score?

Similar to a personal credit score, a business credit score reflects the credit activity associated with a company. Maintaining a strong business credit score hinges primarily on ensuring timely payment of business obligations.

How Is Business Credit Score Calculated?

Business credit scores are computed by major credit bureaus such as Dun & Bradstreet, Experian, and Equifax. Of these, Dun & Bradstreet provides a score ranging from 0 to 100, widely used in business credit assessments.

Key Factors in Business Credit Scores

Credit utilization ratio
Payment history
Length of credit history
Public records, i.e., bankruptcies and judgments
Company size
Risk factors in your industry

How Can I Build Business Credit?

Building a strong business credit score revolves around timely payments of business obligations, such as loans and bills. This ensures that your business is viewed favorably by credit agencies and lenders. Here are effective strategies to achieve this:

Incorporate Your Business

Registering your business as an LLC or corporation provides a crucial separation between your business’s financial obligations and your personal credit. This separation shields your personal credit score from the impact of business debts. It also enhances your eligibility for favorable small business loans, even during financial challenges.

Use Business Credit Sources

To bolster your business credit score, it’s essential to use business-specific financial instruments like business credit cards or accounts. Paying business expenses from these dedicated sources demonstrates financial responsibility and helps establish a positive credit history for your business. Avoid using personal credit cards for business expenses, as this can negatively affect your personal credit score.

Ensure Payment Reporting for Business Credit

To positively impact your business credit score, it’s crucial that your suppliers and lenders report your payment history to major credit bureaus. Here’s how to ensure this:

Confirm Reporting with Suppliers

Verify whether your suppliers report payment histories to credit bureaus. Not all suppliers automatically report, so inquire about their policy before establishing partnerships. Ensure that your prompt payments contribute to building your business credit profile.

Inquire with Potential Lenders

Similarly, ask potential lenders how they report payment histories. Certain financial products, like business lines of credit or merchant cash advances, may not be reported to credit bureaus, impacting your ability to build business credit through those avenues. Clarify reporting practices before selecting a lender to ensure your efforts contribute effectively to your business credit score.

Yes, It’s Really That Easy

Achieving and maintaining strong personal and business credit hinges on three core principles: consistently paying bills on time, managing debt responsibly, and maintaining an appropriate credit utilization ratio.

While these practices may not guarantee a perfect 850 credit score, they pave the way for accessing favorable business financing options such as SBA loans and traditional bank term loans. A personal credit score in the high 700s is typically sufficient for qualification. Regularly monitoring your credit report for inaccuracies ensures your score reflects your diligent financial management.

Contact us

175 Great Neck Rd # 206, Great Neck, NY 11021, United States

info@60daycapital.com

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