How to Check Your Equifax Business Credit Report
Learn how to check your Equifax business credit report. One of the big credit scoring agencies is Equifax. Let’s take a look at an example. Your Equifax business credit report has a break down into sections.
Check Your Equifax Business Credit Report: Company identifying information
The initial part (immediately below the date) is meant to identify details regarding your company. This includes information such as the business name, and its address and telephone number.
But it also has information such as if your business is a corporation. And it also has the date you initially went into business. This area will also include the number of employees and your business’s annual sales. The component will also reveal if there are any alerts.
These initial sections function as a synopsis of the rest of the report.
Check Your Equifax Business Credit Report: Scores
The next part includes two scores:
- 1. Your small business credit risk score for suppliers and
- 2. Your business failure risk score.
More About the Equifax Risk Score
Now let’s look at the Equifax Risk Score in depth.
Speed Credit Decisions with Predictive Consumer Perspective
Equifax Risk Score ® is an improved risk model designed to aid predicting the chance of a consumer becoming 90 or more days late within 24 months.
The scoring solution provides rank-ordered risk perspective. This is to support informed credit decisions, help reduce risk exposure and increase portfolio profitability.
Strengthen your business across all facets of the account life cycle. Do so with comprehensive scoring tools backed by the reliability and depth of Equifax consumer credit information.
Deeper Credit Evaluation Drives Smarter Credit Decisions
They segment 5 scorecards with a combination of statistical analysis and business requirements. This is so as to create the most comprehensive consumer perspective. Equifax Risk Score can help pinpoint new marketing and cross-sell opportunities. Or it can identify areas of risk exposure when combined with the Equifax Bankruptcy Navigator Index.
With Equifax Risk Score, you get predictive perspective that helps speed credit decisions. And this is also while adding a layer of protection against risk at every point in the account lifecycle.
You can increase targeting precision, and understand new expansion opportunities. And you can streamline collections efforts and mitigate risk exposure. It’s all possible with the powerful scoring insight delivered by Equifax Risk Score
Key Benefits for Creditors
The key benefits are as follows:
Strengthen Portfolio Quality
When companies look to develop and build a portfolio of investments, the report is intended to help show which are the better investments or at least which are the worst investments to be avoided.
When better investment opportunities are identified by the report, companies presumably will be more interested in making investments.
Manage Risk Exposure
For companies looking to extend business credit, the Equifax Risk Score is designed to better predict a late payment
Drive More Effective Collections
And for companies on the credit-giving side of the equation, the Equifax Credit Risk Score is meant as a means of understanding which companies are the least uncertain credit risks. When a company only works with less risky debtors, then credit providers should expect collections to be easier.
Check Your Equifax Business Credit Report: Public records
Next, the report shows public records. These include bankruptcies, judgments, and liens. And it shows the amounts (if any) and the date(s) the most recent filings. This section also shows how these matters were satisfied. For example, this is for if there was a settlement of a lien.
Check Your Equifax Business Credit Report: 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.
Check Your Equifax Business Credit Report: 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 get a separation into financial and non-financial categories.
Your firm’s recent activity is also provided. This includes things like the number of new accounts opened or delinquent accounts. And it also has 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 non-financial 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.
Check Your Equifax Business Credit Report: 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 it also includes whether a debt is secured. Secured vs. unsecured debt matters a good deal in the event of a bankruptcy. This is because secured creditors get a favorable place in line for limited assets.
Check Your Equifax Business Credit Report: 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.
Check Your Equifax Business Credit Report: 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.
Check Your Equifax Business Credit Report: Public Records
Next up are public records. This section shows more comprehensive information on judgments, liens, and bankruptcies.
Check Your Equifax Business Credit Report: Decisioning Details
The next piece shows the details of what entered into your business failure risk summary report.
Check Your Equifax Business Credit Report: Additional Information
The concluding piece of the report shows any DBA information and any related files. Plus it has any other more or less miscellaneous details which could be in a report. These can be comments, for example.
Check Your Equifax Business Credit Report: Improving Your Equifax Report
A few of the more vital pieces of data Equifax considers are credit usage and public records. And how your small business addresses its financial and non-financial accounts.
You can help your own case by getting rid of debts as quickly as possible and not going delinquent. And you can also try to keep your company’s credit utilization reasonable. So, use below 30% of your total available credit for optimal results. And be sure to steer clear of late payments. If you do all of these things, then you should have a good Equifax score.
Check Your Equifax Business Credit Report: Learn How to Dispute Errors on Your Credit Reports
Just like any other calculation, sometimes your credit score is just plain incorrect. And that could be a more frequent occurrence in the face of the recent Equifax data breach. And also due to the subsequent problems with Equifax.
Hence you need to stay on top of your credit score, and check what’s going into it. If any charges have an incorrect listing (often as unpaid or as delinquent), do not despair! It is then you can dispute these issues with the applicable credit reporting agency.
Disputes have to be in writing and they should be specific as to which charge you are calling into question. You will need documentation as well. So enclose a copy of any sort of proof of payment, such as a receipt or a cancelled check. Retain originals and only send copies.
And if you need to dispute your personal Equifax report, go here.
Monitoring your credit is always a good idea. But with the 2017 Equifax data breach and how the company handled it, it’s more important than ever. You can monitor your credit with D&B, Equifax, and Experian with us for 90% less. Our credit building programs also offer significant savings on credit monitoring.
Check Your Equifax Business Credit Report: Takeaways
Fixing and improving your Equifax report will often help improve your D&B and Experian reports, too. Let’s get started today.