Your credit score is an important indicator of your financial health. Your score is used by lenders to determine the loan amount. Unlike consumer credit scores, the business credit score is not standardized and varies from bureau to bureau. That means that you can't depend on a single credit bureau 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. 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, which is between one and nine hundred, indicates how credit-worthy a company. The business failure score, on the other hand, is a number between one thousand and is based on how likely a company will fail within the next 12 months.
Experian
An Experian credit score for a business is a number from one to one hundred based on a risk factor for delinquent payments and defaults. A lower score means that you are at greater risk. Experian calculates the score by using over 800 variables. These include information from legal documents and credit card companies. It also pulls information from public records and demographic data. 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 may determine whether or not your application is approved for credit cards or loans. 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. It also provides identity theft insurance and credit monitoring products. However, the company has been accused in deceptive marketing practices. The company is not a bad company, it's just deceptive marketing practices.
TransUnion's credit scoring algorithm is its own. This reflects its expertise in risk assessment and credibility. TransUnion credit scores are not sufficient to make decisions about auto loans, mortgages or credit cards. Instead, consumers should closely monitor their credit reports in order to avoid making credit-related mistakes that could damage their credit scores.
Experian Business Longevity
Experian ranks among the top information providers worldwide. The company assists businesses in developing successful customer relationship management, market and risk management strategies. Experian provides a summary on a company's credit history that predicts its risk to delinquency within the next 12months.
Experian Intelliscore Plus
Experian Intelliscore Plus can help you determine your credit score. The model uses over 800 owner and company data points to create a single score. Experian's proprietary formula is used to calculate the scores. 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 an important factor in your score. To improve your score, avoid late payments and delinquent accounts.
It is important to have a good credit score in order to get a loan. Intelliscore is used by many lenders to determine the likelihood that your business will default. The score is calculated using a combination the current payment status and percentage of delinquent customers.