Start Business Credit With Good Personal Credit

In order to successfully start business credit, you should make sure that your personal credit is good. This is especially true if you are the sole proprietor of your company.

The easiest way to start business credit history is to apply for a business credit card. Business credit lenders will review your personal credit when considering lending to your company. Your personal credit report and score will play a major role in your startup business credit. If you manage your personal credit well, lenders will expect that you will handle your business credit in a similar fashion.

You can begin to manage your business credit score with about two company credit cards. Like personal credit, you should not open too many accounts. It is also important to pay the bills on time and review your business credit report and score regularly.

Make sure that you do not neglect your personal credit once your business credit is established. Since you are the main owner of your company, your personal credit will remain a consideration when you seek business loans in the future. Don't injure your personal credit in order to maintain business credit. Instead, use it to build your company's credit.