How to check your business credit report
Your credit rating is a useful tool to help lenders evaluate your financial health. Your score is a reflection of your company’s ability to make payments on time — an important point on any lender’s checklist.
Get these quick answers to common credit report questions:
Where can I obtain my credit report?
There are many options to obtain your credit report including common providers like Equifax, Experian and Dun & Bradstreet. For personal credit reports, you can also look to sites like Credit Karma. Check around and find the right option for you.
Pull a credit report for both your business and yourself, and do this on a regular basis. Sometimes these reports also have incorrect information, and it’s important to be aware of mistakes so you can fix them.
What’s on the credit report?
Your credit score is largely based on public data and information that vendors and other lenders have reported. Each credit bureau has its own rating system, with some common examples below:
- Dun & Bradstreet: PAYDEX Score: 0 – 100 (Good Score is 80+)
- Experian: Credit Ranking Intelliscore: 0 – 100 (Good Score is 76+)
- Equifax: Business Payment Index: 0 – 100 (Good Score is 90+)
You might also discover a multitude of items within your credit report that show signs of identity theft, which has become a modern reality. If someone is using your identity, there are going to be breadcrumbs and trails. Don’t be overly worried, but be aware that it is a possibility.
How often should I pull my credit report?
As for frequency, pull your reports yearly. It doesn’t cost a lot to obtain your own credit report (some may even be free), and the time it takes will be well worth it to make sure the information is accurate.
Will this impact my credit rating?
It’s a common misconception that requesting your own credit report could damage your credit rating. If you’re just obtaining the report and just looking at results, this will not have a negative impact. However, if too many banks or lenders request your report at the same time, that may have a negative impact, since it could signal that you’re shopping less strategically for financing. (See section 3 for more details.)
What’s a D-U-N-S Number and why should I request one?
Of note, it is worthwhile to request a D-U-N-S Number with Dun & Bradstreet. The D-U-N-S Number allows you to proactively add your most current information to Dun & Bradstreet’s records. It is used by lenders to predict if you are a reliable and financially stable company, and is an easier method for them to find your credit information.
Checking your credit rating will help you prepare for future funding and get a head start on the lending process.
For five more expert tips to improve your access to timely business funding, view the helpful eBook resource, “How to Become Lender Friendly.”
