For example, if a collection agency reports that you weren't able to pay overdue parking tickets or library fines, this could make your credit score drop by as much as 100 points. Ensure that you pay your library fines or parking tickets on time, because you won't know when they send these bills to the collection agencies. Before you file for bankruptcy, remember that bankruptcy is not an easy way out of your financial mess, because it will have serious implications on your credit record, and will also seriously hamper your business dealings with other people. Bankruptcy Lowers Credit Scores Whenever a person files for bankruptcy, their credit score will automatically get a 200-point deduction, and this greatly affects their chances of availing for different loans. In order for your business to build a steady business credit profile, you need to employ a number of steps to ensure that your enterprise has a fresh connection with various established lenders and creditors. Here are 5 top tips for building your business credit profile. Establish Your Business As A Separate Unit For starters, build your business credit profile as a separate entity from your personal credit profile. Co-signing also means that the individual you were co-sign for was not able to get the loan without your signature. Always be wary of co-signing a loan, especially if you cannot guarantee that the person will be able to pay his or her payments on time. Continually Keep Your Accounts Active Most creditors and lending agencies would rather prefer to see a verifiable credit history on their clients. Don't Ask For A Higher Limit From Your Credit Card Company If you have a credit card, don't be tempted to call your credit card company and ask for a higher limit, because this can help ruin your credit score. Next, don't open any extra credit card accounts, because by having an extra credit card, or by canceling the other one, you can do major damage to your credit history. The truth is that the major credit bureaus, from Experian, Equifax to TransUnion all have a different term for the same score. TransUnion for example, calls it the Empirica, while Experian calls it the Experian/Honest Isaac Risk Model. While these major companies have different names for the credit score, they still use the same formula for coming up with it.