How to Improve Your Personal and Business Credit Scores

How to Improve Your Personal and Business Credit Scores

A good credit score can make all the difference. Lower interest rates. Better deals. Greater chance of approval.

And this is especially true when you’re a business owner.

Two scores come into play when you apply for business credit — your personal credit score, and your business score. Here’s what goes into them, plus some tips to help give them a boost.

Why Your Personal and Business Credit Scores Matter

Personal Credit Score

Your personal credit score can show lenders how you manage debt and repayment in your own life. This is especially important if your business is new and doesn’t have an established business credit history.

A good personal credit score can help you secure financing for your business. Online lenders may have more flexible requirements. Often, they’re able to consider your financial life as a whole, instead of just the numbers.

Business Credit Score

Having good business credit means you have a better chance of securing the financing you need. Financing that can help you manage cash flow, grow your business and prepare to handle emergencies or take advantage of opportunities.

Your business credit score can help show off your business’s strengths and take some of the pressure off your personal score. It can also help you secure better deals from vendors and better rates from insurance companies.

What Goes Into Your Credit Score 

Personal Credit Score

Your personal (or consumer) credit score is impacted by your personal accounts. Lenders and banks report your credit usage and history to the three consumer credit bureaus. The three bureaus use the same algorithms to calculate your score, called a FICO score. You can access your credit report for free every 12 months. Your credit report typically doesn’t contain your credit score, but some services provide it complimentary.

Here are the factors that go into your personal credit score.

  • What’s your repayment history? Missing payments, declaring bankruptcy and having debt sent to collections will damage your score. How much they impact your score can depend on a number of things like how late they were and how recently they were missed. On the other hand, making payments on time and in full can give your score a big boost.
  • How much debt do you already have? The amount of debt you’re already carrying is also a big factor. For example, if your credit card is almost maxed out, your score may take a hit. The general rule of thumb is to try and keep your credit utilization rate below 30% and your total debt-to-income ratio under 36%.
  • How long have you used credit? This measures the average age of your credit accounts — from your oldest to your newest accounts. It can demonstrate that you have good experience using credit.
  • What kinds of credit do you use? Having a good mix of credit can show that you’re able to manage different types of lending. This includes mortgages, credit cards and car loans.
  • Have you recently applied for new credit? This shows how often you’re applying for credit. Shopping around for rates is normal and taken into account when this is measured, but over applying for credit can ding your score.


Your business credit score works in a similar way to your personal credit score, but there are a few differences. There are three major business credit bureaus where you can pay to access your business credit score.

These bureaus don’t always use the same algorithm to measure your score, and your business credit report is more likely to have mistakes — so it’s especially important to monitor.

One thing to note is that anyone may access your business credit score if they pay for it. This can help vendors, investors, lenders and insurance companies decide how they want to do business with you.

Your business credit score can range from 0 to 100, with anything over 80 being a good score. Only accounts under your business’s name will have an impact and it generally follows the same rules as your personal score — make your payments on time, keep your utilization rate low and don’t overapply.

How To Improve Your Business and Personal Credit Scores

Building your score won’t happen overnight, but there are a few things you can do to put yourself in the best position for a boost.

Make sure you’re borrowing from lenders that report to the credit bureaus. Whether it’s personal or business borrowing, you won’t get any points for good behavior if your lender doesn’t report to the credit bureaus.

Set up automatic payments. Sometime’s life gets busy and we forget to log on and make a payment. Help ensure you never miss a bill by setting up auto-pay.

Decrease your utilization rate. Paying down debts will decrease your utilization rate and can give your score a boost.

Find and fix any errors on your credit report. Access your credit reports and ensure all the information is correct. If you find an error, contact the bureaus to dispute it.

By making your payments on time, keeping your utilization rate reasonable and not overapplying for credit, you’re taking the right steps to set yourself up for a boost. It usually takes time, but you don’t need to wait to have perfect credit to apply for funding. You can find loans and lines of credit from lenders online that have less strict requirements. If they report to the credit bureaus, it may even help to build your score.

Baylee Alerding

Baylee Alerding, CFEI, is a copywriter specializing in finance. Before joining Enova in 2022, she worked for a financial planning firm in Northern Virginia, where she regularly contributed articles on financial literacy, personal finance and other monetary trends. She graduated from Virginia Commonwealth University with a bachelor’s degree in communications and received her certification for financial education instruction from the National Financial Educators Council.

Leave a Reply

pga77 pga77 slot suster123 kijangwin ladangtoto rajatogel slot-gopay kakek zeus scatter-hitam scatter-hitam kijangwin suster123 scatter-hitam slot taiwan slot-gopay hoki99 slot linkaja slot ovo nenektogel gasing777 tumi123 bento123 fendi188 gasing777 66kbet scatter-pink scatter-hijau ladangtoto ladangtoto gudangtoto rajatogel nusantara4d ladangtoto scatter-hitam slot-bsi scatter-hitam ladangtoto slot-bri pga77 slot-goceng slot-10k opaltogel scatter-hitam jp188 ladangtoto slot-linkaja slot-cimb slot-gopay slot77 sbankjago sbca slot-qris ladangtoto slot-dana idnslot slot-mandiri slot-maybank ladangtoto scatter-hitam ultra889 sumseltoto medantoto rajampo raja88jp indoslot88 asiatoto88 mpltoto wajik777 tumi123 kembangtoto alexistogel mawartoto rajatogel wajik777 madu303 mpo888 sikat88 gucitoto pga77 pga77 ladangtoto olx188 gacor88 ayah4d pga77 pga77 gemilang4d ladangtoto petir388 kembangtoto sikat88 ying77 slot212 texas88 slot138 rp888 rumah258 cuan88 slot-bonanza scatter-hitam slot-dana kakek-merah rajampo lampung4d alay4d jambitoto manadototo binjaitoto pajaktoto popotogel 888slot jacktoto kaskustoto keitogel laku77 wing4d bostoto laetoto afktoto rudaltoto ojktoto pga77 rajagacor olxslot rajatogel jacktoto bento4d kaskustoto pga77 preman69 mpo808 mpoxtra838 rajatogel rajagacor ladangtoto asiatoto tumi123 olx188 bro138 galaxy77 asiatogel88 gacor88 rajatogel slot77 padangtoto rasa4d sdtoto omtogel ltdtoto dentoto rupiahtoto gacor88 pgbet slot-thailand mawartoto rajatogel rajatogel rudaltoto mawartoto topjitu toto188 mom4d 888slot sdtoto angkasa168 hondatoto 888slot bro138 scatter-hitam slot-zeus kaskustoto rajatogel tumi123 mustang303 api5000 senja777 super33 dewanaga89 hokibet dewa234 sizi99 cuanwin77 liga2000 88mega popi99 bento123 macauslot 888slot hoki178 jackpot108 gadunslot gacor88 king999 rajampo big777 kedai69 rp888 rajapaito ladangtoto rajatogel gtr11 slot99bet alba88 stars77 mangga2bet klik88 rans288 fin4d ceriabet leoslot88 agen108 dewasurga88 dragon222 gacorbos88 medusa88 pga77 pga77 pga77 surgawin homebet88 bento4d pga77 pga77 jago777 sgpslot api88 m77casino m77slot rajatogel bento4d m77casino m77slot hoki178 rudaltoto wajik777 gacor88 rajampo ladangtoto pga77 juragan69 texas88 mahjong69 galaxy77 pga77 hebat303 pga77 pga77 ladangtoto asiatoto inatogel toto88 jacktoto robintogel ladangtoto pga77 888slot wajikslot olx188 olxslot inatogel pga77 gacor88 pga77 bento4d robintogel asiatoto dewatoto gacor88 888slot slot-zeus slot-dana pga77 pga77 zodiak69 licin4d pga77 888dewa asian303 888slot indosultan88 slot-zeus Slot-Mahjong 66kbet rumah258 ying77 betseru pga77 scatter-hitam jayagaming lido88 hoki178 batik77 medusa88 duniabet303 royaltoto indosultan88 wdbos 888slot 888dewa wajik777 royaltoto wdbos gacor88 raja328 planet77 dewi188 slot-zeus slot-dana dewihoki fendi188 hoki178 batik77 pga77 naga138 robintogel surga55 pga77 slot-maxwin rajampo pga77 lotte4d 888slot pga77 angkasa168 pga77 cermin4d bento4d pga77 toto88 operatoto gacor88 olx188 m77casino m77casino pga77 pga77 888slot api5000 pga77 pga77 m77casino pga77 juragan69 pga77 presidenslot bighoki alexabet88 g200m m77casino mentari138 hoki178 olympus88 mega55 pga77 pga77 royaltoto panen77 pga77 garuda4d pga77 royaltoto sultantoto pga77 aksara4d arwanatoto bobatoto pga77 gacor88 m77casino 888slot 66kbet sritoto m77casino iramatogel mantra88 ajaib88 pga77 dewaslot88 pisang123 pga77 pga77 gas138 olx188 muara777 gacor88 dewaslot99 royaltoto pusat4d bos5000 pga77 888slot scatter-hitam pga77 sdtoto wis77 pamanslot meme4d diana4d prada4d neko4d angsa4d sinar777 brio4d pga77 okgas21 scatter-hitam slot-bonanza 98toto kingdomtoto direkturtoto rupiahtoto pga77 pga77 wongtoto akartoto kompastoto sultantoto gacor88 sumbartoto planet4d ngamenjitu 888slot royaltoto pga77 dorahoki pga77 pga77 pos4d djarumtoto kenzototo jejuslot mega777 royaltoto nirwana88 pga77 888slot pga77 pga77 palu4d royaltoto rogtoto omtogel Slot-Mahjong pga77 slot-demo pga77 slot-maxwin slot-zeus shitam sthailand pga77 pga77 pga77 pga77 pga77 pga77 pga77 pga77 pga77 pga77 pga77 pga77 pga77 pga77 pga77 pga77 888slot pos4d pga77 m77casino pga77 pga77 pga77 pga77 pga77 pga77 pga77 pga77 pga77 royaltoto sultantoto pos4d api5000 888slot pga77 pga77 m77casino pga77 pga77 pga77 pga77 pga77 pga77 pga77 pga77 pga77 pga77 888slot gacor88 royaltoto pos4d 66kbet ying77 rajapaito pga77 pga77 gacor88 scatter-hitam pga77 scatter-hitam pga77 pga77 pga77 pga77 pga77 pga77 888slot pos4d sultantoto royaltoto