Your overall financial health is affected by your business credit score. When you apply to a loan, lenders will use your score as a guideline for how much you will need to pay. Unlike consumer credit scores, the business credit score is not standardized and varies from bureau to bureau. 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 include public records and 12-month payment history. Also, they contain comments made by former credit grantors. Consumers can use these reports to apply for credit and set credit limits. These reports are also helpful for businesses, as they help them track 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 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
A company's Experian Credit Score is a number ranging from one to one hundred. It is calculated by a risk factor such as defaults and late payments. A lower score means that you are at greater risk. Experian calculates the score by using over 800 variables. These include information obtained from credit card companies and legal filings. 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 76-100 represents low-to-medium risk, and a score of seventy-five to one hundred is considered good.
Your Experian credit score will determine whether you are approved for a loan, credit card or other financial products. A high score will be likely to get approved for the loan or credit that you apply for. Conversely, a low score might result in loan rejection.
TransUnion
TransUnion provides consumers with a free credit score every year. TransUnion also offers credit monitoring and insurance to protect consumers against identity theft. However, it has been accused by deceptive market practices. This does not mean that the company is a bad business.
TransUnion employs its own algorithm to calculate credit scores. This reflects the trust and expertise of TransUnion in assessing risk. 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 Lasting Vitality
Experian is the world's largest information provider. The company helps businesses implement successful customer relationship 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 provides a way to get a credit score that will work for your business. This model pulls over 800 company and owner data points to calculate a single score. Experian's proprietary formula is used to calculate 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. One of the most important factors in your score is your payment history. 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. The Intelliscore is preferred by many lenders as a reliable indicator of your likelihood of defaulting on your payments. The score is calculated using a combination the current payment status and percentage of delinquent customers.