Business credit scores: How to manage, monitor, and make them work for you

From there, two habits carry the most weight: paying bills on time and keeping your credit utilization low. Late payments and maxed-out credit lines send red flags to lenders and can drag down your score quickly. Making payments in full, or at least by the due date, shows that your business is reliable and financially sound.

Work with vendors that report payments

Even if you pay every bill on time, it won’t help your score unless those payments are reported to the credit bureaus. Not all vendors and suppliers report payment history, which means you could be missing out on opportunities to build credit.

Before entering into long-term agreements, ask whether a vendor reports to Dun & Bradstreet, Experian, or Equifax. If they don’t, consider working with partners who do, especially for recurring purchases or key supply chain relationships. Over time, these reported payments help establish a positive track record that boosts your score.

Keep credit lines open

It can be tempting to close unused credit accounts, especially if you’re streamlining your finances. But older accounts help establish the length of your credit history—a factor that can strengthen your score. Keeping accounts open, even if you use them occasionally, can work in your favor.

The exception? If a credit line comes with high fees or puts your business at risk of overextending, it may be worth closing. Just be strategic and avoid shutting down multiple accounts at once, which could impact your available credit and overall utilization ratio.

How QuickBooks can help

Building business credit is easier when you have full visibility into your financial activity. QuickBooks connects your business accounts, credit cards, and vendor payments in one place, so you can track what’s going out and what’s coming in, without the guesswork.

By helping you stay on top of due dates, manage your cash flow, and spot potential issues early, QuickBooks gives you the tools to maintain a strong financial profile. And when it’s time to apply for credit or funding, you’ll have accurate records that demonstrate your business’s financial health.

How to use your business credit score strategically

Your business credit score isn’t just a measure of financial responsibility, it’s a tool you can use to strengthen your position when it counts. With a strong score, you have more leverage to negotiate better payment terms with suppliers, qualify for lower interest rates on loans, and access larger lines of credit.

This flexibility becomes especially valuable when your business is preparing for growth or navigating seasonal slowdowns. A high credit score makes it easier to secure funding before you actually need it, giving you a cushion to manage cash flow or jump on new opportunities. Instead of reacting to financial pressure, you can plan ahead with confidence.

By maintaining a strong credit profile, you also build credibility with banks, investors, and partners. It signals that your business is well-managed and ready to scale, on your terms.

Timing matters: heck your score before major moves

Before applying for a loan, negotiating a lease, or making a large purchase, it’s smart to check your business credit score well in advance. Lenders and insurers often review your credit as part of their approval process, so spotting issues early gives you time to correct errors or pay down balances.

Ideally, start monitoring your score a few months before making any major financial move. That window gives you time to clean up any red flags and present your business in the best possible light. A strong, well-timed credit profile can be the difference between a good offer and a great one.

Common mistakes that hurt your score and how to avoid them

Even a few small missteps can cause your business credit score to drop, and recovering takes time. One of the most common mistakes is missing payments, even by a few days. Payment history is heavily weighted in most scoring models, and late payments can signal risk to lenders and suppliers.

Overutilizing your available credit is another red flag. Using too much of your credit line, even if you’re making payments, can make your business look overextended. And mixing personal and business expenses can muddy your financial records, making it harder to build a clear credit profile for your company.

Another issue? Letting your credit reports go unchecked. Errors happen, especially when multiple agencies are involved, and if you don’t spot them early, they can unfairly drag down your score. Make it a habit to review your reports and dispute any inaccurate or outdated information.

How to recover from a drop in your score

If your score has taken a hit, rebuilding is possible, but it starts with consistency. Reach out to vendors or lenders and ask if you can renegotiate payment terms to catch up without damaging your credit further. Many are willing to work with businesses that communicate proactively.

To reestablish positive credit activity, consider using a secured business credit card or opening a low-limit credit line. Use it for small, recurring expenses and pay it off in full each month. These small wins add up, and over time, they can help restore your score and rebuild trust with creditors.

Take control of your business credit health

Regularly checking your business credit score helps you stay prepared for growth and avoid financial setbacks. QuickBooks accounting software gives you the tools and visibility to keep your finances organized and your business lender-ready.

Your business credit score is a key asset for securing better financing and building strong vendor relationships. Get started with QuickBooks today to simplify your financial management and take control of your business’s credit health.