Quick strategies to boost your business credit score and improve loan approval odds.
To improve your business credit score, follow these strategies: (1) Pay all bills on time — payment history is most important factor, (2) Reduce credit utilization — keep below 30% of available credit, (3) Add more trade credit lines — more accounts with good history improves score, (4) Dispute errors — remove incorrect negative items, (5) Pay early — some vendors report early payments positively, (6) Monitor credit reports — check quarterly for errors or fraud. Can improve score 20-50 points in 2-3 months with consistent effort.
Payment history is the most important factor (40-50% of score). Set up automatic payments for all business bills (utilities, rent, vendors, loans). Even one late payment hurts significantly.
Tip: Pay a few days early to avoid any risk of late payment.
Keep credit utilization below 30% of available credit. High utilization (70%+) hurts scores. Pay down balances or increase credit limits.
Example: $10k credit limit, use max $3k (30%).
More accounts with good payment history improves score. Add net-30 or net-60 payment terms with vendors. Start small, then add larger suppliers.
Learn how to build business credit.
Check credit reports from Dun & Bradstreet, Experian, and Equifax. Dispute any errors (incorrect late payments, wrong balances, fraud). Removing errors can boost score quickly.
Some vendors report "early" payments positively. Paying before due date shows reliability and can improve score over time.
Check reports quarterly (or monthly if actively improving). Catch errors early, track progress, and identify areas for improvement.
Expected improvement: 5-15 points
Expected improvement: 20-50 points
Expected improvement: 50-100+ points
Most important factor. On-time payments boost score, late payments hurt significantly. Focus here first.
Amount of credit used vs available. Keep below 30% for best scores.
How long accounts have been open. Older accounts help score. Can't speed this up, but important long-term.
More accounts with good history improves score. Add trade credit lines gradually.
Bankruptcies, liens, judgments hurt score significantly. Avoid these at all costs.
Can see improvement in 30-60 days with consistent on-time payments and reduced utilization. Significant improvement (50+ points) typically takes 3-6 months. Depends on current score and issues.
Paydex (D&B): 80+ excellent, 70-79 good, 50-69 fair. Intelliscore (Experian): 76-100 excellent, 51-75 good. Aim for 70+ for best loan rates.
Yes, but keep accounts open. Paying off debt reduces utilization and improves score. However, closing accounts reduces credit history length, which can hurt score slightly.
Yes, but takes time. Late payments stay on report for 7 years but impact decreases over time. Focus on making all future payments on time to rebuild score.
Step-by-step guide to establishing business credit.
Understand credit score requirements by loan type.
Options for securing financing with low credit scores.
Complete guide to loan qualification requirements.
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