Facts about your Experian small business credit score

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Facts about your Experian small business credit score

Published By Janet Gershen-Siegel at October 31, 2017

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Experian is one of the large credit reporting agencies. Because they report on both business and person credit, a lot of this post relates to taking care of your personal credit as well. Let’s look at a sample Experian business credit report.

Report portions

Identifying details

The report divides into segments. The first, as might be assumed, consists of basic identifying data including business name and address, but also any ownership details. This area also specifies important personnel and the kind of company, for how long it’s been operating, number of employees, and the volume of annual sales.

Payment information at a glance

Following is an abridged section with the present days beyond terms (delinquent payments) and forecasted days beyond terms. This portion also provides an overall trend along with data points like the lowest and highest balance for the most recent six months in addition to the present balance. By incorporating the highest amount of credit extended, the report gives an idea of the highest credit utilization rate for your business.

This part also contains the number of payment tradelines (lines of credit) your business holds and number of times any business entity has made an inquiry into your credit history. It also includes any UCC (Uniform Commercial Code) filings; these are liens filed to support loans. The summary also contains a relative percentage showing the percent of business doing worse than yours, and also the number of bankruptcies you have (undoubtedly you want this figure to be zero), and the amount of liens and judgments.

Credit summary

Next is the credit summary This indicates your company’s Experian credit score and also links to information on what goes into the score and tips on efficient ways to improve it.

Payment summary

The next part is the payment summary. The portion shows line graphs for monthly and quarterly payment trends, and it conveniently shows where the numbers originated from. The monthly payment trend is even graphed as against the industry average.

Immediately below this pair of graphs (and their supporting data) are three bar charts showing continuous payment trends (a tradeline reported for over six months), newly reported payment trends (a tradeline reported for the first time in the last six months), and combined payment trends (the account balance for those mixed tradelines).

Trade payment information

The next portion is all about how your small business has done with its payments, broken down into credit card and leasing accounts; tradelines on file for at least six months and with updating activity during the most recent three months; and aged trades (accounts not updated within the last three months). This information is broken down by supplier category, with payment trends at the bottom.

Inquiries

Next up are inquiries into your business’s credit. These are summarized by kind of institution doing the asking (for example, a bank) by the month when they asked.

Collection filings

If your enterprise has any collection filings, the listing is here by day, collection agency name, status, totals disputed and collected, and the closed date, if relevant.

Collections summary

Just beneath the collection filings part, the summary is quite self-explanatory.

Commercial banking, insurance, leasing

This section shows anything that Experian knows about your company and its connections (if any) with these kinds of companies. The data involve what any credit was extended for, how much credit was extended, when the loan started, and the remaining balance if relevant.

Judgment filings

Next the report presents basic legal information like the court where a judgment was filed, the day, and it was for.

Tax lien filings

Tax lien filing information is similar to judgment filings save that there is a filing location (often a county), instead of a court listed.

UCC filings and summary

These filings just show the date; filing number; jurisdiction; name of the secured party; and activity on the filing.Just below is the UCC filings summary, broken down by filing period and amount of certain kinds of filings (which include cautionary).

Score improvement tips

Lastly, Experian presents a convenient listing of ways to boost your personal, specific report

Improving your Experian report

You can obtain your company’s real Experian report here. You can contest any mistakes on your company’s Experian report by complying with the directions here.

Now that you know what enters into it, you can see that many of the more crucial pieces of information Experian explores are payment history, credit utilization, and amount of time in business/amount of time your company has had an Experian record. By keeping your credit utilization reasonable (less than 30% of your total available credit is best), removing your debts as promptly as possible and not going delinquent, and also by avoiding any delayed payments, you should be able to increase your Experian score over time.

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