Television makes a significant impact on what is in people’s minds whenever they think of their credit scores nowadays. Even without TV advertisements, most if not all people already know how important it is to watch out and take care of your credit score. After all, a credit score is your key to some of your biggest lifetime’s milestones like purchasing a home, paying your college, and many more.
Credit Karma has always been the Americans’ source of knowing credit score standings. Though opinions vary whether it is credible or not, it certainly did a good job of getting into people’s minds.
Other than a personal credit score, there is also what we call a business credit score – a credit score for business owners.
Business Credit Scores
A Business credit score is very similar to a personal credit score – both lets lenders know how well the credit owner is handling debt. As a business owner, you will probably think of a funding source to grow your business in the long run, which makes this very important.
Experian and Equifax are companies that report not only personal credit scores but business credit scores as well. Personal credit score ranges from 300 – 850, while business credit scores generally range from 0-100. Several scoring factors may affect a business credit score. These factors include, but are not limited to: your credit utilization ratio, the number of years your business has been operating, payment history, length of credit history, credit inquiries in the past nine months, outstanding debts, and public records or derogatory information such as collections, liens, judgments, and bankruptcies.
Why My Business Credit Score Matters
As a business owner, it is crucial to keep your business credit score as good as possible. Many essential tools can be easily accessed through a good business score. Having a good credit score can help you get financing to grow your business, for mortgages, loans on properties, buying new equipment, and more. It is also recommended that before working with new vendors or business partners, a business credit score check is performed.
Whenever you want to seek financing, it’s good practice to check your credit score to know where you stand. Checking your “Credit Karma for Business” is essential, and Credit Karma is a personal credit monitoring service.
Does Credit Karma for businesses exist?
Yes, it exists. You can check your business credit data for FREE on Nav. Nav provides a summary of credit reports from companies such as Dun & Bradstreet and Experian. Nav can also get you matched with credit card and loan offers tailored to your business. Nav, in general, can help businesses in improving financial health and access capital.