A good FICO Score is an important part of running a successful business. It can help you secure financing, get better terms from vendors, and even make it easier to hire top talent. But improving your FICO Score isn’t always easy. 

Keep an Eye on Bills and Financial Obligations

One of the most important things businesses can do to improve their FICO Score is to make sure they pay all bills on time. This includes credit cards, loans, and other forms of debt. Late payments can seriously affect your score so it’s important to stay on top of them. Additionally, business owners should be careful about taking on too much debt. Having too much debt can be a red flag for lenders and will likely hurt your FICO Score.

Monitor Credit Utilization

Another strategy businesses can use to improve their FICO Score is to keep their credit utilization low. Credit utilization is the amount of available credit you’re using relative to the total amount of credit available to you. It’s important to keep this number as low as possible, ideally 30% or lower. This will show lenders that you’re managing your credit responsibly and can help improve your FICO Score.

Monitor Personal Credit Scores

Finally, businesses should be aware of their credit scores as well. If a business owner has a poor personal credit score it can potentially hurt the business’s FICO Score. This is especially true for businesses that rely heavily on personal credit, such as startups and small businesses. Business owners should make sure they understand their credit score and work to improve it if necessary.

By keeping these strategies in mind, businesses can dramatically improve their FICO Scores and ensure long-term success. Paying bills on time, managing debt wisely, keeping credit utilization low, and understanding personal credit are all essential steps to improving your FICO Score. With a little bit of effort, businesses can get their FICO Scores in order and enjoy the benefits that come with it.