Dun & Bradstreet have been providing the information you need concerning the credit history and financial health of small business owners for more than 35 years. As an expert in this field, they are best-equipped to help you understand the significance of your credit rating. For those who are just starting a business or have had no business experience, Dun & Bradstreet can provide an easy-to-understand framework that will enable you to better understand your own credit situation. In addition, many of the concepts they explain are easily adaptable to your own business needs.
The first thing you should do before contacting Dun & Bradstreet is pull a copy of your credit report from the three credit bureaus. They are Equifax, Experian, and TransUnion. Each of these companies provides their own versions of your credit score. In general, if you have not opened any accounts in the last six months, you should request a report from each bureau separately. This will give you a clear picture of your current credit situation.
Once you have obtained all three reports, take some time to analyze them. The goal is to compare what is on each credit report and to determine which items may be negatively affecting your business' credit score. The reports should show the number of credit card accounts that you have, the balances, and the current balance due. You should also be able to identify which of your accounts is the primary lender for your business.
Your business credit score will be affected by the number of outstanding loans and whether those loans are being repaid in full or only half. Many consumers make the mistake of thinking that a high business credit score is automatic. Unfortunately, it is not. It is important that you monitor your score closely to avoid making the same mistakes. By continuously monitoring your business credit score, you can identify problems and quickly correct them.
To learn more about your credit score and to keep it up to date, subscribe to a credit-reporting agency's online services. These services are easy to use and will help you manage and report your business finances more effectively. Once you enroll, be sure to follow their instructions carefully. They will provide you with a password, ID, and other security information. They will also provide you with copies of your reports at certain intervals, such as once per year, semi-annually, quarterly, and annually.
Another way to improve your business credit score is to close old accounts that are not being used, and to cancel new accounts. Inaccurate account opening and activity will negatively impact your credit. You should close any accounts that do not belong to you. Once these accounts have been closed, you should note the date and type of the transaction, the account balance, and the name of the business that is associated with the account. This information will be needed when you apply for credit at a lender in the future.
Finally, open new accounts that are paid off. Any time you are adding to your business credit score by opening new accounts, your credit report will note this transaction. Keeping your old accounts open and making timely payments on them will help your business credit . . . . . . score. If you have a lot of open credit accounts, you may need to obtain your Dun & Bradstreet business credit score reports several times per year to monitor your progress with improving your credit.
As you can see, there are many ways to help maintain the best business credit score possible. The easiest way is to pay your bills on time and to maintain your existing credit lines. If you want to go a different route and increase your business credit score, you should consider obtaining a custom credit report from Dun & Bradstreet. It will cost you between seven hundred and ten hundred dollars, depending on which credit report you choose.