An Employer Identification Number (EIN) is a nine-digit tax identification number issued by the IRS to businesses. While it is not possible to establish a personal credit score using an EIN, you can build business credit using your EIN.
Here are some steps you can take to build credit with your EIN number:
Incorporate your business: You can incorporate your business as an LLC or corporation to establish it as a separate legal entity from yourself. This will help build business credit separate from your personal credit.
Obtain a D-U-N-S number: Dun & Bradstreet (D&B) is a business credit reporting agency that assigns a unique nine-digit D-U-N-S number to each business. You can apply for a D-U-N-S number for free on the D&B website.
Open a business bank account: Opening a business bank account in your business’s name is an essential step in building business credit. Make sure to pay all bills on time and keep a positive balance in your account.
Apply for a business credit card: Applying for a business credit card can help you establish credit for your business. Make sure to use the card responsibly and pay off the balance on time each month.
Make on-time payments: Paying your bills on time is one of the most important factors in building business credit. Make sure to pay your bills, such as loans, credit cards, and vendor payments, on or before the due date.
Monitor your credit reports: Keep an eye on your business credit reports to ensure that all the information is accurate and up-to-date. Correct any errors immediately to prevent them from negatively impacting your credit score.
Building credit with your EIN number takes time, so be patient and consistent with your efforts. With time and responsible credit use, your business can establish a strong credit profile and access better financing options.