Business Credit Center

Credit application denied: Tips to help improve creditworthiness

Taking these steps might be able to improve your credit profile.

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Credit application denied: Tips to help improve creditworthiness

In order to obtain credit, as a small business owner, you must have a solid record that demonstrates your business’s credit value as well as your personal creditworthiness. This includes the ability to make debt payments on time and maintain a positive cash flow. If your credit application was recently denied, these tips can help you prepare for your next credit application.

  1. Determine what specific items are a cause for concern with your credit profile.
  2. Make a list of all your creditors, vendors, and the amounts owed so that you can schedule and make on-time payments.
  3. If possible, address any errors on your personal credit report.
  4. Build up some savings, and use that money as collateral for a cash-secured line of credit or credit card for your business. Using this account and paying these bills on time will help build a credit history.
  5. Obtain smaller loans first that are secured with equipment or vehicles.
  6. Work to improve your overall debt ratio by paying off existing loans or credit cards.
  7. Build up a solid business credit profile by establishing accounts with vendors and paying them on time.

It’s always good to review what it takes to establish a solid personal and business credit history. Read up on some best practices for building your credit profile.

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