Most lenders take a close look at a company's business credit score, before considering to lend them any amount of money. Credit experts suggest that you start building on your Paydex score from 3 to 6 months in advance, before you begin applying for a loan. By monitoring your business credit score, you'll be quickly notified whenever your score needs to be improved. Collection Proceedings In evaluating your business credit report's collection proceedings, find out whether you have a history of letting your bills lapse, or whether some of your accounts have been sent to collection. Remember that some of your late payments could come as a result of other financial issues, or a dispute with your supplier. The classic case of over-utilization of credit cards happens when the individual runs out their balance, or goes over their credit limits, and only pays the minimum amount each month to avoid further financial problems. Always make it a habit to use your credit cards only when required, and always settle your balances as soon as possible. If you only charge your card for the items that you can afford to pay, then you won't need to wrangle with any future debt problems By paying your credit card's balance every month, this would indicate that you're capable of paying your bills, and will send a positive signal to most creditors and lenders. By consistently paying your bills on time, whether they are credit cards or utility bills, insurance premiums, parking tickets and even library fines, your credit score will be further enhanced. Late bill or loan payments generally cut as much as 100 points from your credit score, which reduces your chances of availing loans and other forms of credit. However, bankruptcy surely doesn't mean it's the end of the world for you. While bankruptcy can have a major effect on your credit score, it won't mean that you'll never be able to avail of credit again. While the recovery process may be quite long and stressful, and sometimes you ll only be left with nothing with your shirt on your back, or your pants and shoes, there is always light at the end of the dark tunnel.