It is important for everyone to have good credit. However, if you are a small business owner, then it is even more important for you to establish good credit. You may need to take out a small business loan at some point, and it will be a lot easier for you to get approved for a loan if you have good credit. Below are some ways that you can build your credit without going into debt:

Check Your Credit Report

Experian, Equifax and Transunion are the three major credit bureaus that maintain credit reports. If you have never established credit before, then you should not have a file open with any one of these credit agencies. You should check with every credit bureau to make sure that they do not have a false report in your name.

Many people have bad credit because someone else used their information to take out a loan or credit card. If there is an unpaid balance on your credit report, then it could damage your score for up to seven years. Additionally, a bankruptcy can stay on your report for up to 10 years.

You will also need to check your credit report if you have established credit history. It is estimated that one out of four credit reports have errors, and erroneous information can ruin your credit. If you find any errors, then you should make sure that you report it to the credit bureaus as soon as possible.

Open Up A Bank Account

If you do not already have a checking and/or savings account, then you should consider opening one. Even though your bank account information is not included on your credit report, a company will most likely request if you apply for a credit card or loan. Lending companies want to know that you are financially responsible. If your statements show that you regularly withdraw and deposit money, then that shows lenders that you are financially responsible.

Pay Bills On Time

Your payment history is the biggest factor that determines your credit score. That is why one of the most important things that you can do to build credit is pay your bills on time. Keep in mind that if you miss a couple of payments, then the billing company could send a negative report to all of the major credit bureaus.

Apply For A Secured Credit Card

A secured credit card is a type of credit card that requires you to put a payment on it before you use it. The limit on the credit card is usually equal to the deposit. Most secured credit card companies send a positive report to all of the major credit bureaus if you make payments on time. However, you should keep the balance on the card as low as possible.

Building credit takes a lot of hard work, but fortunately, there are several ways that you can build credit without going into debt. You should check your credit report, open up a bank account and pay bills on time. You may also want to consider applying for a secured credit card.