Debt Collection: 3 Pertinent Questions about Credit Rating Answered

credit report of a business

For any business, it is essential to have a high credit rating as it only goes on to prove how trustworthy a business is for lending or borrowing money. And it is not something that can be gained in a short period of time. And the reputation of the business too depends on it.

We, Nelson, Cooper & Ortiz, LLC, are one of the most famous debt collection agencies, based in Houston, TX, that offers efficient and stipulated time-based credit collection services with state-of-art technology helping to make the collection process faster. So, if you want to know more about your business’s credit rating, talk to us right away.

Here are 3 common questions about credit rating with the answers:

  1. Why does credit rating matter so much?
  2. Having a poor credit rating will have drastic effects on your ability to borrow money in the future. Furthermore, it can also bring down the number of your money-lending partners. This is why we, as a renowned agency of credit collection services, always advise our clients to run credit reports on the specific partner to whom they are lending the money. Moreover, your business credit rating can also be affected by how the debt is incurred.

  3. How do credit bureaus form the credit report of a business?
  4. Credit card companies and banks update credit bureaus with the payment activity and outstanding debts of a particular business routinely. Many companies of industry credit groups also do it. Debt collection agencies report debts too. Outstanding debts and reports of debts being sent to collection agencies are big red flags and can have a very negative impact on a business’s credit ratings.

  5. How to protect credit rating?
  6. The best way is to clear all your debts on time. The more you do this for your credits, the better your rating will be. If you cannot pay the debt for some reason, let your creditor know about it. If a debt collection agency calls you, do not ignore the calls. Find out all the information about the debt. And keep a record of the agreements made. Another important thing is to keep checking your credit reports to not miss an issue.

If you want to know more about credit ratings and how you can make yours better, contact Nelson, Cooper & Ortiz, LLC. Call us at (800)99 7213 or visit www.prelitigation.com today.