![]() And instead of remaining private, a business's credit information may be accessible to anyone for a fee. While a standard 300 to 850 range is used for personal credit, business credit scores are usually measured from 1 to 100 (Equifax uses a 101-to-992 scale). How business credit scores differ from personal credit scoresīusiness and personal credit do differ. Good business credit scores may help your business obtain: Lenders, insurers, investors, vendors, suppliers and others may use a business's credit scores to gauge how reliable a business may be as a borrower, client or partner. Since they each use slightly different business credit scoring models, your results may differ across them. They also use information from those you've done business with, such as vendors, suppliers and lenders, to estimate the business's risks-such as delinquent payments or potential to go out of business.ĭun & Bradstreet, Equifax® and Experian® are the largest business credit bureaus. How business credit scores are calculatedīusiness credit bureaus use information like a business's size, payment history, credit use and industry type to calculate its credit scores. Simply put, earning good business credit scores may help save you money and appear more favorable to those you do business with, like lenders or investors. Established business credit can also help separate your personal and business credit. Maintaining good business credit can increase your borrowing power and minimize risks to your financial standing. ![]() Your business credit scores may be used to determine what financing, contract terms or insurance rates your company is eligible for. Usually, the higher a business's credit scores, the healthier the business's finances. A business's credit scores are based on information contained in its credit profile, such as payment histories, debts, public records and more. Like a personal credit score, they're used to predict how likely the business is to miss a payment in the future. Proactively monitoring your credit report is a great way to help stay in control of your finances, and ultimately achieve your goals.A business's credit scores indicate how risky it might be to lend a business money. A good credit history and credit score may be the difference between being able to purchase a home, buy a car, or pay for college. Responsibility is keyĪbove all, it’s important to use credit responsibly. To learn more, view How your credit score is calculated.ĭid you know? Wells Fargo offers eligible customers complimentary access to their FICO ® Score - plus tools, tips, and much more. Lenders use your credit score to help evaluate your credit risk – generally, the higher your credit score, the lower your risk may be to the lender. Scores can also be referred to as credit ratings, and sometimes as a FICO ® Score, created by Fair Isaac Corporation, and typically range from 300 to 850.įICO ® Scores are comprised of five components that have associated weights: Your credit score is a numerical representation of your credit report that represents your creditworthiness. If you spot an error on one of your consumer reports, you should submit a dispute to the agency. ![]() It’s a good idea to request a credit report from each of the three credit reporting agencies and to review them carefully, as each one may contain inconsistent information or inaccuracies. You’re also entitled to see your credit report within 60 days of being denied credit, or if you are on welfare, unemployed, or your report is inaccurate. You can request a free copy of your credit report from each of three major credit reporting agencies – Equifax ®, Experian ®, and TransUnion ® – once each year at or call toll-free 1-87. Financial issues that are part of the public record, such as bankruptcies and foreclosures, are included, too. It also documents each time a lender requests your credit report, as well as instances where your accounts have been passed on to a collection agency. It includes your personal information and lists details on your past and current credit accounts. Your credit report provides a detailed summary of your reported credit history. What can lenders see on your credit report? ![]() When you apply for credit, lenders can request this document from one or more of the consumer reporting agencies (Experian ®, Equifax ® and TransUnion ®) to help assess how risky it is to lend to you. Your credit report tells potential lenders how responsible you’ve been with credit in the past.
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