Maintaining a good personal credit profile can help you get favorable rates on personal loans, but did you know that your business credit report is just as important? Here’s why: 1) Lenders check your report to assess your credit risk before extending credit to you; 2) Clients and suppliers may review your business credit to check on payment practices and determine if they will do business with you; and 3) You can monitor your credit report for errors and crack down on fraudulent activity on your accounts.|
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If you haven’t checked your reports lately, now is the perfect time to start. This quick guide helps you understand what to look for in your personal and business credit reports.
What is a credit report? Your credit report is a snapshot of your financial history, including details of accounts and loans in your name. The factors that go into your credit rating include payment history, amounts owed, length of credit history and types of credit used.
How can I check my personal credit report? If you conduct business transactions with your personal accounts, your activity will show up on your personal credit report, which is tracked by the three major credit bureaus (Experian , Equifax and TransUnion ). Simply go to annualcreditreport.com to review and print your report securely online.
What should I look for? Reviewing your credit report is important to ensure accuracy and correct any errors. In your personal report you’ll find information about you (your name, birth date and Social Security number), summary of your account status and requests for credit history from the past two years.
What if I find errors in my report? If you discover any errors, contact the credit agency and ask for a correction. For more information on your rights and how to dispute a credit report error, visit the Federal Trade Commission .
How is a business credit report different than a personal? Like personal credit scores, business credit scores provide a quick view of risk potential based on where the score falls on the scale — the higher the score, the lower the risk. However, business credit scores use a scale that ranges from 0 to 100, while a personal credit score is on a scale of 300 to 850.
What is in a business credit report? Business profiles often include information on: History of payment, delinquencies, charge-offs. Legal actions involving your company. Business registrations and licensing. Corporate financial reports. Government contracts or grants.
How can I check my business credit report? Dun & Bradstreet is the primary business credit reporting agency that collects information from business owners and vendors to issue scores based on payment experiences and financial data. Equifax and Experian have a range of tools and reports for businesses, including ordering your credit report for a fee. Other major business credit reporting companies include Kroll Factual Data and Credit.net .