One of the most common pitfalls for small business owners trying to establish business credit is working with vendors who don’t reliably report to the major business credit bureaus—Dun & Bradstreet, Experian, and Equifax. This mistake can cost you time and money, all while providing little to no benefit to your business credit score.
A Growing Issue
This isn’t a new problem, but it’s become more prevalent as misleading information circulates online. You’ve probably come across lists touting “30 vendors to build business credit,” seen articles, blog posts, or even YouTube videos claiming to have a magic list of vendors that will help you build your credit. The truth? Many of these vendors don’t reliably report at all.
So, how can you avoid wasting your time and money? Let’s break down some red flags to watch out for.
Red Flags to Watch Out For
- Overtly Advertise Reporting to Credit Bureaus
Reliable vendors don’t usually advertise that they report to business credit bureaus—they just do. On the other hand, vendors that plaster “We report to business credit bureaus” all over their homepage often don’t follow through.Many of these vendors claim they report to credit bureaus, but often they only report to lesser-known bureaus like Creditsafe, which is almost useless when it comes to getting real approvals. None of the major no PG vendors use Creditsafe for approvals. At best, some of these vendors might report to Equifax. You are far better off saving your money and buying from reliable vendors—true companies that report to bureaus that matter for future approvals.
We see countless clients who come to us after wasting a year or more buying from unreliable vendors, only to not even have a Paydex score. After wasting time and hundreds or even thousands of dollars, they find themselves still on the first layer of building real business credit.
- Low-Quality Products
Be wary of vendors selling low-quality, over-priced products. Some vendors are essentially drop-shippers who mark up their products by 100-200%. Business owners, eager to establish a trade line, might pay these inflated prices, but the products are usually not something you’d buy for your business otherwise. If the product quality doesn’t justify the price, it’s likely the vendor is more interested in exploiting the need for trade lines than in providing genuine value. - Affiliate Marketing Programs
Many unreliable vendors have affiliate marketing programs, which is where the problem often starts. You’ll see blog posts or videos listing vendors that allegedly report to the credit bureaus, but these are frequently just affiliate links designed to generate commissions. If a vendor’s website prominently advertises an affiliate program, proceed with caution. - Membership Fees
Vendors charging a membership fee just to have an account with them are often unreliable. These fees can be a red flag, indicating the vendor’s primary focus may be extracting money from you rather than reporting your trade lines.
What You Should Do Instead
To avoid these pitfalls, only work with vendors that reliably report your business credit activity. At TrueBuild, we only include vendors in our program that have been fully vetted. Having reviewed thousands of business credit reports over the years, we know which vendors consistently report to the major bureaus and which do not.
Don’t fall into the trap of spending money with vendors who won’t help you build your business credit. Stick with trusted, verified vendors to ensure that your business credit is built on a solid foundation.
Save your time. Save your money. Only work with vendors that will reliably report your trade lines.
