Why Tradeline Account is Important for Business Credit

There is so much misinformation out there about business credit. Just as you have a personal credit score, so does your business. There are several but the benchmark is a Paydex score. A good Paydex score is 80 or above. A business credit score is important in building your total package. Lenders look for structure and a good business score shows structure and stability. Here’s how to get one.

There are credit grantors out there that will extend credit using just your EIN. It’s called “trade line” credit. Companies like Staples, UPS store, Kinko’s, some gasoline stores, even Dell computer, will all offer you small amounts of credit. No more than several hundred dollars worth as a rule. Risk is low, interest rates are high. But establishing these lines is critical to getting your score. I counsel my clients to get 4-6 of these accounts but know there are almost a hundred available today. You fill out an application and insert your EIN where it asks for a social security number. Once you’ve obtained the credit, use it on a monthly basis. When the statement comes, pay it off in full. After three or four billing cycles, you’ll have a Paydex score. Remember it’s important you get trade line accounts from vendors that report your activity. There are countless people out there charging up to $15,000 to do this for you. As I stated earlier, be careful. I’ve had dozens of clients come to me with horror stories. That they’ve paid as much as $15,000 and nothing to show for it other than a couple of trade line credit cards.

I’ve researched over two dozen companies that provide business credit. The majority were boiler room scam operations. I’ve found one that does exactly what they say and I highly recommend them. Yes, there is an up front cost, $1995. They offer a full money back guarantee but can help you get up to $150,000 of unsecured business credit (not just tradelines). They tell you in advance what you’re getting and give you realistic time frames as to what can be expected.