How Business Credit Scoring Works
What You Need to Know About Business Scores
Experian's Intelliscore Plus and FAQ's
The measurement for Experian's risk model is the Intelliscore Plus. Learn more about their overall criteria for scoring and risk assessment. See the Intelliscore Plus sample report. Experian also offers a wealth of free information covering just about every aspect of business credit - from building and improving to scoring, reporting, lending and more. It's all categorized in an extensive FAQ.
Equifax's Small Business Credit Risk Score
Equifax is more secretive about what their commercial scoring model is based on. However, it's safe to say a large portion of their risk model is based on making timely payments (especially early payments) and keeping your profile free from any open public records, collections, or excessive credit inquiries. The measurement for Equifax's risk model is the Small Business Credit Risk Score. See a sample.
Dun & Bradstreet's Paydex Score
A business Paydex score is tied to your D&B business credit file. It is a statistical measurement of your business' creditworthiness based on reporting trade references and business creditors. In simple terms, a Paydex score of 70 equates to a personal FICO score of 700. You will need a Paydex score of at least 70 to qualify for most business finance programs without requiring a personal guarantor. In order to reach your goal, you will need to have at least five (5) trade references "reporting" to D&B that you pay on time. Learn more about the Paydex Score.
Equifax Small Business credit report
Currently, the majority of U.S. banks provide information to Equifax regarding their business loans and most business credit cards that are issued by banks. By opening accounts with several business credit cards in our system, you will be able to establish and enhance your Equifax small business credit score and profile.
Accessing Your Equifax Business Report
There is a high possibility that your credit profile may not yet be available, particularly if your business is relatively new. It typically takes time to generate a file with Equifax Small Business. This emphasizes the importance of applying for credit with providers who report to Equifax whenever possible. Mostly, it is banks and larger commercial lenders that report to Equifax. Therefore, if you haven't had a bank or commercial loan, it is unlikely that you have an Equifax business report at this point.
Although Equifax used to be the sole business credit reporting agency for all U.S. banks, this is no longer the case as many banks now utilize Experian business credit reports. However, Equifax still holds significant influence in commercial bank lending. Therefore, it is crucial to develop and maintain your Equifax business report and score if you plan to pursue bank-related lending.
If you find errors on your Equifax business credit report you will need to contact
Equifax by submitting this form.
Checking Your Equifax Business Credit Report
To access your Equifax Small Business report you must call them at 844-480-2800. Their online search has been disabled since March of 2020. On the phone they will let you know if your business report exists and provide you with a free copy.
Get a Free Copy
By phone... You can call 844-480-2800 to be mailed a free copy. If a business lender or credit provider has checked your business credit with Equifax Commercial Reports within the last 60 days they will mail a free copy of your Equifax commercial report. Lenders will not pull your Equifax report without your authorization so you should know exactly when a lender has requested it. Remember, it does not matter if you are approved or declined, only that you applied for credit.
By mail... You can get a free copy of your Equifax commercial report, even if you haven't applied for any type of business credit in the last 60 days, by simply mailing your request to:
Equifax Inc.
P.O. Box 844-480-2800
Atlanta, GA 844-480-2800
Your request letter should say, Please forward to mePlease provide me with a copy of the available commercial credit report for my business. Kindly include the exact legal name of my business, business address, EIN number, business phone number, and owner/officer name. It is important to note that if your business is less than 1 year old and you have not yet applied for any form of business credit, there is a possibility that an Equifax Commercial file does not exist for your company. However, if your company is more than 1 year old, Equifax may have a commercial file for your business even if you have not applied for any type of business credit under your company name.
Experian Smart Business provides easy access to your business credit
Experian Business Credit Report
If you're in search of a bank loan, credit cards, or vehicle financing/leasing, your Experian business credit report and score should be your top priority. Revolving credit account issuers, including store and fleet credit cards, often refer to Experian credit reports. You can easily check your Experian Credit Reporting status on the previous page or by navigating to "Check Business Status" on the left-hand side.
If you find an error on your Experian Business Credit Report you should use this link to correct it Correcting Business Credit Report.
Fix - Your Experian Business Credit Report
If Your Business Is Listed...
If your company is listed with Experian, then your Experian business credit report is available for you to review for accuracy. Since the main point is to build business credit, purchasing the Business Credit Advantage plan makes the most sense. It not only allows you to monitor your business credit profile 24/7, but it also provides unlimited access to your up-to-date report and score, along with proactive email notifications when any changes occur.
If you find a listing for your company, but the data has inaccuracies or needs updating, Click the Fix It button below to make corrections to your Experian business credit profile.
If Your Business Is Not Listed...
If your company does not have a listing yet it is because you have no one reporting your business payment history to Experian. Don't worry, your Experian business credit file will open and begin to build as soon as a credit provider reports your first payment. We provide access to those national accounts which will cause your Experian file to open within the first reporting cycle (about 30 days).
Experian is an extremely valuable source for business credit because it receives the majority of its reporting from commercial banks, equipment leasing companies, revolving business credit card accounts, and many trade vendor lines of credit (Net 10, 15 & 30 accounts).
Dun & Bradstreet Business Credit Report
You need a D&B credit file number, or D-U-N-S #, whether your business has an active file or not.
D&B compiles the most reporting data on Net-Terms trade credit and can be the quickest profile to build. Obtaining a Dun and Bradstreet number (D-U-N-S #) begins the process of building your business credit profile with them. Your D-U-N-S # will also play an important role in enabling your business to borrow without a personal guarantor.
D & B credit profiles are mostly checked by vendors looking to issue your firm a line of credit for their products and services or in the government contracting area. Bank type lenders and those lenders who will provide your business with cash loans or cash lines of credit will rarely pull a D & B credit report on your business.
You need to run a search on your company. The search results show if your business currently has a file with Dun & Bradstreet. Depending on your results, you'll want to follow the applicable instructions below.
If you find an error on your Dun & Bradstreet business credit report call the D&B customer service department at 844-480-2800 to have it corrected.
Checking Your Dun & Bradstreet Report
If Your Company Shows Up...
If your company shows up we recommend you sign-up for CreditSignal and here is why:
- Activates your D-U-N-S # and your file gets a D&B Rating. This is very important!
- 24/7 up-to-date access to your D&B credit file along with alerts of any changes to your file.
- Immediate access to your D&B's PAYDEX score and Commercial Credit Score if available.
- Allows you to establish and enhance your Paydex® Score by adding your best credit references. D&B will verify the credit reference for you and update your credit profile.
The most important thing for now is that you at least know your D-U-N-S number and have an active file prior to setting up accounts and making purchases with any of the reporting vendors in the Vendor Lines of Credit section that are not "Starter Vendors".
If Your Company Does Not Show Up...
If your company does not show up, then you'll want to establish your file and get a D-U-N-S number a.s.a.p.
You can go the free route and apply for a D-U-N-S number.
Checking Your Creditsafe Business Report
Your Experian Business Credit Report
The Creditsafe Rating evaluates your business's capacity to make timely payments. It takes into account various factors such as trade payment data, public information, lender compliance, and other performance indicators to forecast the probability of your business defaulting. Defaulting refers to the likelihood of your business either falling 90 days behind on payments within the next year or going bankrupt.
The Creditsafe Rating assigns businesses a score on a scale of 0 to 100, where a score of 70 or higher indicates a lower risk of default, while a score below 60 signifies a high risk of default.
In addition, Creditsafe offers Credit Limit recommendations to lenders or vendors who are considering providing financing to your business. This limit represents the maximum amount of credit that should be outstanding at any given time.
Currently, Creditsafe is primarily utilized by landlords and service companies such as alarm companies, internet providers, and phone providers. Therefore, it is crucial for them to continually enhance their report and score.
If you discover any errors on your CreditSafe business credit report, you can initiate the correction process by
submitting a support ticket.
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