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How Business Credit Reports Work

CreditStrong for Business

A good business credit report can be a valuable asset. Keep reading to learn more about how business credit reports work, who creates them, and the information included in these important but poorly understood reports. What Is a Business Credit Report?

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The 5 Main Business Credit Bureaus

CreditStrong for Business

In the business credit world, there are five main credit reporting agencies. These credit bureaus gather information about your company and resell it to others that want to predict the risk of loaning money to your company. It’s wise to understand who the business credit bureaus are and how they operate.

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Which Credit Score Do Lenders Use? 

CreditStrong for Business

FICO is overwhelmingly used by most consumer credit lenders. VantageScore vs FICO Most people use the terms credit score and FICO Score the same way, but there’s more than one type of credit score. Both are valid and used by multiple types of lenders to determine your likelihood of repaying debts and credit risk.

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What Is the SBFE? 

CreditStrong for Business

The goal of the organization is to serve the business lending industry by providing accurate and reliable data to help lenders predict small business credit risk. Business credit reports that contain data from the SBFE might make or break your future business credit applications. No SBFE credit reports.

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What is a Good Equifax Business Credit Score?

CreditStrong for Business

Equifax’s three primary business credit scores are their Credit Risk Score, Payment Index Score, and Business Failure Score. A good Credit Risk Score or Payment Index Score generally indicates that your business is likely to make its payments on time. The lower the score, the higher the risk.

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How Long Does Bankruptcy Stay On Your Credit Report?

CreditStrong for Business

The trade-off for having your debt eliminated is a long-lasting derogatory mark on your credit report identifying you as a huge credit risk. Your credit report sees the effects of a bankruptcy filing for ten years for a chapter 7 bankruptcy. How Does A Bankruptcy Impact Your Credit Score?

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How to Fix My Credit to Buy a House

CreditStrong for Business

Prospective homebuyers seeking a mortgage loan may use several strategies for improving low credit scores. Examples include reviewing credit bureau reports for possible credit account errors, avoiding late payments, paying down debt, and getting a credit builder loan.