How To Check Company Credit Score and Credit Report for Free
Author : Eddie Dave | Published On : 30 Apr 2021
When you think of credit scores, what probably comes to mind is the creditworthiness of an individual, but companies also receive a credit score. And just like in the cases of personal credit scores, lenders use a business’ score to judge its qualification for different lines of credit. Your credit rating also greatly determines how other businesses, or partners, gauge your business.
So, whether you are applying for a company loan or a credit card, it helps to know what factors into your score and how to check company credit score for free.
A company credit score is a measure of a company’s creditworthiness expressed through a numerical tier system. The score is used to aggregate the overall credit history of a business.
To come up with a free company credit report, credit bureaus use information such as:
- Number of employees
- Sales volumes
- Registration and operational data
- Business type and government activity (if any)
- Legal data
- Credit payment history
- Credit utilization
For starters, the mainstream business credit score models are from 1 to 100 points and 300 to 850 points. With both systems, a good credit score is one that is as close to the maximum score as possible.
As such, a score of 600 on the second model is considered “fair” while 800 is “excellent”. Complex algorithms go into the calculations but some factors weigh more than others. For example, you can expect loan defaults to lower a company’s score more than credit card balances.
You can get a free business credit report through both online and on-site inquiries. The process involves filling out a form with specific company information that makes it possible to determine its credit standing.
At the same time, unlike traditional models that take days or weeks to submit your score, nowadays, there are business credit score services that offer real-time data. This beats delayed reports that may be unreliable by the time the company applies for a new line of credit.
With this in mind, you should check your credit score with a tool that takes into account current cash flow. You will also need a detailed assessment of your business, beyond a credit score. Such extra benefits to look out for include:
- The specific factors that count towards your company credit score and which ones to improve on
- Real-time alerts when your score changes
- Information that helps to predict credit limit, and chances of credit approval or disapproval
It is possible to get a free company credit report and credit score. The trick lies in identifying a platform that employs bank-level encryption. This is to ensure the security of your business information. Lastly, it helps to sign up with a model that offers more credit-related features, rather than the static credit indicators common with old-school credit bureaus.