It is hard to build a business credit when you are also saving money for a house. Well, here comes the surprise: building business credit can actually be of great use when applying for a mortgage.
You need to separate yourself from your business. You need to form an LLC or corporation as soon as you can. You should never confuse your groceries with your business cash flow. Lenders hate to deal with people who have their finances confused.
You should get an EIN from the IRS – it is free. It is like a Social Security Number of your business. You have to have it before buying any paperclips.
In order to start building your business credit, you should get a DUNS number. The one that controls everything in this sphere is Dun and Bradstreet. They simply do not see you without it. Just go and get it now.
Your life saver will be net 30 credit accounts. Accounts of Uline and Grainger report your payments. Buy some supplies and pay your bill early. Repeat the process.
You do not want to apply for ten credit cards; this only shows that you are desperate. Slow and stable wins this game. Have patience!
Pay attention to your PAYDEX score. It should be at least 80, as it proves that you pay your bills in time or even earlier.
Applying for a mortgage requires you to be stable in your life. If your business is in disorder, it will surely affect the process.