If you’ve been following us for a while, we know that you know why your personal credit score is a big deal, and where you can go to get your free personal credit report (HINT: www.annualcreditreport.com).
But as a business owner, do you know where you can pull and monitor your business credit rating?
Unfortunately, lots of business owners remain in the dark about their business credit score. But as a major factor in whether your company can secure a small business loan, a business credit card, or other major financial products available, your business credit score is worth monitoring closely.
We are questioned all the time about where business owners can pull their business credit scores, and we have answers.
Why Should You Care About Your Business Credit Scores
Before we discuss where to get your business credit reports and scores, let’s review why it’s important for you to be in the loop.
Like consumer credit, your lending eligibility will weigh heavily on your history. If you’re looking into getting a business loan from a bank or other lenders for your company—or securing business financing down the line—you should care about your credit history and your current business credit score.
Just as your personal credit score measures your reliability with your personal finances, your business credit score measures your business’s trustworthiness with business finances and establishes your company’s reputation as a borrower.
If your business credit score shows that your business has a good payment history and is creditworthy (a high Paydex score or FICO score), business lenders will feel more comfortable approving small business loans to you.
Be aware- your business credit score isn’t the only factor that determines your loan eligibility, but it’s a major part of your business loan application when applying with traditional lenders.
On top of securing a business loan, a strong business credit score can help you get favorable payment terms from any of your business’s suppliers. So, having a strong score might convince suppliers to give you more comfortable terms.
What Will Your Business Credit Score Look Like?
As a consumer, you know that your personal credit score will come in somewhere between 350 and 800. So, if you pull your free business credit report and get a score of 80….You might be shocked.
Before you pull your free business credit report and panic at your low score, know this: Business credit scores are calculated on a different scale. The business credit reporting agencies—Dun & Bradstreet (responsible for the Paydex score), Experian, and Equifax calculate business credit scores on a scale from 0 to 100. So if you pulled your business credit report and landed a score of 80, your business credit scores are actually in great standing.
Now that you know the basics, let’s discuss how to get a free business credit report and scores.
Nav is a credit monitoring service that give both consumers and business owners access to their personal and business credit history.Nav is great place to look for a free business credit report.
- 1. You don’t need a credit card to sign up.
- 2. Nav will give you free access to a summary of your business credit reports from both Experian and Dun & Bradstreet.
- 3. They provide you with summaries of both your Dun & Bradstreet and Experian reports.
You’ll also have the option of upgrading to one of their paid packages to gain access to your personal credit scores, and The FICO® Small Business Scoring Service℠ (SBSS℠) solution score, which is FICO’s business credit score. The SBA uses it to see if you qualify for their low-interest loans.
However, Nav provides free summaries of your business credit report. You’ll have to pay to get more out of your Nav account. But if you aren’t tracking your business credit history at all or have had bad credit in the past, receiving free business credit report summaries is a great place to start.