What Method Of Credit Card Repair Services Is Right For Your Business
A credit score can make or break your business. This is why it is essential to maintain a good credit score for the well-being of your business.
If you have a good score already, you would not have encountered any problems since vendors and creditors love people like you.
But if you do not have one, you know its drawbacks. If your business has a steep expenditure with a bad credit score, you will be liable to higher interest rates.
But all is not lost. There is still hope for you to improve your credit score. With effort, time, and some money, you can get your credit score off the ground.
If you are looking to improve your credit score, this article is for you. Dive in to know how you can improve your business credit score.
Difference Between Personal And Business Credit Score
There are many differences between personal and business credit scores. Some of the key differences between these are as follows:
A personal credit card is linked to your social security number, which means you have only one credit report. Thus you need to take good care and maintain a great credit score.
On the other hand, a business credit card is tied to your employer identification number, which the IRS issues. Your business has a different employer identification number, thus a different credit report.
Things To Keep In Mind When Getting A Business Credit Card
There are a few things to keep in mind when getting a business credit card. Some of them are as follows:
Some small business credit issuers report your activity to commercial and consumer bureaus, thus affecting both your personal and business credit score. If this is undesirable to you, select a credit issuer accordingly.
Consumer protection laws such as the Credit card Act of 2009 are not applicable for small business cards. Therefore make sure to be extra vigilant when selecting an issuer. If you are not careful, your APR could change overnight.
Whenever curious about any policy clauses, clarify them with your issuer.
Why is Business Credit Repair Different From Personal Credit Repair?
You would be familiar with the Fair Credit Reporting Act (FCRA). If not, the FCRA protects the consumers from a bad credit score due to inaccurate information on their credit reports. This is the predominant practice of credit repair companies to repair their customer's credit scores. This, however, is not applicable for business credit cards.
There are no laws to protect business owners from false information on credit reports.
Because of this, the methods of credit repair are entirely different from that of personal credit. This is why it is vital to select credit repair services well suited to your business needs.
Methods Of Credit Card Repair Services Available For Business Credit Cards
1. Debt Validation
If you think a particular entry in your credit report is inaccurate, you can send a debt validation letter. The creditor can then respond to your letter and send you the details of the account you are reporting.
Since the FRCA does not apply to business debts, the creditors are not obliged to send you a report.
Therefore after sending a letter to the creditor and the credit reporting agency, you would have to wait for 30 days. If no response is received during that period, you can dispute it with the business credit reporting agencies.
2. Vigilant Monitoring
It is not just enough to check your credit score when getting your credit report. Make sure to check the description thoroughly so that you can identify any discrepancies at the earliest.
Once you find any inaccurate entries or errors, make sure to dispute them at the earliest.
3. Remove Derogatory Items
Sometimes, when the creditor feels an outstanding amount on the debt you owe them, they add a derogatory item. These derogatory items are harmful to your credit report and your credit score.
These items will often be removed once you pay the outstanding debt. Make sure to draw up an agreement with your creditor, mentioning that they will delete the item once the payment is made.
4. Vendor Credit
Vendor credits are credits that are issued initially. Once you pay back the amount in a set term, you will have a profile and a good credit score. With this profile and credit score, you will get cash credit.
Vendor credit is one of the fastest ways of repairing bad credit scores. These credits can be from reporting trade accounts or non-reporting trade accounts such as PayPal Credit.
What Happens When You Dispute a Charge?
When you file a dispute with a business credit reporting agency, they allocate a vendor to re-verify the payments. If the vendor cannot verify the payment, the charges will be removed.
The following cases are when you can dispute a charge:
To remove inaccurate or false entries
To clear up issues that have been settled or dismissed
Derogatory items
Maintaining a credit score by monitoring and disputing the charges is tedious. Not to mention, it takes time and expertise to prove that the disputes are valid. This is why it is crucial to employ a credit repair service company to handle it for you.
A professional credit repair service company is capable of providing evidence that your disputes are valid and repairing your credit score.
Final Thoughts
A lot of people in business have no credit reporting. This means that even one negative mark can prove fatal to your credit score.
The only way to keep a check on your credit score and make sure it stays up is to be vigilant. A good credit repair service can make your life easier by caring for the necessities. Therefore investing in a good credit repair service can benefit your business.
Remember, Rome was not built in a day. Similarly, a good credit score cannot be built in a day. But with diligent efforts, you will get there.
Happy crediting!
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