Are you concerned that your business credit file may have mistakes in it? You should not be. Business credit files and reports are very separate from personal accounts and reports. But when you apply for business loans, most lenders will also check your personal credit along with your business credit. If there are mistakes in your business credit file, these mistakes could potentially cost you a lot of money. So here are some tips on how to get rid of errors in your business credit file so you should not have to worry about these mistakes when you need business loans.
First of all, check your business credit file and your Equifax credit file as often as possible. You may want to request for the three reports from all three agencies annually because the scores change every year due to new data entries. Also, there may be times when the scores show inconsistencies with the other two. Check for discrepancies by contacting the credit bureaus. It is important to make sure that there are no errors in your Equifax business credit file and that your Equifax score is accurate because these two credit bureaus share information.
Next, it is important to check for errors in the personal section of your Equifax business credit file and in your Equifax personal score. This is because many fraudulent people have used the identity of someone else in order to open fake accounts in your name. It is important to note that this does not apply to people who only have minor accounts. This means that you can have your social security number stolen, but you should not have any of your business credit bureaus' personal information such as your phone numbers and addresses stolen. Check for any discrepancies immediately. Equifax can contact law enforcement if necessary.
It is also important to check the Experian business credit file and your Equifax business phone number separately. This is because Experian reports financial activity on your behalf and only discloses what the reporting agencies find is accurate. If you have a loan from a lender, such as a mortgage company, the lender will require that you sign a release form indicating that you are authorizing the lender to use your business phone number in its collection efforts. This practice is against the Fair Debt Collection Practices Act (FDCPA).
As for the Equifax business credit section, the FTC states that you are entitled to one free report each year from Equifax. You should request three reports from the credit bureaus: one from Experian and two from the other two. Make sure that the dates of dates and reporting reports match up perfectly. If they don't match up or you find inaccuracies in one of the reports, tell the reporting agency about it right away. It is important to make sure that these inaccuracies are corrected because this can adversely affect your ability to qualify for a loan or credit card.
If you have a separate business checking account at another bank, be sure that the bank discloses this to the lenders you use to purchase insurance from. If it doesn't, then it is deceptive under the law to ask the lender to apply business . . . . . . credit to your accounts. This is also a way for creditors to establish business credit for themselves which can give lenders greater control over your life. To protect yourself, make sure your financial records are accurate and show separate accounts for your family and/or lifestyle. Remember, what's on your credit report has far more impact on your ability to get a loan or a credit card than what's on your credit score.