When running a startup, having a good business credit score is essential. It can mean the difference between getting approved for a loan that keeps your operation sailing forward and experiencing a financial meltdown. There are other reasons why you shouldn’t hesitate to check that you are in good standing with credit scoring agencies. Here are a few that might be enough to push you into action.
Checking Your Reports Is Free
As the owner of a young enterprise, you’re in the habit of avoiding unnecessary expenses. Making budget cuts is a decent strategy for remaining in the black. However, you don’t need to worry about these inquiries cutting into your budget. Once a year, you have the right to ask for a personal report without cost. Each of the three reporting agencies, Equifax, Experian, and TransUnion, makes this offer, so take advantage of all of them. If one of your requests gets denied, contact the refusing agency to find out why. The culprit could be something as simple as missing information or an incorrectly filled-out section.
Monitoring Your Reports Helps Maintain Good Credit
Looking at your credit score can bring issues to your attention before they embarrass you or get bigger. For instance, you may spot items that you know will create credit complications. You have the right to challenge details you believe are incorrect and have them removed if they are. Alternatively, you can wait until mistakes fall off after a certain amount of time. Seeing a report without the offending item on it will give you the confidence that it’s okay to move ahead with your loan plans or credit card application.
Reading Your Reports Can Uncover Identity Theft
Crime has moved from stealing physical dollars to digital wrongdoing. Thieves know there’s more money in impersonating victims than snatching purses or breaking open ATMs. When looking at your report, you may see errant information. Wrong names and social security numbers are signs that someone is taking advantage of you. The moment you detect irregularities, alert authorities that you believe illegal activity is going on. By taking action early, you can avoid a major headache with the potential to last for years and cause trouble that could end your business.
Having a healthy business credit score is desirable for every entrepreneur. Getting to that level requires vigilance and paying attention. By requesting credit reports, you might be able to reach that goal faster.