Your credit score is an important indicator of your financial health. Lenders use your score when you apply for a loan. They then determine the amount you will have to pay. The business credit score, unlike consumer credit scores is not standard and can vary from one bureau to the next. This means you cannot rely on one credit bureau to provide accurate credit scores.
Equifax
Equifax is a credit score provider that has been around since 1996. These reports contain public records, 12-month history of payments, and comments by credit grantors in the past. These reports can be used to help consumers apply for credit or establish credit limits. This information is also valuable for businesses because it allows them to keep track of their financial health.
Equifax gives companies two different scores: a credit risk score or a business failure score. The credit risk score is a number between one and nine hundred and indicates how well-credit-worthy a company is. The business failure score is a number between one and nine hundred. It is calculated based on how likely it is that a company will fail in the next twelve months.
Experian
An Experian business credit score is a number that ranges from one up to one hundred. It's calculated using a risk factor of late payments or defaults. A higher number means lower risk. Experian uses 800 variables to calculate your score. These include information from legal filings and credit card companies. It also includes information from public files and demographic information. Lenders will consider high-risk businesses with scores between one and ten. Companies with scores between eleven and fifty-five and five to five are considered to be medium-risk. A score between 76 and 100 is considered low-to-medium-risk, while a score between seventy-five and one hundred is considered to be good.
Your Experian credit score may determine whether or not your application is approved for credit cards or loans. A high score will most likely get you approved to apply for the loan or credit, while a low score may result in rejection.
TransUnion
TransUnion is a credit score business that provides a free credit report to consumers every year. TransUnion also offers identity theft protection and credit monitoring products. However, the company has been accused in deceptive marketing practices. However, this does not render the company a bad one.
TransUnion uses its own algorithm to calculate credit scores. This reflects the trust and expertise of TransUnion in assessing risk. TransUnion credit scores should not be relied upon by consumers for decisions about credit cards, auto loans, and mortgages. They should monitor their credit reports carefully to avoid any mistakes that may damage their credit score.
Experian Business Longevity
Experian ranks among the top information providers worldwide. 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 can help you determine your credit score. This model pulls over 800 company and owner data points to calculate a single score. The scores are calculated based on Experian's proprietary formula. While it is impossible that you know all the factors that impact your business score and how they affect your score, you can still use the data to make informed decision. Your payment history is an important factor in your score. Avoid late payments and delinquent accounts to increase your score.
A credit score for your business is an important part of getting a loan for your business. Intelliscore is used by many lenders to determine the likelihood that your business will default. The score is calculated based on the current payment status, percentage delinquent accounts and total trade balance.