How Do I Build Business Credit?
Ten steps to build a business credit profile: entity, EIN, D-U-N-S number, reporting trade accounts, business cards and monitoring.
Form an LLC or corporation, get an EIN, make your business details consistent, open a business bank account, get a free D-U-N-S number, open Net 30 trade accounts with suppliers that report to business credit bureaus, use a business credit card lightly, pay everything on time or early, and monitor your reports.
In this article
- Business credit vs personal credit
- Step 1: Set up your business as its own entity
- Step 2: Get an EIN
- Step 3: Make your business look established
- Step 4: Open a business bank account
- Step 5: Get a D-U-N-S number
- Step 6: Open trade accounts that report
- Step 7: Get a business credit card
- Step 8: Pay everything on time, every time
- Step 9: Monitor your business credit reports
- Step 10: Graduate to bigger credit
- Business credit card vs line of credit
- A 12-month business credit plan
- How long does it take?
- Business credit mistakes to avoid
- FAQ
Business credit is a credit history tied to your company, separate from your personal credit. A strong business credit profile can help you qualify for loans, credit lines and better supplier terms, and over time it reduces how much lenders rely on your personal credit and personal guarantee. Building it takes deliberate steps, because business credit doesn't build automatically.
Business credit vs personal credit
| Personal credit | Business credit | |
|---|---|---|
| Tied to | Your Social Security number | Your business and its EIN |
| Main bureaus | Equifax, Experian, TransUnion | Dun & Bradstreet, Experian Business, Equifax Business |
| Common scores | FICO, VantageScore (300 to 850) | D&B PAYDEX (1 to 100), Experian Intelliscore Plus, FICO SBSS |
| Who can see it | Requires a permissible purpose | Generally available to lenders, suppliers and others |
For new and small businesses, lenders still look closely at the owner's personal credit, so keep both healthy.
Step 1: Set up your business as its own entity
Business credit attaches to a business, not to you. Form an LLC or corporation with your state. Sole proprietors can build some business credit, but it's harder because the business and owner are legally the same. See how to start an LLC.
Step 2: Get an EIN
An Employer Identification Number is your business's federal tax ID. Apply free at IRS.gov.
Step 3: Make your business look established
- Use a business address (not a P.O. box), consistent everywhere.
- Get a business phone number listed in directories.
- Have a professional website and a business email address at your domain.
- Get the business licenses and registrations your business needs.
Lenders and bureaus check that your business details match across records.
Step 4: Open a business bank account
A dedicated business checking account separates your finances, builds a banking relationship, and is usually required for business credit cards and loans.
Step 5: Get a D-U-N-S number
Dun & Bradstreet creates business credit files tied to a unique nine-digit D-U-N-S number. You can get one free from D&B; ignore paid upsells you don't need. Some government contracts and suppliers require it.
Step 6: Open trade accounts that report
Trade credit, where a supplier lets you buy now and pay later (often on Net 30 terms), is one of the fastest ways to build business credit, as long as the supplier reports payments to business credit bureaus. Ask suppliers whether they report, start with small purchases, and pay early or on time.
PAYDEX tip: Dun & Bradstreet's PAYDEX score is based on how promptly you pay vendors. Paying on time earns a good score, and paying before the due date can push it higher.
Step 7: Get a business credit card
Many business credit cards report to business credit bureaus. Use the card regularly for routine expenses, keep balances low relative to the limit, and pay in full every month. Note that most small business cards still require a personal guarantee, and some issuers report to personal bureaus too.
Step 8: Pay everything on time, every time
Payment history is the biggest factor in business credit, just like personal credit. Automate payments where you can, and track due dates for suppliers, loans and cards.
Step 9: Monitor your business credit reports
Check your reports with Dun & Bradstreet, Experian and Equifax periodically. Make sure your business details are correct, look for errors or accounts you don't recognize, and dispute mistakes with the bureau.
Step 10: Graduate to bigger credit
As your history grows, apply for a business line of credit, equipment financing or an SBA loan. Lenders will weigh your business credit, revenue, time in business and personal credit together. Read how to get a small business loan.
Business credit card vs line of credit
| Business credit card | Business line of credit | |
|---|---|---|
| Best for | Everyday purchases and building history | Cash flow gaps, larger or seasonal expenses |
| Access | Card purchases | Transfers to your bank account |
| Typical cost | Interest if you carry a balance; possible annual fee | Interest on what you draw; possible fees |
| Rewards | Often cash back or points | Rarely |
| Ease of approval | Easier, especially for new businesses | Usually requires time in business and revenue |
A 12-month business credit plan
| Months | Actions |
|---|---|
| 1 | Form your LLC, get an EIN, open a business bank account, set up a consistent address and phone |
| 1 to 2 | Get a free D-U-N-S number; open two or three Net 30 trade accounts that report |
| 2 to 3 | Apply for a business credit card; use it for routine expenses and pay in full |
| 3 to 6 | Pay every vendor early; add more reporting vendors; check that accounts appear on your reports |
| 6 to 12 | Monitor and correct reports; request higher limits; consider a small line of credit |
How long does it take?
A business credit file can appear within a few months once trade accounts start reporting. Building a strong profile that meaningfully improves your borrowing options usually takes a year or more of consistent, on-time payments.
Business credit mistakes to avoid
- Using personal accounts and cards for business expenses.
- Inconsistent business name, address or phone across records.
- Assuming every vendor reports payments (many don't).
- Maxing out business credit cards.
- Paying for "guaranteed business credit" programs that promise instant results.
Pay suppliers on time and get paid on time. Send clear invoices with due dates.
Create an invoiceFrequently asked questions
How do I start building business credit?
Form an LLC or corporation, get an EIN, open a business bank account, get a free D-U-N-S number, open trade accounts with suppliers that report to business credit bureaus, use a business credit card responsibly, and pay every bill on time.
Does business credit affect personal credit?
They're separate files, but they can interact. Many business cards and loans require a personal guarantee, and some issuers report to personal bureaus. Lenders also review the owner's personal credit for small businesses.
What is a good business credit score?
It depends on the score. For Dun & Bradstreet's PAYDEX (1 to 100), 80 or above generally indicates on-time payments. Experian's Intelliscore Plus also runs from 1 to 100, with higher scores indicating lower risk.
Can I build business credit with an EIN only?
You can build a business credit file with an EIN, but most lenders still check the owner's personal credit for small and new businesses, and many products require a personal guarantee.
This article is general information for US readers, not legal, tax or financial advice. Rules, prices and platform policies change, so confirm details with official sources or a qualified professional.