Your credit score is an important indicator of your financial health. When you apply for a loan, lenders use your score to determine how much you will pay for the loan. Unlike consumer credit scores, the business credit score is not standardized and varies from bureau to bureau. In other words, you cannot depend on one credit bureau in order to get accurate credit scores.
Equifax
Equifax has been in the credit score business since 1996 and now provides reports to consumers. These reports include public records and 12-month payment history. Also, they contain comments made by former credit grantors. These reports can be used by consumers to request credit or set credit limits. These reports are also helpful for businesses, as they help them track their financial health.
Equifax gives companies two different scores: a credit risk score or a business failure score. The credit risk score can be a number from one to ninety-nine hundred. This indicates how creditworthy a company. 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 signifies a lower risk. Experian calculates the score by using over 800 variables. These include information derived from legal filings or credit card companies. It also collects information from public records, 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 of 76 to 100 indicates low-to medium risk. A score of seventy five to one hundred is considered acceptable.
Your Experian credit score is a key indicator of whether you will be 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 provides consumers with a free credit score every year. TransUnion also offers identity theft protection and credit monitoring products. The company was accused of using deceptive advertising practices. However, this does not render the company a bad one.
TransUnion uses its own algorithm when calculating credit scores. This is a reflection of TransUnion's credibility and ability to assess risk. However, consumers should not rely on TransUnion credit scores solely for making decisions regarding credit cards, mortgages, or auto loans. Rather, they should carefully monitor their credit reports to avoid making mistakes that can damage their credit scores.
Experian Business Lasting Vitality
Experian ranks among the top information providers worldwide. The company assists businesses in developing successful customer relationship management, market and risk management strategies. Experian's business longevity report gives a detailed overview of a company’s credit history and predicts its likelihood of falling behind in the next twelve months.
Experian Intelliscore Plus
Experian Intelliscore Plus will give you a credit score for you business. The model uses over 800 owner and company data points to create a single score. Experian's proprietary formula determines how the scores are calculated. 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 plays a major role in your score. You can improve your score by avoiding late payments or delinquent transactions.
Your credit score is essential for getting a loan. The Intelliscore is preferred by many lenders as a reliable indicator of your likelihood of defaulting on your payments. The score is based on a combination of current payment status, percentage of delinquent accounts, and overall trade balance.