DigitalREGroup

Credit tips: build, repair and use credit wisely

Practical steps to raise your score, fix mistakes and build business credit that doesn’t depend on your personal file.

Know where you stand

  1. Pull your reports for free. AnnualCreditReport.com is the official free source for all three bureaus, now available weekly.
  2. Know what drives your score. Payment history and how much of your limits you use matter most, followed by account age, mix of accounts and new applications.
  3. Dispute errors in writing. Under the Fair Credit Reporting Act, bureaus generally must investigate disputes within about 30 days. Send clear evidence and keep copies.

Raise your score

  1. Pay every bill on time. Set up autopay for at least the minimum. One 30-day late payment can cost a lot of points and stays for years.
  2. Keep balances low. Aim to use under 30% of each card’s limit, and under 10% for the best scores. Paying before the statement closes lowers the balance that gets reported.
  3. Keep old accounts open. Your oldest card helps your average account age. Use it lightly so it stays active.
  4. Space out new applications. Each hard inquiry can lower your score a little. Rate-shop for a mortgage or auto loan within a short window so it counts as one.
  5. Start or rebuild with the right tools. Secured cards, credit-builder loans and being added as an authorized user on a well-managed card can all help a thin or damaged file.

Build business credit

  1. Set up the foundation. Form an LLC or corporation, get an EIN, open a business bank account, and use a business phone and address.
  2. Get your business credit files started. Register with Dun & Bradstreet (D-U-N-S number is free) and make sure your business shows correctly at Experian Business and Equifax Business.
  3. Open vendor accounts that report. Net-30 suppliers that report on-time payments build your business file. Pay early.
  4. Use business cards in the business name. Keep business spending off personal cards so your personal utilization stays low.
  5. Monitor your business reports. Check them like your personal reports and correct errors quickly.
The book
21st Century Credit

How to build, repair and leverage personal and business credit, the modern way. Join the early-reader list for launch pricing and a free chapter.

General information, not financial or legal advice. Results vary; no one can legally remove accurate, timely negative information from your report.