4 Ways to Manage Damaged or Poor Business Credit
When it comes to finances, having good credit is imperative. However, once you damage your credit, it can be very difficult to get loans or other financing. That is why you have to get serious when you have poor business credit. The only way to get yourself out of the slump is to manage your credit. There are many ways you can do this, but the following are four common options to consider.
Option 1: Take a Look at Your Credit Reports
One of the most important things you need to do to manage your credit is to keep an eye on your credit reports. Incorrect information can do a lot of damage to your credit, but it can’t be fixed if you don’t even know about it. In addition, knowing and understanding the contents of your credit report will enable you to create a plan to fix issues and prepare for the future when you are trying to maintain good credit. Seeing your past mistakes on paper is a great motivator to do things better in the future.
Option 2: Communicate With Creditors
While the common reaction to debt is to avoid creditors, the best thing to do is to keep the lines of communication open. You want to talk with them to let them know why you are behind on payments or why you can’t pay. You might be surprised to learn that many creditors are willing to work with you. They may be willing to lower payments or even remove finance charges. They want you to pay and don’t want to have to resort to collection efforts. If you show them you want to honor your commitments, they will usually do whatever they can to help.
Option 3: Pay On Time
The best way to manage and improve poor business credit is to pay your bills when they are due. You should set up a budget and ensure that you can afford any debts before you accumulate them. If you are already in trouble, don’t get more in debt. Pay off what you owe before getting in any deeper. Make payments on time. Overdue bills hurt your credit score, so try to avoid late payments whenever possible.
Option 4: Tackle Any Overdue Bills Right Away
If you are already in debt and have overdue bills, you need to create a repayment plan. It’s best to pay down the balances on debts according to the interest rates. Pay the highest off first. For example, if you owe three bills and bill one’s interest is the highest, pay the largest amount on that bill and the minimum amount due on the other two.
Managing poor business credit is a process. You won’t fix things in one day, but if you take it step-by-step, you can gradually improve things. For more help with your business, call Express Capital Financing today at 718-285-0806.