Decoding Your Experian Company Credit Report

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Decoding Your Experian Company Credit Report

Published By Janet Gershen-Siegel at December 6, 2017

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Experian is among the larger credit reporting agencies.Because they report on both business and private credit, a greatdeal of this article applies to taking care of your personal credit too. Let’s look into a sample Experian business credit report.

Report sections

Identifying information

The report breaks down into segments. The first, as might be predicted, features basic identifyingdata such ascompany name and address, but additionally any ownershipinformation. This sector also specifies majorpersonnel and the type of business, how much timeit has been operating, amount of employees, and the amount of yearly sales.

Payment information at a glance

Next is an abbreviated segment with the currentdays beyond terms (delinquent payments) and predicted days beyond terms.This section also offers anoverall trend together with data points such as the lowest and highest balance for the past six months plus the current balance. By providing the highest amount ofcredit extended, the report provides a concept of the highestcredit utilization rate for your company.

This part of your Experian Business Credit report also consists of the number of payment tradelines (lines of credit) your small business holds and number of times any businessentity has made an inquiry into your credit history. It also provides any UCC (Uniform Commercial Code) filings; these are liens filed tosupport loans. The summary also provides a relative percent displaying the percent of companies doing worse than yours, and also the number of bankruptcies you have (naturally you want this number to be zero), and the number of liens and judgments.

Credit summary

Next is the credit summary This shows your company’s Experiancredit score plus links to facts about what goes into the score and ideason how to improve it.

Payment summary

The next aspect is the payment summary. The portion displays line graphs formonthly and quarterly payment trends, and it conveniently shows where the numbers arose from. Themonthly payment trend is even graphed as opposed to the industry average.

Just beneath this set of graphs (and their supporting data) are three bar charts showing continuous payment trends (a tradelinereported for over six months ), recently reported payment trends (a tradelinereported for the first time in the last six months), and combined payment trends (theaccount balance for those combined tradelines).

Trade payment information

The next portion is everything about howyour business has handled its payments, brokendown into credit card and leasing accounts; tradelines on file for atleast six months and with updating activity during the most recent three months; and aged trades (accounts not updatedwithin the last three months). This data is broken down bysupplier category, with payment trends at the bottom.

Inquiries

Next are inquiries into your business’s credit. These are recapped by kind of institution doing the inquiring (for instance, a financialinstitution) by the month when they asked.

Collection filings

If your small business has any collection filings, the listing is here by date, debt collector name,status, amounts disputed and collected, and the closed date, if appropriate.

Collections summary

Just underneath the collection filings category, the summary is fairly clear.

Commercial banking, insurance, leasing

This portion shows whatever Experian knowsabout your company and its connections (if any) with these kinds of organizations. The facts include what any credit was provided for,how much credit was extended, when the loan started, and the remainingbalance if appropriate.

Judgment filings

Next the report displays general legalinformation such as the courtwhere a judgment was filed, the date, and how much it was for.

Tax lien filings

Tax lien filing information is similar to judgment filings with theexception that there is a filing location (often a county), rather than a court listed.

UCC filings

These filings only show the date; filing number; jurisdiction; name of thesecured party; and activity on the filing.

UCC filings summary

Just underneath is the UCC filings summary, separatedby filing period and amount of certain forms offilings ( for example, cautionary).

Score improvement tips

Then finally, Experian supplies a useful listing of methods to improve your own, particular report

Improving your Experian report

You can obtain your company’s real Experian report and can contest any problems on yourcompany’s Experian report by complying with thedirections on their website.

Since you know what goes into it, you can see that a few of the more important portions of information Experian considers are payment history,credit utilization, and amount of time in business/amount of time your company has had an Experian listing. By maintaining your credit utilization within reason ( below 30% of your total available credit is best), satisfying your financial obligations as quickly as possible and not going delinquent, and also by staying clear of any late payments, you should have the opportunity to improve your Experian score over time.

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