Business Credit with Bad Personal Credit

business credit with bad personal credit

 If you have bad personal credit, don't worry – you can still get business credit. It will just take a bit more work. In this blog post, we will discuss the steps that you need to take in order to get approved for business credit. We will also provide some tips on how to improve your personal credit score. Let's get started!

1. The first step is to Start a Business

At Northwest Registered Agent you can start your LLC or Non-Profit in under 10 minutes. Their starting cost is $39.  Zen Business offers LLC formation services for just $49. Even if you have no idea yet what kind of business you want to start just use your first name and your middle name and put consulting behind it. You can change the name later. Or you'll eventually decide what kind of business you want to create. Additionally, you can never go wrong with consulting. So get started asap!

2.  Get your free employee identification number (EIN) 

Be sure not to use any websites that charge a fee because it's not necessary. Just go to the correct website which is and you'll be able to get the EIN and download the .pdf the same day.

 3. Apply for your duns number

Duns and Bradstreet is one of the official credit reporting agencies for business credit. With personal credit, we have Experian, Transunion, and Equifax. However, with business credit, we have Duns & Bradstreet, Experian business, and Equifax business.

 4. Open a business checking account

You'll need a seasoned business checking account to prepare for business funding. Lenders will not deposit business funds into a personal checking account. It only takes 5 minutes to start a business checking account with North One Bank. And you'll receive $75 each time you refer another business owner.

 5. A Business Website or Facebook Business Page 

This should have been closer to the top of the list. I see so many funding applications declined because a business can not be easily found on the web. Having an internet presence is important for your business to look professional. You can get a free domain with Bluehost and they have hundreds of Wordpress website templates starting at just $2-3 dollars. Start today! Lenders want to know you are a legitimate business.

 6. Virtual business phone number

Not only is answering your phone calls in a professional manner important for your success. Lenders will call the business phone number to verify your business before approving or declining your business credit application. Grasshopper offers a free trial for their virtual phone service. Grasshopper's minimum plan is just $24.00 per month and they provide 3 extensions, call transferring and forwarding, a fax line, instant response, custom greetings, and more. 

 7. Get a Business Address

Working in an actual office building may seem like a thing of the past with so many home-based businesses these days. However, lenders do google the address on the application. If you stated you are not a home-based business on the application but they google the address and it's not a commercial building, your credit application could get delayed or declined. Opus is one of the most popular agencies to offer a virtual business address. It's perfect for those who don't need an actual building, just need to look like they have one. Opus offers a LIVE receptionist to answer calls or just a corporate mailing address.  Having a virtual business address solves many problems for entrepreneurs and small business owners.

8. List yourself!

Make sure your business can easily be found on the internet and business white pages. I recommend

9. Get a Business Credit Card

The American Express Business credit card is one of my favorites. It has no annual fee and 1-2% cash back rewards.

10. Build Business Credit Score Fast with Nav 

Last but certainly not least, Nav is a quick and easy way to start building a business credit score. When choosing the business boost product which ranges from $35 to $45 per month. Nav reports your payments to the business credit bureaus. You can check your business credit score on Nav right now!

The following steps should be taken to work on your personal credit while building business credit

 Obtain a copy of your personal credit report and scores.

You can get the three major credit reporting agencies: Experian, Equifax, and TransUnion from MyScoreIQ for a $1 trial. Once you have your credit report, you will need to look for any negative marks. These marks can be caused by late payments, collections, or charge-offs. If you see any negative marks, you will need to dispute them with the credit reporting agency.

Boost your credit score by Reporting Rent Payments

Signing up with Boom or Rent Reporters can help your credit score. They Both agencies can even go back 24 months. Some people see a 30 to 40 point credit score boost within 30 days. Boom reports to all three credit bureaus. Rent Reporters only reports to TransUnion and Equifax at the time this time.

Once you taken all the steps mentioned above and obtained a copy of your credit report, you will need to start building up your business credit history. You can do this by taking out small business loans and paying them back on time. You can also use a business credit card to make purchases and pay the balance in full each month. By building up a positive credit history, you will eventually be able to get approved for business credit and loans, even if you have bad personal credit. I'm sure this was a lot of information to take in which is why I have a business credit resource with E-Book.


Do you have bad personal credit but need business credit? What steps have you taken in order to get approved? Do you already have business credit and need fast business funding or a cash advance? Let us know in the comments!

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