Your overall financial health depends on your credit score. 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. You can't rely on one credit bureau for accurate credit scores.
Equifax
Equifax is a credit score provider that has been around since 1996. These reports include public records and 12-month payment history. Also, they contain comments made by former credit grantors. These reports can be used to help consumers apply for credit or establish credit limits. Businesses can also use the information in these reports to monitor their financial health.
Equifax has two different scores for companies: a credit risk score and a business failure score. The credit score is a number that ranges from one to nine hundred. It indicates how credit-worthy a company. The business failure score, however, is between one thousand and twelve hundred. It measures how likely a company is to fail in the next twelve-months.
Experian
An Experian credit score, which is used to measure a business' risk for defaults and delinquent payments, can range from one to 100. 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 takes information from public records and demographic information. Lenders consider businesses with scores of one to ten high-risk. Businesses with scores of eleven to fifty five are considered moderate-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 can determine whether or not you're approved for a loan or credit card. A high score will likely get you approved for the loan or credit you apply for, while a low score can result in a loan rejection.
TransUnion
TransUnion, a credit score company, provides free credit reports to all consumers each year. TransUnion also offers identity theft protection and credit monitoring products. However, it has been accused by deceptive market practices. However, this does not render the company a bad one.
TransUnion employs its own algorithm to calculate 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. To avoid damaging their credit scores, they should instead carefully review their credit reports.
Experian business longevity
Experian is a major information provider worldwide. The company assists businesses in developing successful customer relationship management, market 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
If you're looking for a credit score for your business, you can use the Experian Intelliscore Plus. 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. It is impossible to predict exactly how factors will impact your business score. However, you can use the data for informed decisions. Your payment history is one of the most important aspects of your score. Your score will improve if you avoid late payments and delinquent account.
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 o of current payment status, percentages of delinquent accounts, overall trade balance, and the percentage of defaulted accounts.