4 Reasons Why Monitoring Your Business Credit Score Is in Your Best Interest
If you’ve ever had to apply for a credit card or personal loan, you know that your credit score is one of the most important factors when it comes to determining the interest rate and amount you’re approved for. However, credit scores aren’t just issued for individuals. They’re also issued for businesses and those scores can have a major impact on your ability to get financing when you need it. The best thing you can do is to get in the habit of monitoring your business credit score report. Here are a few reasons why it’s so important.
1. You’ll Catch Fraudulent Activity
Believe it or not, identity theft is a major issue, even for businesses. Once it happens, anyone with your information can open lines of credit or apply for loans in your name. The more debt you have, the lower your score will become and the harder it will be to get funding in the future. Monitoring your report allows you to catch fraudulent activity before it has a chance to damage your score. The sooner you catch it, the easier it will be to correct the issues and catch the thief.
2. You’ll Find Ways To Improve
You can’t improve your credit score if you don’t know what it is. Monitoring your credit report allows you to stay on top of your score throughout the year. This makes it easier to identify trends that are having both positive and negative impacts on your score so you can make adjustments throughout the year.
3. You’ll Be Able To Monitor Hard Inquiries
Anytime you apply for a loan or a new line of credit, lenders and credit issuers conduct a credit check. Those inquiries are part of the process, but if you have too many of them at once or too often, your score will suffer. Luckily, those inquiries are logged on your business’s credit report. Monitor those inquiries to make sure lenders are only checking your credit after you apply for loans. If you notice any hard inquiries that you didn’t authorize, you’ll be able to report and address the damage quickly.
4. You’ll Stay on Top of the Accuracy of Your Report
Even credit bureaus make mistakes, but if you’re not monitoring your report, you won’t know about those mistakes until it’s too late. By checking your report often and monitoring your score, you’ll be able to make sure your credit history is accurate and won’t have a negative impact on your future.
Get in the habit of checking your business credit score regularly. Once you do, you’ll keep your business’s financial future more secure.