Business Credit Reports

It is important to build and maintain business credit report apart from maintaining personal credit reports.

There are several advantages for having a business account as compared to the savings account. In the similar manner, an entrepreneur can have both personal credit report as well as business credit report. If one is the sole proprietor of a venture and wants to take it to unexpected heights business credit reports would assist him in several ways.

Personal credit can be obtained along with the business credit which would aid in financial matters and soothe them to great extent.”

Whenever an individual with an ID numbers undertakes the job, starts earning money or apply for any credit card or credit loan then the profile is maintained by central agencies and this profile is called credit report. It contains the details of the individual and every credit enquiry, application, change of either job or address, or an enquiry about debt consolidation loans if any.

The information is stored with the credit bureaus under state or central government and can be retrieved as and when required when one applies for the credit or mortgage loans. This credit report becomes a statement of person’s ability to pay for any debts undertaken. This report is generally demanded by the lenders when the individual applies for the loan or debt consolidation.

The credit reports are available for the individual accounts as well as business accounts.

When it is maintained for the business, all employees under the same business umbrella are provided with personal credit cards in name of the business and a detailed report of the transactions, loans, credit limit and current debt of all the employees is maintained as a part of the business report. It is at times also referred as trade credit report.

The final report is prepared in the name of the business and the report is sent to the business address on demand. It is prepared keeping in mind the federal tax identification number and the employer identification number, which is obtained for the business.

While issuing credit card to the new employer, the credit statement of the business is taken into consideration rather than individual. If any person has bad personal credit report, and is an employee of a good business firm, the person can avail loan facilities as well as debt consolidation loans on the grounds of the company, as an assurance. The company and the organization becomes the guarantor in this case.

The different credit bureaus which provide the business credit report are ‘Dun and Bradstreet,’ ‘Equifax Business,’ ‘Experience Business,’ ‘Business Credit USA’ to name a few. The information to the bureaus is sent by the banks and other minor agencies, and it may happen that your account and the statement may be unnoticed since years as the information is not provided voluntarily and all banks don’t pay the bureaus to maintain the statement.

Going un-noticed has it’s own pros and cons.. If you have maintained a good bank statement for years and have never required any kinds of loans, while applying for loan you won’t have a support of the bureaus. You need to apply as a fresh candidate and face all the problems which a fresher faces. On the other hand, if you have not been so accurate in maintaining your statement, which has not been fair enough, you are a lucky go merry person, as there won’t be any proof of your wrong doings.

Whatever it may be, one should always maintain a good statement in banks and with credit bureaus, which may always be beneficial for one.

Maintaining a good statement begins with paying bills on time, paying interest and installments for the loans taken, or the installments for the debt consolidation loans. Every thing depends on the credit score, higher the score, the better.