How to check your Equifax business credit report

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How to check your Equifax business credit report

Published By Janet Gershen-Siegel at December 26, 2017

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One of the big credit scoring agencies is Equifax. Let’s take a look at an example of their reports.Your Equifax business credit report is broken down into sections.

Company identifying information

The initial part (immediately below the date) is dedicated to identifying details regarding your company, e. g. the business name, and its address and telephone number, but also information such as if your company is incorporated, and the date you initially went into business. This area will also include the number of employees and your business’s annual sales. This component will also reveal if there are any alerts.

These initial sections function as a synopsis of the rest of the report.

Scores

The next part includes two scores:

  1. Your small business credit risk score for suppliers and
  2. Your business failure risk score.

Public records

Next, the report shows public records. These include bankruptcies, judgments, and liens, and show the amounts (if any) and the date(s) the most recent one(s) was/were filed. This section also shows how these matters were satisfied, e.g. if the lien was settled.

Credit usage

The next element is a pie chart showing your company’s credit usage. It graphically shows (together with identifying labels which show how much each percentage truly is) which percentage of your available credit line you are taking advantage of (this is your credit utilization rate).

Credit report summary

In the summary section, the report presents the number of your small business’s credit accounts, the date these credit accounts became active, any amounts past due, your most severe status within the last 24 months (this is how slowly you have paid off your debts), the single greatest amount of credit extended, the median balance, and the average open balance. All of these factors are split into financial and nonfinancial categories. Your firm’s recent activity is also provided; this includes things like the number of new accounts opened or delinquent accounts, the number of inquiries, and the number of updated accounts.

This area also includes a line graph which stands for a trend line showing your company’s average days beyond terms by date reported (for your nonfinancial accounts only). The report will point out the recent trend, and how many days (if any) your company is behind terms. This section also shows your business’s payment index and contrasts it to your business’s business sector.

Financial account highlights and details for the most recent 36 months

This next segment (it starts with highlights and then goes into detail) adds basic information on financial accounts like commercial credit cards and leases, showing status; open and closed dates; original and current credit limits; balance; overdue amount (if any); and your company’s 24-month history.

The details subsection expands on the highlights section by incorporating facts such as the payment amount and frequency, and whether a debt is secured (secured vs. unsecured credit matters a good deal in the event of a bankruptcy, as secured creditors get a favorable place in line for limited assets).

Financial account payment details

This next section shows balances, past due amounts, aging categories, and dates of first delinquency (if any) for the most recent 12 month period.

Non-financial payment credit experiences and status

The following area shows trade accounts and the like, and also includes balances, aging categories, and a 24-month history.

Public records

Next up are public records. This section shows more comprehensive information on judgments, liens, and bankruptcies.

Decisioning details

The next component shows the details of what entered into your business failure risk summary report.

Additional information

The concluding piece of the report shows any DBA information and any related files, plus any other more or less miscellaneous details (including comments) which could be in a report

Improving your Equifax report

Now that you know what goes into it, you can see that some of the more vital pieces of data Equifax studies are public records, credit usage, and how you handle your financial and nonfinancial accounts. By removing your debts as quickly as possible and not going delinquent, keeping your credit utilization within reason (less than 30% of your total available credit is best), and avoiding overdue payments, you should be able to build up your Equifax commercial credit score.

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