Your credit score is an important indicator of your financial health. Your score is used by lenders to determine the loan amount. Business credit scores are not as standardised as consumer credit scores. They can also vary from bureau-to-boulevard. That means that you can't depend on a single credit bureau to get accurate credit scores.
Equifax
Equifax, which is in the credit scoring business since 1996, provides consumer reports. These reports contain public records, 12-month history of payments, and comments by credit grantors in the past. These reports can also be used by consumers to set credit limits and apply for credit. These reports are also helpful for businesses, as they help them track their financial health.
Equifax has two different scores for companies: a credit risk score and 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, 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 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. Higher risk means a higher score. Experian calculates the score by using over 800 variables. These include information obtained from credit card companies and legal filings. It also takes information from public records and demographic information. Businesses with a score of one to ten are considered high-risk by lenders, while those with a score of eleven to fifty-five are considered 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 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 provides consumers with a free credit score every year. TransUnion also offers identity theft protection and credit monitoring products. But the company has been accused of deceptive marketing practices. The company is not a bad company, it's just deceptive marketing practices.
TransUnion has its own algorithm for calculating credit scores. 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. Consumers should be careful to monitor their credit reports and avoid making any mistakes that could cause credit scores to plummet.
Experian Business Lifespan
Experian is the world's largest information provider. Experian assists businesses in implementing successful customer relations management, marketing, 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 provides a way to get a credit score that will work for your business. The Experian Intelliscore Plus model takes over 800 points of data from business owners to calculate one score. Experian has developed a proprietary formula to calculate scores. Although it is impossible for you to determine exactly what factors affect your score, the data can help you make informed decisions. Your payment history is one important aspect of your score. Your score will improve if you avoid late payments and delinquent account.
It is important to have a good credit score in order to get a loan. Intelliscore, which is a reliable indicator that your business may default on its payment obligations, is preferred by many lenders. The score is a combination of your current payment status, the percentage of delinquent account and your overall trade balance.