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Are you feeling overwhelmed by the complexities of business credit scores? You’re not alone! In this article, we’ll demystify business credit scores and help you understand the credit score models used by the major credit bureaus. By gaining a deeper understanding of these models, you’ll be better equipped to make informed decisions about your business’s financial health. So, let’s dive in!<\/p>\n
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There are several business credit scoring models used by different credit bureaus. The four primary models are:<\/p>\n
Let’s explore each of these models in more detail.<\/p>\n
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The PAYDEX Score, developed by Dun & Bradstreet, is a numerical score ranging from 0 to 100, with higher scores indicating better creditworthiness. This model primarily focuses on your business’s payment history, specifically how promptly you pay your bills. A score of 80 or above is generally considered good. For more information on obtaining a DUNS number and establishing a business credit profile with Dun & Bradstreet, check out our article on establishing and building business credit<\/a>.<\/p>\n <\/p>\n Experian’s Intelliscore Plus\u2120 is another popular business credit scoring model, with scores ranging from 1 to 100. Like the PAYDEX Score, higher scores indicate lower credit risk. This model considers multiple factors, including payment history, credit utilization, length of credit history, and public records. To learn more about the factors affecting business credit scores, head over to our business credit basics article<\/a>.<\/p>\n <\/p>\n Equifax’s Business Credit Risk Score\u2120 ranges from 101 to 992, with higher scores indicating lower risk. This model takes into account your business’s credit history, financial history, and public records. It’s essential to monitor your Equifax business credit report regularly to ensure accuracy, as outlined in our guide on understanding and improving business credit scores<\/a>.<\/p>\n <\/p>\n FICO\u00ae Small Business Scoring Service\u2120, or FICO SBSS\u2120, is a credit scoring model developed by FICO specifically for small businesses. Scores range from 0 to 300, and higher scores indicate lower risk. FICO SBSS\u2120 is unique in that it considers both personal and business credit data, making it essential for small business owners to maintain good personal credit as well. Learn more about the importance of personal credit in our business credit basics article<\/a>.<\/p>\n <\/p>\n Understanding the different business credit scoring models is crucial for several reasons:<\/p>\n <\/p>\n For additional information on business credit scores and the various credit score models, consider exploring these external resources:<\/p>\n <\/p>\n Demystifying business credit scores and understanding the credit score models is an essential aspect of managing your business’s financial health. By familiarizing yourself with the different models and factors that impact your scores, you can make informed decisions and work towards building a strong credit profile. Be sure to check out the other articles in our business credit series<\/a> for more valuable insights and tips on managing your business credit!<\/p>\n","protected":false},"excerpt":{"rendered":" Are you feeling overwhelmed by the complexities of business credit scores? You’re not alone! In this article, we’ll demystify business credit scores and help you understand the credit score models used by the major credit bureaus. By gaining a deeper understanding of these models, you’ll be better equipped to make informed decisions about your business’s […]<\/p>\n","protected":false},"author":1,"featured_media":239,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[42,45,43,44],"_links":{"self":[{"href":"https:\/\/upwealth.com\/wp-json\/wp\/v2\/posts\/237"}],"collection":[{"href":"https:\/\/upwealth.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/upwealth.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/upwealth.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/upwealth.com\/wp-json\/wp\/v2\/comments?post=237"}],"version-history":[{"count":2,"href":"https:\/\/upwealth.com\/wp-json\/wp\/v2\/posts\/237\/revisions"}],"predecessor-version":[{"id":240,"href":"https:\/\/upwealth.com\/wp-json\/wp\/v2\/posts\/237\/revisions\/240"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/upwealth.com\/wp-json\/wp\/v2\/media\/239"}],"wp:attachment":[{"href":"https:\/\/upwealth.com\/wp-json\/wp\/v2\/media?parent=237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/upwealth.com\/wp-json\/wp\/v2\/categories?post=237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/upwealth.com\/wp-json\/wp\/v2\/tags?post=237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Experian Intelliscore Plus\u2120<\/h3>\n
Equifax Business Credit Risk Score\u2120<\/h3>\n
FICO\u00ae Small Business Scoring Service\u2120<\/h3>\n
Why Understanding the Credit Score Models Matters<\/h2>\n
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External Resources<\/h2>\n
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Wrapping Up<\/h2>\n