When you go to obtain a copy of your business credit report from Equifax, Experian or Trans Union, you will be charged a fee. The reason for doing so is that these three credit bureaus only allow one company to maintain the information contained in their business credit reports. These companies are TransUnion, Experian and Equifax.
In order to get the full picture of how much debt you are carrying on your business cards, you need to know exactly what your credit score is. This is a score that not only tells you how much debt you have but where it is located. You can request your credit report from any of the three credit bureaus provided by Equifax, Experian or Trans Union. Make sure you get an up to date report if you ever change companies as they may not update your existing report. The credit bureaus are not the evil, they are simply the way to get you the business credit you deserve.
Business credit cards from Equifax, Experian and Trans Union all fall into two categories, which are secured and unsecured. A secured business credit card is one that comes with collateral, which could be property, bonds or other collateral such as cars, homes or electronics. With a secured business credit card, you can only spend what you have put down on the card. This is good for someone who is just starting out in business because they do not yet have much debt to pay off. While this option is not ideal, it is far better than having no business credit at all.
An unsecured business credit card is simply one that does not require collateral to be applied for. This type of credit card is great for business owners with poor credit histories or even for those who are new to business. There is no need to place money on capital to pay off your debts, although you will have to pay a higher rate of interest. However, by using your credit card regularly, you can slowly pay down your debt, rebuild your credit, and make a more positive impression on potential business partners. By regularly paying off your credit cards, you should be able to increase your credit score over time. This can help you qualify for loans in the future.
As soon as you are able to qualify for a business credit card, it is important that you begin to manage it responsibly. Always keep your balance paid and never go over your limit. You will also want to make sure that you get your Equifax credit reports and check them periodically to monitor your progress. You can learn how . . . . . . to access your Equifax business credit reports online at any time from the comfort of your home.
If you notice that there are inaccurate items on your credit reports, you can dispute them immediately. Contact Equifax to report the item. They will provide you with instructions on how to proceed. In some cases, you may have to reschedule your payment dates or make other changes to ensure that the accuracy of your report is accurate. Equifax is required to investigate the validity of any item on your Equifax credit reports.
By consistently making your payments on time and not missing payments, you will begin to build a positive history with Equifax. Eventually, your credit score will increase because you will be able to get better interest rates when you secure financing. And by paying on time, you will avoid getting a negative report that shows up on your Equifax credit report. This could adversely affect your ability to get a loan for your new business.
Once your business credit card becomes part of your company finances, it is very important that you use it responsibly. You must learn how to manage your business credit card balance carefully and consistently. Otherwise, you could damage your credit report. The decision to apply for an Equifax business credit card is one of the most important financial decisions you will ever make.