Unlock Your Business Potential: How to Check Your Business Credit Score for Free

While you may be thinking that credit scores are only associated with individuals, you should know businesses also receive that necessary number. Just like personal credit score, business credit score also plays a crucial role in how lenders verify your business eligibility for products related to credit, like small business credit cards and business loans.

So, if you are applying for a credit card as a small business, it’s essential to see what your business credit score is and how you will manage your business credit report.

In this article, you will get answers to all your questions related to your business credit score and credit report so that you know about your company’s credit standing.

Understanding business credit report

A business credit report is the total of your business’s credit history. It is the same as your personal credit report, which is the same as your personal credit use. Lenders use information related to your credit report to review how likely you are to repay the money you borrowed.

Below is the information that you will look for in the business credit report, as per the Small Business Association (SBA),

• Number of employees, sales, ownership, and subsidiaries
• Industry classification
• Payment history and collections
• Business registration and operational information
• Public filings (i.e., liens, judgments, etc.)

Your business credit report usually affects your businesses bottom line in different ways. Things that get affected because of your credit score are your repayment terms, interest rate, insurance premiums, and the credit you are receiving from the suppliers and banks, as per the SBA guidelines.

Calculating business credit score

A business credit score examines various factors like your personal credit score, such as the amount of debt used and payment history. But, the business credit score uses different scoring models.

The Dun & Bradstreet (D&B) PAYDEX Score and Experian Intelliscore Plus are two widely used business credit scoring models, each ranging from 1 to 100, with higher scores indicating stronger creditworthiness. In contrast, consumer FICO Scores operate on a scale from 300 to 850, where scores above 800 are considered exceptional.

Business credit score models have some different factors when calculating the scores, but you can assume a few things to be considered, like your account age, payment history, and debt amount. If you are carrying a balance or missed a credit card payment, it would be a negative factor in your business credit score. On the other hand, if you regularly pay your full business card balance on time, it is likely that your business credit score will improve with time.

How to review business credit score

There are a lot of credit score and credit report resources available for consumers; it gets challenging to look for business versions. There are some free business credit resources in place, but to get the full service, you need to pay.

Monitor your business credit score for free

Regrettably, you will have to pay if you want to check your business credit score from the credit reporting agencies. But, you can get an idea by seeing the trends of certain scores.

Dun & Bradstreet Credit Insights Free provides a general overview of your business credit report and indicates where your business credit score may be trending. Here’s an outline of the information included in the free version:

• Changes for three credit scores and ratings
• Legal events summary
• Basic information about the company and business operations summary

But, while using the free version, you won’t have access to the full Dun & Bradstreet business credit report and business credit score. This means you won’t be able to see your real business credit score, but only the direction they are going in.

Paid business credit score services

To check your business credit score with Dun & Bradstreet (D&B) without a Bank of America Business Advantage 360 account, you must subscribe to at least the Basic plan, which costs $49 per month or $499 per year.

The Basic plan grants access to five D&B credit scores, ratings, and a view of your credit score history. For additional features, such as receiving alerts when your business credit file is accessed, you can upgrade to the CreditBuilder™ Plus or CreditBuilder™ Premium plans.

Conclusion

Understanding and monitoring your business credit score is essential for building a solid financial foundation and maintaining favorable relationships with lenders, suppliers, and insurance providers.

Like personal credit scores, your business credit score influences loan eligibility, interest rate, and payment terms, directly impacting your company’s financial health. While free resources like Dun & Bradstreet Credit Insights offer an overview, paid services give deeper insights and more reliable monitoring tools.

Investing in a paid plan may be worthwhile, allowing you to track and manage your business credit score actively, safeguard your business reputation, and improve access to credit opportunities.