What is a Business Credit Score?
Your credit score determines a lot: your ability to get a loan, rent a place to live, get insurance for yourself, and more. Similarly, your business’s credit score also determines a lot, specifically about the creditworthiness of your company. Having a good business credit score can either help or hurt the chances of securing loans or obtaining financing.
While your personal credit score typically ranges from 300-850, your business credit score ranges from 0-100, with 100 being the best score.
Business credit reports and scores only include the accounts that you have opened under your company name. However, many small business lenders and credit card issuers will often consider your personal credit history as well as your business credit before they come to a decision.
Your business credit score is an essential part of your company’s financial health. It’s important to plan on accessing your score on a regular basis, whether that is quarterly or annually, in order to ensure the continuing health and future of your business.
Did you know we offer business loans, products and services, in addition to consumer accounts? For information on business services, products and other resources from Clearview, visit our website.
What makes up a business credit score?
There are three business credit bureaus: Dun & Bradstreet, Experian, and Equifax. Each of these uses a different set of information in order to produce a credit score for your business. Dun & Bradstreet, for example, only look at your payment history. Experian and Equifax, on the other hand, utilize many other factors, such as how long your business has been operating, how many employees you have, etc.While your personal credit score typically ranges from 300-850, your business credit score ranges from 0-100, with 100 being the best score.
Business credit reports and scores only include the accounts that you have opened under your company name. However, many small business lenders and credit card issuers will often consider your personal credit history as well as your business credit before they come to a decision.
How do I keep track of my business’s score?
The main difference between keeping track of your personal credit score and your business’s credit score is that you have to pay to access your business score any time you check it. Unlike your personal credit score, there is no free annual report available for businesses.Your business credit score is an essential part of your company’s financial health. It’s important to plan on accessing your score on a regular basis, whether that is quarterly or annually, in order to ensure the continuing health and future of your business.
Did you know we offer business loans, products and services, in addition to consumer accounts? For information on business services, products and other resources from Clearview, visit our website.