Checking your business credit score is an important step in understanding the financial health of your business. Here’s how to check your business credit score and what it means for your business.
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What is a business credit score?
Your business credit score is a numerical representation of your business’s creditworthiness. Lenders, vendors, and suppliers will use your business credit score to determine whether or not to extend credit to your business.
There are a few different types of business credit scores, but the two most common are thePaydex® scorefrom Dun & Bradstreet and the Business Credit Risk Score from Experian®.
Just like your personal credit score, your business credit score is based on information in your credit report. The information in your report is used to generate a score that lenders can use to assess your risk.
Your business credit score can range from 0 to 100, with 100 being the best possible score. The higher your score, the lower the risk you pose to lenders.
Checking Your Business Credit Score
You can check your business credit score for free throughDun & Bradstreet’s PAYDEXscoring systemorExperian’s Business Credit Risk Score. These scores are updated monthly, so it’s a good idea to check them regularly to make sure there are no surprises.
If you find that your scores are lower than you’d like them to be, there are steps you can take to improve them. Check out our guide onhow to improve your business credit scrorefor more information.
How do I check my business credit score?
There are a few different ways to check your business credit score. You can use a credit reporting service, such as Dun & Bradstreet or Experian, to get a report. You can also get a copy of your business credit report from the business credit reporting agency Equifax.
Another way to check your business credit score is to use a business credit monitoring service, such as CreditSignal or Business Credit Edge. These services will provide you with ongoing updates to your business credit report and alert you of any changes.
You can also check your personal credit score, which will give you an indication of how well your business is doing. To get your personal credit score, you can use a service like Credit Karma or FreeCreditScore.com.
How can I improve my business credit score?
There are a few key things you can do to improve your business credit score.
First, make sure that all the information on your report is accurate. If there are any errors, dispute them with the credit bureau.
Second, focus on paying your bills on time. This is one of the most important factors in determining your business credit score.
Third, keep your balances low. This shows creditors that you’re not overextended and that you can manage your debt responsibly.
Fourth, don’t open too many new lines of credit at once. This can be seen as a sign of financial distress and can lower your business credit score.
Finally, build a good relationship with your creditors by always making payments on time and communicating with them if you have any problems. This will show creditors that you’re a responsible borrower and will help improve your business credit score over time.