Your overall financial health is affected by your business credit score. Your score is used by lenders to determine the loan amount. Business credit scores are not as standardised as consumer credit scores. They can also vary from bureau-to-boulevard. This means you cannot rely on one credit bureau to provide accurate credit scores.
Equifax
Equifax has been offering credit score reports since 1996. These reports contain public records, 12-month history of payments, and comments by credit grantors in the past. These reports are available to consumers for purposes of applying for credit and setting credit limits. The information contained in these reports is also useful for businesses as it helps them keep track of their financial health.
Equifax provides two different scores to companies: a score for credit risk and a score for business failure. The credit risk score measures how credit-worthy a company. It ranges between one to nine hundred. The business risk score is a number that is between one and ninety-nine hundred. This is based upon how likely it is for a company to fail in the next 12 month.
Experian
A business's Experian credit score is a number between one and one hundred that is calculated based on the risk of defaults or delinquent payment. A lower score means that you are at greater risk. Experian calculates your score using more than 800 variables. These include information from legal documents and credit card companies. It also includes information from public files and demographic information. Lenders are more likely to consider high-risk companies with scores greater than ten. Businesses with scores between ten and fifty-five are considered low-risk. A score of 76-100 is considered to be low-to middle risk. A score seventyfive to one hundred can be considered good.
Your Experian credit score could determine whether you get approved for a loan. A high score is more likely to be approved for the loan/credit that you apply, while a lower score can lead to rejection.
TransUnion
TransUnion, a credit score company, provides free credit reports to all consumers each year. TransUnion also offers credit monitoring and insurance to protect consumers against identity theft. The company was accused of using deceptive advertising practices. It should be noted that this does not make the company a bad business.
TransUnion's credit scoring algorithm is its own. This reflects its expertise in risk assessment and credibility. TransUnion credit scores cannot be relied on by consumers to make decisions regarding auto loans, mortgages, credit cards or other financial products. To avoid damaging their credit scores, they should instead carefully review their credit reports.
Experian business longevity
Experian is one of the largest information providers in the world. Experian assists businesses in implementing successful customer relations management, marketing, and risk management strategies. The Experian business longevity report provides a summary of a company's credit history and predicts its risk of delinquency in the next 12 months.
Experian Intelliscore Plus
Experian Intelliscore Plus will give you a credit score for you business. This model pulls in over 800 owners and company data points to produce a single score. Experian's proprietary formula calculates the scores. Even though it's impossible to know what factors have an impact on your score as a business owner, you can make informed decisions based on the data. Your payment history plays a major role in your score. You can improve your score by avoiding late payments or delinquent transactions.
A credit score for your business is an important part of getting a loan for your business. Many lenders prefer to use the Intelliscore because it is a reliable indicator of the risk that your business will default on its payments. The score is a combination of your current payment status, the percentage of delinquent account and your overall trade balance.