Business Credit Reports: Key For Lending Institutions |
|
A business credit report is an important document that ensures credit viability and is crucial for security. For business users, the report is an important indicator of the credit status of a prospective customer and helps the business avoid unnecessary risk. By perusing the report, a company can separate the wheat from the chaff, so to speak. For example, if a particular business credit report shows a potential customer in an unfavorable light because of delinquencies, the application can be rejected. Besides outlining risk potential, a business credit report is essential for procuring company financing. A business credit report contains information that is often taken into account when considering credit applications, such as loan amount or credit limit, account balances, and monthly payments and patterns. The information is usually obtained from companies that you do business with. Apart from the business credit report, there are also personal credit reports that banks may request when you apply for a loan. The information in personal credit reports includes your phone number, social security number, current and previous addresses, date of birth, and current and previous employers. Unlike the business credit report, the personal credit report also bears your spouse's name. All of the information on a personal credit report comes from credit applications and thus its accuracy depends on the consistency and clarity with which you fill out forms. Business credit reports also contain information on federal district bankruptcy records and/or state county court records of tax liens and monetary judgments. The information is culled directly from public records. Also displayed are the names of individuals or companies who have sought copies of your credit report. Sometimes a consumer seeks to restore bad credit by statements of dispute. In such cases, the disputes are also displayed on the business credit report. Provided that the account has been investigated through an official dispute between consumer and creditor, the statements will be added to the credit report. Most reports include dispute statements from both parties. There are many important reasons to get hold of your business credit report. For example, it helps you stay on top of your business credit rating by warding off potential errors that can mar your credentials. Studies show that credit files are prone to errors and mistakes that can injure your approval prospects for loans, insurance or even jobs. Errors in credit reports are often caused by administrative errors and computer glitches such as mixing up names. Another benefit is detection of identity theft, which is when an imposter fraudulently penetrates and assumes your account. These impostors can make a serious dent on your credit by running up large balances in goods and cash advances. This can be avoided with the use of business credit reports. As soon as a fraud is perpetrated, your business credit report will show it and you can salvage your account in time. Free business credit reports can be requested from the three major credit bureaus. |
