Whether you’re starting a new business or just looking to get a new credit card, maintaining a good credit score is important. There are many factors that go into your overall credit score. These include your debt, age, number of accounts, and others. The number one factor though, is the frequency in which you pay your bills on time. Late payments hurt your score and can prevent you from getting a loan in the future.
Having a good credit score increases your credit limit, enabling you or your business to borrow more money. This, in turn, can also help boost your credit rating, which is determined by the amount of debt you owe divided by your total debt limit. In other words, the lower your debt is compared to your limit, the better your credit becomes.