As an experienced entrepreneur with over a decade worth of experience in the business world, C. Naomi Covington noticed one thing that was overlooked or unnoticed by many business owners, especially the ones who owned small businesses, the importance of business credit and business credit score. Many business owners were unaware of the benefits of having a high business credit score and how it could play a crucial role in determining the amount of success their business achieved. So, Covington decided to share this valuable information through her latest book,It’sSimply Business Credit (ISBN 978-1951630065) : For Aspiring Entrepreneurs, Government Contractors, and Franchise Owners.
In the book, Covington shares effective tips and hacks to help business owners boost up their business credit as well as learn all the ways they can use it to their business’s advantage. She also shares strategies to maximize business profit and value. This book can help big and small business owners reach success. According to Lydia Roth from Nav, here are several business credit hacks that every business owner should know:
· An ABC News post mentions that if you report a card lost, credit card companies make a new account and copy over all the old information, including the original open date. It can help increase your average credit history, though sometimes credit card companies report it to credit bureaus, in which case it might not work.
· You can try to dispute old, small collection accounts. If the collecting agency doesn’t respond, they can get dropped (they get dropped after 7 years either way). This may help, but it might not make a difference since credit scoring systems already ignore amounts under $100.
· If you have a parent or close relative with a long credit history and high credit limit, you can piggyback off their account if they’re willing to add you as an authorized user on their account. This would help increase the average age of your accounts. It can help or hurt your credit utilization, depending on how high a balance the other cardholder tends to carry. Some credit scoring will weigh being an authorized cardholder less than being a primary cardholder.
· One simple hack to reduce your credit utilization is to make multiple payments during each billing cycle. Your credit utilization is a snapshot of the balance you carry at the time your credit card company makes a report to a credit bureau.
· Another way to reduce your utilization is to increase your overall credit limit. HOWEVER, be aware that each card you open will result in a hard inquiry. Hard inquiries can reduce your credit score, but more importantly, if you apply for multiple cards it can be a sign of desperation, that you expect trouble ahead.
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