New businesses often confuse between credit score for a company and a personal credit score. It is important to maintain a good credit score that reflects your financial stability. It further helps you get a new loan if you have a new product line coming soon while maintaining a good personal credit score helps you attract new offers.
You should learn that personal score and company credit score are two different scores, and the personal score should never be utilized for business transactions. Lenders may get an impression that you’re still underway to maintain a business identity.
An attractive business credit score represents your business’s credibility and is helpful in case you have a small business set up.
What is a personal credit score?
Any personal credit score ranges between 300 and 900 reflects your financial ability to deal with your credit card bill payment. You can obtain your credit information report from a credit bureau like CRIF. Likewise, you can obtain your business credit information report from CreditQ that uses a unique credit information diagram to present your financial capability.
A good personal score is any score that is 750 or above. It means the higher the score, the higher will be your credit limit for the credit card you own. Besides, you can avail of other benefits like lower interest rates and faster loan processing. A good score tells a lot about your financial habits. If you’re planning to get your loan sanctioned from trusted financial institutions, you should score more than 650. To maintain a good personal score, you should regularly check your credit information report and pay bills on time.
Also Read: How to Generate Credit Information Report on CreditQ
How to boost your personal credit score?
Now it’s evident that you need to maintain a good score to secure a loan and enjoy financial freedom when it comes to purchasing personal assets. But how do you maintain a good score for a longer time so that it yields results?
The first thing you can do is to sign up for automatic payments so that the amount is deducted every month without looking like a burden if you wish to pay at once.
Settle for a date that backups your payment plan. Do not adjust a payment date that is not synced to the date of your income sources. You may get late in making payments and incur interest.
Check your credit information report regularly so that you can correct the discrepancies and errors and report fraud as well.
What is a company credit score?
A credit score for a company determines your seriousness in your ongoing financial dealings. It represents your company’s creditworthiness; therefore, it is wise to maintain a good score. In India, a business credit score ranges between 300 and 900. You can obtain your credit information report through any trusted credit information bureaus, such as CreditQ. Not only does it help you check your credit report, but it also helps you in the payment settlement, in case you’re dealing with any business defaulters.
If you’re making regular payments to your vendors, it means that you’re likely to have a higher company credit score. It can help you find trusted lenders and investors who can contribute to your business in the long run.
What determines your credit report for the company?
There are many leading credit bureaus where you can check your company credit report in India. While you can obtain relevant information on your business, you must understand what determines your overall score.
While preparing your credit information report, CreditQ undertakes your number of years in the business, new credit lines, payment history, credit applied for the past few months, and collections past a few years. It helps the firm get an idea of where your company stands in financial terms.
How can you boost your credit score for a company in India?
You may get an idea about your business strengths and weak areas while checking your company credit report in India. It helps you analyze your business capabilities.
To maintain an impact company credit report in India, you should make timely payments to your vendors, check your report regularly to avoid discrepancies and errors, and report your business defaulters on sites like CreditQ to generate scope for payment settlement.