Consumer credit scores can be difficult to understand but if you’re a business owner or looking to become a business owner there’s another layer of information to digest. Just like you are assigned a credit score based on your personal creditworthiness businesses also have a credit score Indicates their overall credit profile.
A business credit score serves the same purpose as a personal credit score. If you apply for a business credit card or small business loan the company you apply for credit will use your business credit score to determine your business and your creditworthiness Interest rates and loan terms.
As with personal credit scores a higher business credit score is always better when it comes to getting the best rates and terms. However while personal credit scores are usually between 300 and 850 business credit scores are usually between 1 and 100.
How to check your business credit score
Several third-party companies give you online access to business credit reports. Each provider lets you view a version of your business credit score and some offer multiple packages that give you access to more credit features and information.
If you want to build your business credit score and want to know where to start you can consider the following paid options:
Dun & Bradstreet
Dun & Bradstreet Offers a variety of services to help you monitor and manage your business credit score. While you can pay $39 a month for their top-tier D&B CreditMonitor plan they also offer a CreditSignal Plus plan for $15 a month and a free basic CreditSignal plan. Each of these plans lets you view and monitor Over time your Dun & Bradstreet business credit score and top plans include additional perks such as dark web monitoring industry benchmarks and notifications about disruptive business events.
With Dun & Bradstreet its online platform it’s easy to sign up for an account and get started. Overall this company is best for anyone looking to review their business credit score and monitor changes in their business credit profile over time.
Experian
Experian is another provider that lets you view your business credit score or monitor your business credit profile and charge you a fee. For a one-time fee of $39.95 you can check your business credit score and get an overview of your business. This program called the CreditScore report is a good option if you Just want to see your business credit score but not necessarily monitor its changes over time.
You can also pay $49.95 per month for a more comprehensive business credit score monitoring plan that includes credit inquiry information and detailed trade line data. An annual plan with unlimited business credit scores access to credit alerts continuous tracking is also available for purchase $189 per year.
Equifax
Equifax Allows you to order a business credit report on their website although you’ll need to make a customer service inquiry for pricing. These reports contain comprehensive information including company profiles credit summary details on public records Equifax business risks Scoring alternate business names etc.
The business report from Equifax also includes a unique business failure score which attempts to predict how likely a business is to fail due to “formal or informal bankruptcy” over the next 12 months.
Are there any free options for checking business credit scores?
There are some free business credit scoring services but keep in mind that free reports tend to be lighter in content. They can still provide a good starting point.
Free options for checking your business credit score include:
- Dun & Bradstreet Credit Signal : As mentioned earlier this free service from Dun & Bradstreet lets you access your business credit score and be notified when someone accesses your business credit profile. You can also sign up for free email alerts to let you know when your credit score changes. Note that most of the benefits of this free plan only last 14 days at which point they recommend upgrading to one of their paid options.
- Nav : Nav also offers a free option that gives you access to your Dun & Bradstreet Experian and Equifax business credit reports and scores. The service includes a summary of your business credit report credit building tools and even your personal credit score from Experian.
- Tillful : Tillful is a mobile app that lets you monitor your business credit score for free while accessing all of your business accounts in one place. The app itself is also free to use and you can use it to monitor your credit spending and overall finances in one place.
What information do you need to check your score?
To access your business credit score through the Nav or D&B CreditSignal programs you will need to provide information such as your business name zip code and email address. You will also need to verify your identity by providing your home address date of birth phone number and your Social Security number.
Additionally you may also need to answer some security questions based on your loan history work history or previous address.
Which option should you choose?
If you just want an overview of your business credit profile one of the free options should work. Also keep in mind that the information you get from a free business credit report may not be as comprehensive as what you find on a paid business credit monitoring program.
If you want to monitor your business credit profile on an ongoing basis a paid monthly plan from a company like Experian or Dun & Bradstreet might make more sense.
Whatever you do be sure to take steps to do something when dealing with your business credit. Your business credit score doesn’t seem to matter at the moment but if you want to apply for a business credit card then you need a solid business profile to get a business loan Or work with a supplier that offers credit.
Your best bet is to know your business credit score and take steps to monitor it early before you need it.