How to Build Business Credit with Bad Personal Credit

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Having bad personal credit, admittedly, doesn’t make it easy to build business credit. But it can certainly be done with the right approach.

Here are some specific strategies on how to build business credit with bad personal credit to make yourself a more attractive borrower.

Establish Your EIN

A good starting point is to establish an Employee Identification Number (EIN).

This is a nine-digit number that’s assigned by the IRS to businesses operating within the United States and the US Territories.

An EIN is used for multiple purposes, including “filing company tax returns, opening a business bank account, applying for licenses and permits, and applying for business credit,” the Small Business Administration explains.

It’s helpful to have an EIN because it gives you another means of attaining business credit lines, and you can open a business bank account with it rather than using your personal information.

An EIN kills two birds with one stone because it will help get your small business off the ground and also serves as a workaround for bad credit.

So if you haven’t established one yet, now is the perfect time to do so. You can find all the information you need for applying for an EIN here.

Register with Dun & Bradstreet

While the three major credit bureaus for reporting personal credit information are Equifax, Experian, and TransUnion, it’s a little different for business credit.

Information is still reported to Equifax and Experian. But, instead of TransUnion, the other main credit bureau it’s reported to is Dun & Bradstreet, among others.

Another critical part of establishing business credit is registering with Dun & Bradstreet, where you apply for a Data Universal Number System (DUNS) number.

It’s free and easy to do and can be done via the Dun & Bradstreet website here.

Simply complete the four basic steps, and after your information is validated, you’ll receive your nine-digit DUNS Number.

Once you have it, lenders and credit agencies will use it to verify your legal status as a small bus...

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