What goes into an Experian business credit report

How to Start a Business Credit History with Experian Credit Suite-Decoding the Experian Intelliscore Business Credit Score

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What goes into an Experian business credit report

Published By Janet Gershen-Siegel at January 5, 2018

How to Start a Business Credit History with Experian Credit Suite-Decoding the Experian Intelliscore Business Credit Score>

Experian is just one of the big credit reporting agencies. Because they report on both business and personal credit, a lot of this article relates to handling your personal credit also. Let’s consider a sample Experian business credit report.

Report sections

Identifying details

The report divides into segments. The first, as might be presumed, includes basic identifying data like company name and address, but also any ownership details. This part also details key personnel and the kind of business, for how long it’s been operating, number of employees, and the quantity of yearly sales.

Payment information at a glance

Next is an abridged division with the present days beyond terms (delinquent payments) and predicted days beyond terms. This portion also presents an overall trend together with data points like the lowest and highest balance for the most recent six months in addition to the present balance. By including the highest amount of credit extended, the report gives an idea of the highest credit utilization rate for your company.

This part also contains the number of payment tradelines (credit lines) your small 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 displaying the percent of business doing worse than yours, and also the number of bankruptcies you have (needless to say you want this figure to be zero), and the amount of liens and judgments.

Credit summary

Subsequent is the credit summary This indicates your company’s Experian credit score as well as links to details about what enters into the score and tips on ways to improve it.

Payment summary

The next portion is the payment summary. The portion displays 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.

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

Trade payment information

The next portion is about how your business has done with its payments, separated into credit card and leasing accounts; tradelines on file for a minimum of six months and with updating activity during the last three months; and aged trades (accounts not updated in 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 company’s credit. These are summarized by sort of organization doing the asking (including a bank) by the month when they asked.

Collection filings with summary

If your enterprise has any collection filings, the record is here by date, collection agency name, status, amounts challenged and collected, and the closed date, if relevant.Just below the collection filings portion, the summary is fairly self-explanatory.

Commercial banking, insurance, leasing

This portion shows whatever Experian knows about your company and its relationships (if any) with these types of establishments. The data include what any credit was extended for, how much credit was extended, when the loan began, and the remaining balance if appropriate.

Judgment filings

Next the report presents basic legal information including the court where a judgment was filed, the date, and what amount it was for.

Tax lien filings

Tax lien filing details is similar to judgment filings with the exception that there is a filing location (often a county), instead of a court listed.

UCC filings

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

UCC filings summary

Just beneath is the UCC filings summary, broken down by filing period and amount of certain types of filings (which include cautionary).

Score improvement tips

Finally, Experian furnishes a convenient list of techniques to increase your own, specific report

Improving your Experian report

You can acquire your business’s real Experian report, and you can challenge any mistakes on your commercial Experian report by following the directions on their site.

Since you know what goes into it, you can see that some of the more crucial pieces of information Experian examines are payment history, credit utilization, and amount of time in business/amount of time your small business has had an Experian listing. By keeping your credit utilization reasonable (less than 30% of your total available credit is best), clearing your debts as rapidly as feasible and not going delinquent, and also by avoiding any delayed payments, you should be able to increase your Experian business credit score over time.

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