Credit Score Myths: What Every Business Owner Should Know

Credit scores are often shrouded in mystery, leading to many misconceptions that can hinder business owners. In this blog, we will debunk common credit score myths that could negatively impact your business. For instance, one prevalent myth is that only large businesses need to worry about their credit scores, when in fact, small businesses are equally affected. Another misconception is that checking your credit score will lower it, which is not true for soft inquiries. Understanding how credit scores work and the factors that influence them—like payment history, credit utilization, and credit inquiries—can empower you to manage your business credit effectively. We’ll also discuss actionable steps you can take to improve your credit score and why monitoring your business credit regularly is essential. By dispelling these myths, you can make informed decisions that support your business’s financial health.