A Business Credit Report Works the Way a Personal Credit Card Report Does
A business credit card is just as useful as a personal credit card is, and you can just as easily obtain, grant, as well as expend credit with your business credit card as you would with a personal credit card. If you need to apply for a business credit card, you don't need to do more than fill out your application form.
Or, simply input your personal information online. After this, the normal procedure begins that, other things being equal, will ensure that you won't have much difficulty in obtaining your business credit card.
Good Use of Business Credit is a Plus
Of course, it does mean first up that your business credit report needs to show that you are good at using your business credit card. In case the business credit report reflects a high credit score, you should find it easier to get larger amounts of credit and at attractive terms as well.
Thus, you must ensure that your business credit report shows you in good light and that your credit score is at least good, if not better. What's more, in order to ensure that you, as a small business owner, get your application approved with less fuss or bother, it is a good idea if you register your business with the big business credit bureaus, of which Dun & Bradstreet or D&B is a good example.
Once you have registered your business with these business credit bureaus, all information pertaining to your business will be gathered by these bureaus in the same way as is practiced for individual credit card holders. How much credit you have, the period of time you have kept your accounts active, and your history of payments made will all be stored by these business credit bureaus.
Thus, any lending institution, bank, insurance companies, or other lenders who are planning to extend credit to your business will first of all check your business credit report. This way, they can know whether you are an honest business that makes complete payments as well as does so in time, or not.
So, you can be sure that as soon as you fill out your application for business credit, the lender will first of all ask for and get a copy of your business credit report and then see how good your credit score is. What's more, in case of a newly established business that does not have any great history of past credit to show their creditworthiness, it takes about two to five years before the business can establish a good reputation.
That, in turn, means that till such time as your business has established it as a sound proposition, your business credit report will have to be linked to your personal credit card reports. In fact, it is the latter that will help lenders decide whether or not to approve fresh credit for you. It certainly means that you need to be just as careful with your personal use of credit cards as you have to be in the case of business credit cards.
It is, of course, best for you to establish your independent business credit rather than have your credit linked to the personal credit card.The sooner you make this break the better it will be for your business.
