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Published By Credit Suite at February 9th, 2016
Experian’s most recent score system released in 2008 is known as Intelliscore Plus. This is a number which they boast of as the next level in credit scoring. It’s an important part of Experian Corporate Credit.
Intelliscore Plus takes into account hundreds of variables to offer a business score between 0 and 100. This means 100 is the highest score. And 0 is the lowest.
Intelliscore actually predicts a business’s risk of going seriously delinquent, or over 91 days late. Or it predicts the chance of having a major financial issue such as bankruptcy. So this is within the next 12 months
The 0 to 100 scale is a percentile score. So, it reflects the percentage of businesses that score higher or lower than the specific business being under consideration.
So here’s an example. If the business has a score of 20, this means that company scores better than 19% of other businesses. That also means that 80% of other businesses score higher than that business.
More than 7.2 million businesses in Experian’s database have been assigned a score. In addition, there are over 800 aggregates or factors which affect each score.
So, any other factors tie into percentages of the overall Intelliscore.
The Historical Behavior or payment history accounts for 5 to 10% of the total score. But current payment status, trade balances, and percent of accounts delinquent account for 50 to 60% of the score makeup.
The business’ credit utilization affects 10 to 15% of the total score. So, this has to do with the amount of credit that is going to the business. So, this is in relation to the balances they currently have on those accounts.
The company profile, age of business, industry risk, and size of business assessed by number of employees accounts for 5 to 10% of the total score. So, 10 to 15% of the total score comes from any derogatory items.And those are collections, liens, judgments, and bankruptcies that business has.
Experian’s Intelliscore is one of the most popular credit scores in the business world today.
Knowing how this score works empowers you with the ability to make sure you have the highest score available. In turn, this is so you can get the greatest amount of business credit for your business.