Tag: credit

5 Business Credit Cards with Benefits That Will Surprise You

Get Business Credit Cards with Benefits – Check Out Some Unique Perks

There are business credit cards with benefits that go way beyond cash back or a low APR. Come and check out some truly unique perks.

Business Credit Cards with Benefits That Are Unique

Some business credit cards have unique benefits not fitting under any other categories, like low APR or cash back.

Some of these cards enroll you in some sort of unique benefits program. Still others may offer certain purchase discounts. And some of these aren’t quite available yet. Here’s our top 5 and a few honorable mentions.

Keep in Mind

Terms and rates are subject to change. In particular, many annual percentage rates tie to the Prime Rate. Banks and other credit providers sometimes add or drop features, or even credit cards. As always, the best source for all credit card information will be right on the provider’s website.

Business Credit Cards with Benefits Where You Can Buy Crypto: Honorable Mention – Gemini Credit Card from MasterCard (personal)

The Gemini credit card came about after Gemini’s recent acquisition of Blockrize. Blockrize already had a cryptocurrency credit card in the works. Buy crypto with this soon to arrive credit card, slated to be available in the summer of 2021.

With Gemini Earn, you can earn interest on your cryptocurrency. This compounds daily, up to 7.4% annual percentage yield. Until the card is issued, it will be hard to assess who it would be best for. Although backing from MasterCard is good news.

Unique Benefit Credit Cards: Honorable Mention – Mercury Bank MasterCard (personal)

Mercury is an angel-funded bank serving startups. Pay a $0 or $79 annual fee. Transfer APR is $5 or 4% of amount of each transfer, whichever is more. There are cashback rewards for the Mercury Bank MasterCard, but they are not specified on the bank’s website. Pay 26.99-29.99% APR. This is a good card for startups but the interest rates are high, so be sure you can pay on time before you start charging.

Business Credit Cards with Benefits Where You Can Get Amazon Discounts: #5 – Amazon Prime Store Card

If your business shops at Amazon often, then this could be the card for you. You get a $60 Amazon gift card upon the approval of your application. Get 5% cashback on Amazon purchases. And you pay no annual fee. However, limits for the Amazon Prime store card seem to be low. There are reviews of this card on the Amazon website and you should check them before applying.

Business Credit Cards with Benefits for Veterans and Active Armed Forces: #4 – Navy Federal GO BIZ™ Rewards Card

This Navy Federal business credit card is available as either a MasterCard or Visa. Benefits differ depending on which card type you choose. Get 1 point for each dollar spent but rewards depend on if you have a Visa or MasterCard. With a Navy Federal Visa, you get access to Visa SavingsEdge. With a MasterCard, you get a collision damage waiver.

Pay no foreign transaction fees. There is no earnings cap and there is no annual fee. Pay an APR as low as Prime+ 5.90%.

Get GO BIZ™ Rewards. You can redeem points for gift certificates, cash deposited into your savings account, and more. Note: this card comes from a credit union, and you must be a member first. You can only be a member of the Navy Federal credit union if you’re attached to the military, the Department of Defense, or the National Guard and their families. If you can qualify for this card, the interest rate is stellar and it goes beyond an introductory period.

Unique Benefit Credit Cards: #3 – Brex Credit Cards for Startups

You will not need to provide a personal guarantee. They will underwrite based on your EIN. Only companies organized and registered in the US may apply for a Brex account. These are like C-corps, S-corps, LLCs, or LLPs. Pay no annual fee for the Brex credit card for startups.

Get unlimited points. You can get 7x points on rideshare. Get 4x points on Brex travel. You get triple points on restaurants. Get double points on recurring software costs. And get 1x points on everything else.

Earn points on everything you buy. Redeem them for Bitcoin or Ethereum through Brex’s partner TravelBank. But there are some industries they will not work with, as well as others where they want more paperwork. They will not accept the cannabis industry, and crypto is a restricted industry.

Credit Cards with Benefits Where You Can Build Personal (and Some Business) Credit: #2 – Sofi Credit Card (personal)

While this is a personal card, the perks are so unique we had to include it. You can earn 2% cash back on all eligible purchases. You can redeem your cash back straight into crypto with a SoFi active invest account. Pay no annual fee and no foreign transaction fees.

Make 12 monthly on-time payments of at least the minimum due, and SoFi knocks 1% off your APR. Otherwise, standard variable APR for purchases is 12.99-24.99%, based on creditworthiness. The SoFi credit card‘s APR ties to the Prime Rate. Balance transfer APR is 12.99-24.99%, based on creditworthiness.

Perks programs include the Sofi credit card rewards program. Rewards include a Lyft credit for a minimum number of rides taken in a month, once per month. There’s also the Sofi member rewards program. That’s where you can apply points toward loans, including student loans, and Mastercard World Elite.

Credit Building

Since this card lets you plow points into paying off loans, it can improve your personal credit. And paying on time will improve your personal credit even more. Experian’s business credit score calculations include personal credit scores. So, indirectly, this card could help you build business credit.

Business Credit Cards with Benefits to Help You Manage an SBA Express Loan: #1 – Zions Bank SBA Express Business Visa Debit Card

The Zions Bank SBA Express Business Visa debit card is #1 because it floored us. And then we wondered – why doesn’t every SBA Express lender do things this way? Pay no membership/account fees. Use this card to manage SBA Express loan money from Zions Bank that’s already approved.

Get travel accident insurance and other credit card perks, which you would not normally get from an SBA Express loan. This card is only available to SBA Express borrowers. If you’re an SBA Express borrower (or want to become one), we could not find a downside to getting this card.

Small Business Credit Cards with Benefits: Takeaways

Business credit cards with benefits have positives beyond lower APRs and travel points. Buy bitcoin, or access Visa SavingsEdge, or the MasterCard Easy Savings program. Or pay low interest rates by leveraging a connection to the armed forces. Or even manage an SBA Express loan. But never forget: the best business rewards credit card is the one you’ll use, with rewards that make sense to you.

Let us work with you, and help you decide on what’s best for you and your business.

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Why do Lenders Prefer Using a Personal Credit Score to Approve a Business Loan?

Your Personal Credit Score Can Make a Difference When You Apply for a Business Loan

If you’re a small business owner, don’t assume your business credit is separate from your personal. If you apply for a loan, lenders will consider it on your personal credit, not your business credit. Your business credit score is considered on its own only if your company generates millions in annual income. Otherwise, assume that your personal credit score will matter.

Solid personal credit is a necessity.  The need to build and maintain it never goes away for most small company owners.

Some lenders (like banks) place more importance on personal scores. This is for checking business loan applications.

To establish your business’ creditworthiness, most lenders first analyze your personal credit score. This happens with organizations in operation for only a few years. It also happens with businesses seeking their first business loan.

So, small business owners must focus on creating a solid business credit profile. This is along with building a good personal credit score.

What is the Difference Between Business Credit Score and Personal Credit Score?

Here are the main variations between company personal credit scores:

  •       Business credit reports use Employer Identification Numbers (EINs). Personal credit reports use Social Security numbers (SSNs).
  •       The ranges of personal and business credit scores are very different. Business scores tend to vary from 0 to 100. The range of personal credit scores is 300 to 850.
  •     Experian manages both business and personal credit. They use separate databases and departments if you have both kinds of credit.
  •       You can freeze or lock personal credit reports. But business credit reports cannot be locked or go under security freeze.
  •       Different rules apply to data used in business and personal credit reports.
  •       Anyone can examine your business scores (they must buy the report and scores). But only you and others who have your authorization can access your personal scores.

When do Lenders Consider a Personal Credit Score for Approving Business Loans?

When reviewing creditworthiness for a business loan, most lenders  check personal credit history.

But some lenders will give your personal credit score less weight than others. Lenders may pay less attention to a poor personal credit score if you already have a track record of solid business credit.

Your personal credit will matter more for a business loan when any (or all) of the following are true:

a. If You’re Seeking a Loan from a Bank or Other Conventional Lender

You should assume banks have strict lending rules and often aren’t too flexible. But private lenders offer financial help. It’s in the form of business loans with low credit requirements. They provide funds considering a business owners’ personal score. This is even if the business score is low. Here, conventional lenders may check personal credit scores to offer you a business loan with flexible terms.

b. If Your Business is a Startup or Small in Nature

If your business score does not have enough info for lenders to check credibility, they will place a higher value on personal scores.

This can be the case with sole proprietorships or small businesses with few employees. Here, it may be hard for a conventional lender to distinguish between your business credit report and personal credit reports.

c. Your Personal Credit Score is Relatively Low

Even if you have a few old negative entries on your personal credit report, getting a business loan shouldn’t be tough. If your business’s credit history is excellent, then it shouldn’t be a problem.

But too many negative items on your personal credit history may damage your score. A low personal credit score is something a lender will notice and consider as a risk.

Your personal credit score reflects how you manage your personal credit liabilities. But some may argue that your personal credit score has nothing to do with how your business operates its business credit liabilities.

As a business owner, understand how your credit score is calculated, and how it’s used when you apply for a credit. And understand what you should do to improve it.

How is a Personal Credit Score Calculated?

The Federal Government improved credit reporting quality with the Fair Credit Reporting Act in 1970.

The consumer credit bureaus collect information from a consumer’s credit profiles to create FICO scores. Experian, Transunion, and Equifax are the three largest credit bureaus. These three major credit bureaus maintain the same basic formula to rate your credit. A personal credit score ranges from 300 to 850 and is rarely identical.

They calculate your FICO score using this basic, widely used formula:

Payment History (35%)

Late payments, judgments, and bankruptcies are problematic. So are debt settlements, repossessions, charge-offs, and liens in your credit report. They will lower your personal credit score.

Debt Owed (30%)

Your personal credit score also depends on your debt-to-credit limit ratio. And it depends on the number of credit accounts, the total amount of credit balances, and the amount paid off on installment loans.

Credit History (15%)

Your credit history plays an integral part in building your credit score. The average age of the accounts and the length of your oldest credit account are the two most important criteria. The longer (or older) the file is, the better. This is because the score tries to forecast future creditworthiness based on past credit history.

Credit Types (10%)

Having different types of credit shows your ability to handle many credit accounts. These types include revolving, installment, and mortgage credit. It will definitely have a positive impact on your credit score.

New Credit Accounts (10%)

Each new “hard” inquiry on your credit report may have an adverse effect and may lower your score by 10%. Per Experian, these inquiries may stay on your report for a few years. But they  will have no impact on your credit score after the initial year.

How Does This Information Build Your Credit Score?

Credit bureaus collect personal information like your name, date of birth, location, occupation, and more. They’ll also prepare a list of information that the creditors provide. Other information, like judgments or bankruptcy, will appear on your credit reports. It becomes part of your personal credit score. When you apply for new credit, your creditor will see all that info in your credit report and check your score.

If you find any inaccurate data reported, the credit bureaus have procedures in place to correct verifiable mistakes. Amendments to the Fair Credit Reporting Act in 1996 allow you to put a 100-word statement on any report that includes an item you dispute.

A range of factors can drive a bad credit score, including a divorce, severe illness, or loss of employment. This allows you to ensure that potential creditors are aware of the information.

Here’s what a potential creditor sees when they look at your score:

800-850 (Exceptional)

You should expect lenders to treat you like a king! With a credit score above 800, you can choose the best credit alternatives for your needs, and the best interest rates, from any lender you choose..

740-799 (Very Good)

If you have a credit score inside this range, lenders will treat you as a low-risk borrower. You can get a loan from almost any big lender with affordable rates. With this credit score, you can choose the best business loan that fits your business needs.

670-739 (Good)

This is a good score, and many people in the United States fall into this category. With this score, a borrower can hope to have more choices and approvals from various lenders.

580-669 (Fair)

This is a score that indicates a significant level of risk. A small business loan is feasible, but the interest rates will often be higher. If your score is in this range, you will have fewer possibilities than those with a higher level.

Most conventional lenders will not consider borrowers in this group for a small business loan. A personal credit score of 660 is the lowest that the SBA will typically consider.

300-579 (Very Poor)

Borrowers with this credit score can access some credit. But it’s considered a high-risk credit score. So there will likely be fewer possibilities and higher interest rates. If your score falls in this range and you want to get a business loan, consider offering some collateral.

How To Improve Your Personal Credit Score?

There is no simple solution to fix your personal credit score issues. But that doesn’t imply you can’t increase your score with time and effort. Here are six strategies to improve your personal credit score:

Analyze Your Score

You are entitled to get a free credit report once a year from annualcreditreport.com. You can get your credit report as many times as you want from all three major credit reporting agencies. These bureaus provide credit monitoring services for an affordable fee. Get your report from them and analyze it properly.

Make Good Use of Credit

This may sound oversimplified, but it’s critical. Resist the urge to use all your credit limits all the time. This is so even if you pay off the total outstanding debt balance every month through credit card debt consolidation. Using all the available credit further can damage your credit score.

Keep credit usage to roughly 15% of your available credit limit to increase your credit score.

Make Your Payments On Time

This is most likely the best and most successful strategy to improve your score. How fast you make payments and satisfy your liabilities makes up 35% of your score. A single late payment can significantly reduce your credit score.

Do Not Apply for Excess Credit

Applying for unnecessary credit reduces your credit score. So if you’re attempting to raise your score, it’s not a good idea.

Don’t Transfer Balances Too Often

Transferring balances from one credit card to another does not affect your credit score. But, it’s generally known as a wrong financial move that could harm your personal credit. Frequently transferring balances can put a bad impression on your future creditors.

Have Patience and Keep Trying

Improving your credit score requires strong determination and hard work. Your constant effort over six months or even a year can make a significant difference. But missing a payment or two will almost certainly lower your credit score fast.

About the Author: 

Lyle Solomon has considerable litigation experience. He has substantial hands-on knowledge and expertise in legal analysis and writing. Since 2003, he has been a member of the State Bar of California. In 1998, he graduated from the University of the Pacific’s McGeorge School of Law in Sacramento, California. He now serves as a principal attorney for the Oak View Law Group in California.

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Surprise! Charitable Credit Cards Really Do Exist

Truly, charitable credit cards do exist. But, how do you find them? Furthermore, how do you use them to support causes you care about? Finally, how do you find the right one for you? Oh, and can you use them for your business? Let’s find out. 

Top 3 Charitable Credit Card Options

Whether you want a card that donates to charities, community development, or the environment, you do have options. However, there aren’t a lot of them.  Furthermore, it takes some research to find exactly what you are looking for. 

Regardless, we’ve put together a list to help you get started. Remember, specifics such as interest rates and terms can change. So, you’ll need to check directly with the credit provider for the most up-to-date information. 

Score the best business credit cards for your business. Check out our professional research.

Green America 

According to the website, Green America uses a portion of each purchase to help to create a “more socially just and environmentally sustainable society.” Of course, Green American is a well known company. However, they do not make it clear exactly how using the card works to achieve this goal. As a result, you should contact them directly if you want more details. 

Initially, for the first 12 months, there is no annual fee.  Also, for this same time period there is no interest on purchases and balance transfers. After that, it varies between 9.99% and 19.99% based on how creditworthy you are. 

They do offer a rewards program as well. In fact, you earn one point per dollar on net purchases. There’s no limit, and the points do not expire. You can use points for travel rewards or merchandise. This is a consumer credit card. 

Aspiration

First, there is a waiting list for this card.  Still, if it’s something you feel strongly about you may want to get on it. Here is how it works. Every time you make a purchase, they plant a tree.   Even better, they let you plant one too. In addition, you can track your progress toward reducing your carbon footprint in the app.  Then, you get cash back up to 1% of all your purchases for each month that you get to zero. This is also a consumer card.

Amalgamated Bank 

Amalgamated Bank’s cards offer the chance to make a change. In fact, they call themselves “the bank for changemakers.” The company supports “sustainable organizations, progressive causes, and social justice.” 

They aim for environmental and social responsibility. They are “net-zero.”  Also, they use 100% renewable energy.  Furthermore, they pride themselves on their history of supporting immigrants, affordable housing,  and workers’ rights. 

For example, they work with over 1000 unions to ensure teachers, steelworkers, firefighters and others get what they need to do their jobs.

As a result, when you use credit cards from Amalgamated Bank you are supporting these same causes. 

Score the best business credit cards for your business. Check out our professional research.

Cards From Amalgamated Bank: 

They offer a number of credit card options for businesses. Here’s a little about each one. 

The Commercial Edition® Visa® 

This card works well for travel, entertainment, and other spending.  It helps companies keep control and improve cash flow.  Additionally, it also helps them understand their spending patterns by offering specific reporting options.  Furthermore, account  holders have the ability to establish spending limits for individual card holders. 

VOX® Business Card 

Similarly, this card is great for travel, entertainment, and purchasing. Surprisingly, VOX changes and grows with the business to give flexibility when it comes to cash flow and minimum payment options. The credit limit also tends to be high.  Terms and rates vary. 

Purchasing Edition® Visa® Card

The Purchasing Edition® Visa® Card is the one to go with if you need to receive goods faster and negotiate cheaper costs with suppliers.  You can also improve cash flow. 

Amalgamated states that you need to speak with an account executive for details on each card and which one might be best for your business. 

Other Resources For Help Finding Charitable Credit Cards

Another way to find options for charitable credit cards is to look for those that work with these agencies. 

The Global Alliance for Banking on Values

The Global Alliance for Banking on Values (GABV) is a network of leaders from banks around the world. They are committed to positive change in the banking industry.

Their goal is to change the entire banking system to support environmental, social, and economic sustainability.  The alliance is made up of a variety of banking institutions.

Score the best business credit cards for your business. Check out our professional research.

Community Development Financial Institutions (CDFIs)

According to Investopedia: 

“Community Development Financial Institutions (CDFIs) are private sector financial institutions that focus primarily on personal lending and business development efforts in poorer local communities requiring revitalization in the U.S.”

Of course, working with CDFIs is another way companies can offer support to each other and their communities. 

Charitable Credit Cards do Exist

As you can see, if you are looking for a charitable credit card, this is a good starting point. Depending on what you want, you may have to do more work however. For example, are you looking for a card that donates to a specific charity?  Rather, are  you more concerned with finding a company that holds to the same values you do? There is a card out there for you, but it may take some time to find it. 

Credit Suite can help you find credit cards and other funding options for your business. Find out more today.

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Service Credit Cards: A Valuable Source Of Funding

Organization Credit Cards: A Valuable Source Of Funding

One of the secrets to service success exists in enough resources: you require it to obtain with the ever-changing times of your little service. A current study revealed that 90% of tiny service proprietors make use of a company credit score card.

Accessibility to Funding
When beginning a brand-new organization, locating resources of financing can be an obstacle. A company charge card permits you very easy accessibility to a credit line. The credit line for service bank card is normally greater than individual cards.

Lots of service debt cards, consisting of the Platinum Business Credit Card from American Express and also the Chase Platinum Visa ® Business Card, supply 0% APR initial prices. This can aid start your organization.

Capital Solutions
Offering first financing, an organization credit rating card enables you to prolong money circulation. As you obtain cash money from customers as well as clients, you can pay off the credit score card equilibrium

With a company debt card, unlike a company one, you are directly accountable for paying off the financial debt. By establishing as well as tracking acquisitions up a repayment routine, you can prevent running right into debt card financial debt.

Bonus Bonuses
Service credit scores cards provide tiny firms a riches of advantages. As your company expands, you can include staff member cards.

An organization charge card will certainly aid you track expenditures. Annual as well as regular monthly declarations demonstrate how much you have actually invested, as well as some will certainly also classify products. This allows you to swiftly examine exactly how funds are being made use of.

Numerous organization bank card supply benefits programs. You might wish to get 5% money back on acquisitions, or gather factors that can be retrieved for traveling rewards and also various other incentives.

As you think about which charge card will certainly function best for you, check out your service and also its requirements. If you take a trip often, a benefits program with airline company miles is excellent. And also if you merely desire a lot more money accessible, seek a cash money back program.

Whatever you are looking for, opportunities are you will certainly be able to locate it in an organization credit report card. Sight your company debt card as one of the economic devices for your service.

One of the tricks to company success exists in enough funding: you require it to obtain via the ever-changing times of your little organization. A current study revealed that 90% of tiny company proprietors utilize a company credit scores card. The debt limitation for company credit rating cards is generally greater than individual cards.

Numerous organization debt cards, consisting of the Platinum Business Credit Card from American Express as well as the Chase Platinum Visa ® Business Card, provide 0% APR initial prices. Sight your company credit history card as one of the economic devices for your service.

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How to Check Credit Reports for Your Business

Do You Know How to Check Credit Reports for Your Business?

If you’re a business owner, chances are it’s been on your to-do list for quite a while: check credit reports. But do you know how to do this fast?

Business owners are always short on time. Find out here how to check credit reports with efficiency.

You Need to Check Credit Reports as a Part of Building and Maintaining Business Credit

Business credit is credit which is in a business’s name. It is does not tie to owner creditworthiness. Instead, business credit scores depend on how well a company can pay its bills. Hence consumer and business credit scores can vary.

Credit Reporting Agencies

There are three large business CRAs:

  • Dun & Bradstreet
  • Experian and
  • Equifax

There is also the FICO SBSS business score and CreditSafe. But today, we will focus on the big three’s reports.

Check Credit Reports for Your Business

The business credit reporting agencies offer a variety of reports, at all sorts of price points. We recommend getting detailed reports. That way, you can spot errors before they get out of hand.

If a report with details isn’t in the budget right now, at least a shorter summary report will keep you in the loop. And it will keep in the habit of checking your credit reports. It’s more than a credit score check. Today, we’ll look at high level data. This is what you absolutely must know.

Dun & Bradstreet

There are over millions of companies around the world in D&B’s database. You need a D-U-N-S number to start building business credit. No D-U-N-S number? Then get one; they’re free. The main score is PAYDEX. But a business will not get a PAYDEX score, unless it has at least 3 trade lines reporting, and a D-U-N-S number. A business must have BOTH to get a D&B score or report.

Predictive Models and Scoring

D&B takes historical information to try and predict future outcomes. This is to identify the risks inherent in a future decision. They take objective and statistically derived data, rather than subjective and intuitive judgments. There are sample reports online available on the D&B website.

D&B Rating

This rating helps companies quickly assess a business’s size and composite credit appraisal. Dun & Bradstreet bases this rating on information in a company’s interim or fiscal balance sheet plus an overall evaluation of the firm’s creditworthiness. The scale runs 5A—HH. Rating Classifications show company size due to worth or equity. D&B assigns such a rating only if a company supplies a current financial statement.

The rating contains a Financial Strength Indicator. D&B calculates it using the Net Worth or Issued Capital of a company. Plus there’s a Composition Credit Appraisal. This number runs 1 through 4, and it reflects D&B’s overall rating of a business’s creditworthiness. The scores mean:

  • 1 – High
  • 2 – Good
  • 3 – Fair
  • 4 – Limited

A D&B rating might look like 3A4.

D&B PAYDEX

This part shows two gauges: an up to 24 month PAYDEX, and an up to 3 month PAYDEX. Hence you can see recent history and a firm’s performance over time.

Both gauges have the same scores:

  • 1 means greater than 120 days slow (in paying bills)
  • 50 means 30 days slow
  • 80 means prompt
  • 100 means anticipates

100 is the best PAYDEX score you can get. The PAYDEX score is Dun & Bradstreet’s dollar-weighted numerical rating of how a company has paid the bills over the past year. It reflects how well a company pays its bills.

Financial Stress Score

This section shows a Financial Stress Class, and a Financial Stress Score Percentile. The Financial Stress Class runs 1—5, with 5 being the worst score.

Financial Stress Score Percentile

This is compares to other businesses. The percentile contains a Financial Stress National Percentile. The Financial Stress National Percentile reflects the relative ranking of a company among all scorable companies in D&B’s file. It also contains a Financial Stress Score. The report indicates the probability of failure with a particular score.

Financial Stress Score Percentile Comparison

The idea behind this score is to predict the chance that a business will fail over the next 12 months. The average probability of failure compares to other businesses in D&B’s database. The Financial Stress National Percentile reflects the relative ranking of a company among all scorable companies in D&B’s file. The Financial Stress Score offers a more precise measure of the level of risk than the Financial Stress Class and Percentile. It is meant for customers using a scorecard approach to determining overall business performance.

PAYDEX Yearly Trend

The PAYDEX Yearly Trend is a graph. It includes payment history in detail, with payment habits and a payment summary. It helps show if a business pays its bigger bills first or last

D&B Business Credit Monitoring

Pricing is current to September of 2021. You can use D&B Credit Monitor to check credit reports with D&B. It costs $39/month. View recent scores and ratings, and benchmark your business versus your industry. It also alerts you to special events like suits, liens, and judgments. And it includes dark web monitoring. This scans the dark web to help protect your business from potentially fraudulent activity.

Let’s take a look at Experian.

Experian

Experian has a massive consumer and commercial database that they use to gauge risk. 

“By combining personal and commercial credit information in one report, Experian provides a complete picture of the creditworthiness of small businesses.”

Their best known and most popular score is Intelliscore Plus℠, a percentile score.

Experian’s Intelliscore Plus℠

Business credit scores range 0—100. An Intelliscore Plus score of 0 represents a high risk. It reflects the percentage of businesses scoring higher or lower than the business under review.

Many large financial institutions around the world use it. So do more than half of the top 25 P&C insurers and most major telecommunications and utility firms. Industry leaders in transportation, manufacturing, and technology also use Intelliscore Plus as their main risk indicating model. It has more than 800 aggregates or factors affecting business credit scores. There are scores on millions of businesses in the Experian database.

What does Intelliscore Plus measure?

This is a highly predictive score. It provides a detailed and accurate reflection of a business’s risk. It blends commercial data and consumer data on the business owner or guarantor. Reports include information on trades, legal filings, and more.

The Experian Financial Stability Risk Score (FSR)

In an Experian business credit report, FSR predicts the potential of a business going bankrupt or defaulting on its obligations. The score identifies the highest risk businesses by making use of payment and public records which include:

  • Severely delinquent payments of 61+ and 91+ days
  • High utilization of credit lines
  • Tax liens
  • Judgments
  • Collection accounts
  • Industry risk
  • Short time in business, etc.

FSR shows a 1—100 percentile score, plus a 1—5 risk class. The risk class puts businesses into risk categories. The highest risk is in the lowest 10% of accounts. A score of 66—100 and a risk class of 1 means a low risk of default or bankruptcy. But a score of 1—3 and a risk class of 5 means a high risk of default or bankruptcy.

Experian Business Credit Monitoring

Experian offers monitoring services. Prices are current as of September 2021.

  • Business Credit Advantage: $189/year, monitor business credit for 1 year, alerts of changes
  • Business Credit Score Pro: $1995/year with trade details or $1495/year in summary form only, multiple business credit report access.
  • Profile Plus: $49.95 for a single report
  • Credit Score Report: $39.95 credit summary report with score.

Experian Subscription Plans: The Business Credit Advantage Subscription Plan

This is just one report including almost everything Experian offers. It includes:

  • Business Credit Score (Intelliscore)
  • Financial Stability Risk Rating
  • Collections and trade payment details

Experian Subscription Plans: The Business Credit Score Pro Subscription Plan

Get 30 reports per month but it’s not a free credit score. This does not include:

  • Alert Emails & Monitoring
  • Dispute Resolution Status Alerts
  • 3-Month Score Trend
  • Unlimited Access to Your Report
  • Business Identity Monitoring

Experian also offers an enhanced version of this plan. Get more information, including:

  • Trade payment detail
  • UCC detail
  • Inquiry detail

Currently costs $1,495 per year. So, it is far from being a free credit report!

Experian Reports: The Profile Plus Report

Check credit reports with everything in the Business Credit Score Pro Subscription Plan, plus (optional with the more expensive report):

  • Trade Payment Detail
  • Inquiry Detail
  • UCC Detail
  • Corporate Financial Information

Experian Reports: The Credit Score Report

Get everything in the Business Credit Score Pro Subscription Plan, but no optional sections. The credit score report is like a one-time version of the Business Credit Score Pro Subscription Plan. You can use it to decide if you want to subscribe to the more expensive plan.

Let’s turn to Equifax.

Equifax and Its Data

The company gets its data from a data sharing agreement with the Small Business Exchange. It gets net 30 type industry trade credit information from a wide variety of suppliers that provide products and services to businesses on an invoice basis. Equifax combines financial data with industry trade credit data, and adds utility and telephone data. It also adds public record information (bankruptcies, judgments, and tax liens).

Credit Risk Score

In an Equifax business credit report, the Credit Risk Score runs 101—992. Higher numbers are better. This section also shows key factors, which are positives and negatives about your business. Like how old your oldest account is, and if you have any charge-offs, and the size of your business.

Payment Index

This score runs 0—100. Higher numbers are better. It also shows Industry Median. 90+ means Paid as Agreed.

Business Failure Score

The next piece is on your Business Failure Score. This score runs 1000—1880. It has its own key factors, like recent balance information.

Equifax Business Credit Monitoring

Prices are current to September 2021. Check credit reports which include credit summary,  payment trends, and public records. The idea is to help you identify potential risk of late payments and business failure. Order a single Business Credit Report for $99.95. Or order a Business Credit Report multi-pack (5 for the price of 4) for $399.95.

Improving Your Business Credit Reports

Make sure vendors are reporting your payments. Always pay your bills on time. Pay them in full. Don’t close positive accounts. Try to avoid derogatories like liens.

Monitor Business Credit at D&B, Experian, and Equifax for Less

All these reports are expensive! You could spend HUNDREDS of dollars trying to keep up with reports from all three big business CRAs.

But did you know that you can get business credit monitoring for all three big business CRAs, and all in one place—for less? Credit Suite offers monitoring through its Business Finance Suite (through Nav). See what credit issuers and lenders see. So you can improve your scores and get the business credit and funding you need.

Check Credit Reports for Your Business: Takeaways

In general, the most important parts of any business credit report include:

  • Scores or graphs denoting risks of failure or nonpayment
  • Data on public records
  • Information on how quickly (or slowly) you pay your company’s bills

Improving reports means paying on time more than anything else. Reports can be expensive—we can help you monitor for less.

The post How to Check Credit Reports for Your Business appeared first on Credit Suite.

What’s the Best Credit Card for Points?

Wondering how to find the best credit card for points? Well, it’s a question easier asked than answered.  Everyone has different needs.  Some businesses do a lot of travel, some entertain more, and others simply need to get cash back on purchases. Due to these differences, it can take some time to find just the right card for your business.

The Best Credit Card for Points Depends on a Number of Factors

The thing is, there is a wide variety of credit cards out there. Some offer points at different rates for different types of spending.  Of course, redemption options vary greatly as well. You need to find a card that offers the most points for the types of spending you do the most, as well as the best redemption offers that will save your specific business the most money.

Check out how our reliable process will help your business get the best business credit cards.

 

Also, if you’re asking yourself “Are credit card rewards taxable?” the answer is, they might be. It’s important to keep that in mind.  There could be tax consequences associated with credit cards as well.

Here are some options we like when it comes to credit card rewards for points, but remember, details change frequently. We make every effort to update them regularly, but be sure to check with the card provider directly to ensure you have the most up to date information.

Alpine Bank Visa Platinum Rewards

The Alpine Bank Visa Platinum Rewards card boasts a $0 annual fee. There is also a balance transfer APR of 10%.  You earn one point per dollar spent, which is pretty standard. However, you also earn a 5,000 point bonus after you spend $3,000 in the first four billing cycles.  When you do the math, that is less than $1,000 per month in the first four months to earn an extra 5,000 points.  The annual percentage rate is 21% for cash advances and Prime + 8.74-14.74% for all other purchases.  

Bank of Hope Credit Card

The Bank of Hope Credit Card also has a $0 annual fee.  Better yet, you can earn a 5,000 point bonus with this card as well.  But, you only have to spend $1,000 in the first three months!  You earn 3x points on gas, 2x on travel + dining, and one point per dollar on all other purchases.  To top it off, there is a 0% introductory interest rate for nine months.  After that, it’s variable at 12.49%, 16.49% or 20.49%, based on creditworthiness after the end of the introductory period.

Union Bank Business Preferred Rewards Visa Credit Card

Union Bank’s Business Preferred Rewards Card offers a very large points bonus of 10,000 points. To qualify, you have to spend $5,000 in the first 3 months. You earn 5X per dollar spent, up to $25,000 annually, on certain business expenses. Some of these include office supplies, utility bills, and telecom services.  After that, you earn one point per dollar. You also earn 2X points up to $25,000 on gas and dining, and one point per dollar after that.  All other spending is one point per dollar.

There is a 0% introductory interest rate for the first 6 months.  Going forward, 11.99-20.99% variable.  There is no annual fee.

Check out how our reliable process will help your business get the best business credit cards.

US Bank Business Leverage Visa Signature Card

With the US Bank Business Leverage Visa Signature Card, there is no annual fee for the first year.  After that it is $95 per year.  If you spend $7,500 in the first four months, you earn 75,000 points. You also earn 2X points in your top two spending categories.

PNC  Points Visa Business Credit Card

This PNC Visa Business Credit Card for points offers 5 points per dollar on net  purchases. There is an introductory interest rate of 0% on the first 9 billing cycles on purchases.  Also, earn a $200 bonus when you spend $3,000 during the first three billing cycles.  There is no annual fee.

Choose the Right Credit Card for Points for Your Business

How do you choose the right card for your business?  Consider your spending.  Do you spend a lot on dining? Then, pick the card that offers the most points back on dining with the best bonus offer. For example, in the list above both the Bank of Hope and the Union Bank cards offer 2x points on dining. They also offer bonus points.

You may be thinking that the 10,000 points bonus offered by the Union Bank card is better, and you are right. That is, if your business will spend $5,000 in the first three months.  If not, you will likely be better off with the Bank of Hope card, where the bonus is half that, but you only have to spend $1,000 in the first three months.

It’s also important to note that there are sometimes expiration dates on points, so be sure you will be able to use them before they expire. If not, they are worthless. Bonus points may expire faster than other points, so watch for that too.

Check out how our reliable process will help your business get the best business credit cards.

As you can see, it’s important to carefully weigh the details to get the best deal. There are a lot of options, and some of the offerings are for a limited time. If you pay close attention though, you can find the best credit card for points to benefit your business.

The post What’s the Best Credit Card for Points? appeared first on Credit Suite.

Why do Lenders Prefer Using a Personal Credit Score to Approve a Business Loan?

Your Personal Credit Score Can Make a Difference When You Apply for a Business Loan If you’re a small business owner, don’t assume your business credit is separate from your personal. If you apply for a loan, lenders will consider it on your personal credit, not your business credit. Your business credit score is considered … Continue reading Why do Lenders Prefer Using a Personal Credit Score to Approve a Business Loan?

All You Need to Know About The 3 Credit Bureaus

What are the 3 Credit Bureaus for Business All About? Are they really different? The 3 credit bureaus all have reports – are any of them more valuable than the others? The 3 Credit Bureaus for Business There are three credit reporting agencies for business in the US: Dun & Bradstreet Experian Equifax Commercial These … Continue reading All You Need to Know About The 3 Credit Bureaus

Why do Lenders Prefer Using a Personal Credit Score to Approve a Business Loan?

Your Personal Credit Score Can Make a Difference When You Apply for a Business Loan

If you’re a small business owner, don’t assume your business credit is separate from your personal. If you apply for a loan, lenders will consider it on your personal credit, not your business credit. Your business credit score is considered on its own only if your company generates millions in annual income. Otherwise, assume that your personal credit score will matter.

Solid personal credit is a necessity.  The need to build and maintain it never goes away for most small company owners.

Some lenders (like banks) place more importance on personal scores. This is for checking business loan applications.

To establish your business’ creditworthiness, most lenders first analyze your personal credit score. This happens with organizations in operation for only a few years. It also happens with businesses seeking their first business loan.

So, small business owners must focus on creating a solid business credit profile. This is along with building a good personal credit score.

What is the Difference Between Business Credit Score and Personal Credit Score?

Here are the main variations between company personal credit scores:

  •       Business credit reports use Employer Identification Numbers (EINs). Personal credit reports use Social Security numbers (SSNs).
  •       The ranges of personal and business credit scores are very different. Business scores tend to vary from 0 to 100. The range of personal credit scores is 300 to 850.
  •     Experian manages both business and personal credit. They use separate databases and departments if you have both kinds of credit.
  •       You can freeze or lock personal credit reports. But business credit reports cannot be locked or go under security freeze.
  •       Different rules apply to data used in business and personal credit reports.
  •       Anyone can examine your business scores (they must buy the report and scores). But only you and others who have your authorization can access your personal scores.

Demolish your funding problems with 27 killer ways to get cash for your business.

When do Lenders Consider a Personal Credit Score for Approving Business Loans?

When reviewing creditworthiness for a business loan, most lenders  check personal credit history.

But some lenders will give your personal credit score less weight than others. Lenders may pay less attention to a poor personal credit score if you already have a track record of solid business credit.

Your personal credit will matter more for a business loan when any (or all) of the following are true:

a. If You’re Seeking a Loan from a Bank or Other Conventional Lender

You should assume banks have strict lending rules and often aren’t too flexible. But private lenders offer financial help. It’s in the form of business loans with low credit requirements. They provide funds considering a business owners’ personal score. This is even if the business score is low. Here, conventional lenders may check personal credit scores to offer you a business loan with flexible terms.

b. If Your Business is a Startup or Small in Nature

If your business score does not have enough info for lenders to check credibility, they will place a higher value on personal scores.

This can be the case with sole proprietorships or small businesses with few employees. Here, it may be hard for a conventional lender to distinguish between your business credit report and personal credit reports.

c. Your Personal Credit Score is Relatively Low

Even if you have a few old negative entries on your personal credit report, getting a business loan shouldn’t be tough. If your business’s credit history is excellent, then it shouldn’t be a problem.

But too many negative items on your personal credit history may damage your score. A low personal credit score is something a lender will notice and consider as a risk.

Your personal credit score reflects how you manage your personal credit liabilities. But some may argue that your personal credit score has nothing to do with how your business operates its business credit liabilities.

As a business owner, understand how your credit score is calculated, and how it’s used when you apply for a credit. And understand what you should do to improve it.

Demolish your funding problems with 27 killer ways to get cash for your business.

How is a Personal Credit Score Calculated?

The Federal Government improved credit reporting quality with the Fair Credit Reporting Act in 1970.

The consumer credit bureaus collect information from a consumer’s credit profiles to create FICO scores. Experian, Transunion, and Equifax are the three largest credit bureaus. These three major credit bureaus maintain the same basic formula to rate your credit. A personal credit score ranges from 300 to 850 and is rarely identical.

They calculate your FICO score using this basic, widely used formula:

Payment History (35%)

Late payments, judgments, and bankruptcies are problematic. So are debt settlements, repossessions, charge-offs, and liens in your credit report. They will lower your personal credit score.

Debt Owed (30%)

Your personal credit score also depends on your debt-to-credit limit ratio. And it depends on the number of credit accounts, the total amount of credit balances, and the amount paid off on installment loans.

Credit History (15%)

Your credit history plays an integral part in building your credit score. The average age of the accounts and the length of your oldest credit account are the two most important criteria. The longer (or older) the file is, the better. This is because the score tries to forecast future creditworthiness based on past credit history.

Credit Types (10%)

Having different types of credit shows your ability to handle many credit accounts. These types include revolving, installment, and mortgage credit. It will definitely have a positive impact on your credit score.

New Credit Accounts (10%)

Each new “hard” inquiry on your credit report may have an adverse effect and may lower your score by 10%. Per Experian, these inquiries may stay on your report for a few years. But they  will have no impact on your credit score after the initial year.

How Does This Information Build Your Credit Score?

Credit bureaus collect personal information like your name, date of birth, location, occupation, and more. They’ll also prepare a list of information that the creditors provide. Other information, like judgments or bankruptcy, will appear on your credit reports. It becomes part of your personal credit score. When you apply for new credit, your creditor will see all that info in your credit report and check your score.

If you find any inaccurate data reported, the credit bureaus have procedures in place to correct verifiable mistakes. Amendments to the Fair Credit Reporting Act in 1996 allow you to put a 100-word statement on any report that includes an item you dispute.

A range of factors can drive a bad credit score, including a divorce, severe illness, or loss of employment. This allows you to ensure that potential creditors are aware of the information.

Here’s what a potential creditor sees when they look at your score:

800-850 (Exceptional)

You should expect lenders to treat you like a king! With a credit score above 800, you can choose the best credit alternatives for your needs, and the best interest rates, from any lender you choose..

740-799 (Very Good)

If you have a credit score inside this range, lenders will treat you as a low-risk borrower. You can get a loan from almost any big lender with affordable rates. With this credit score, you can choose the best business loan that fits your business needs.

670-739 (Good)

This is a good score, and many people in the United States fall into this category. With this score, a borrower can hope to have more choices and approvals from various lenders.

580-669 (Fair)

This is a score that indicates a significant level of risk. A small business loan is feasible, but the interest rates will often be higher. If your score is in this range, you will have fewer possibilities than those with a higher level.

Most conventional lenders will not consider borrowers in this group for a small business loan. A personal credit score of 660 is the lowest that the SBA will typically consider.

300-579 (Very Poor)

Borrowers with this credit score can access some credit. But it’s considered a high-risk credit score. So there will likely be fewer possibilities and higher interest rates. If your score falls in this range and you want to get a business loan, consider offering some collateral.

Demolish your funding problems with 27 killer ways to get cash for your business.

How To Improve Your Personal Credit Score?

There is no simple solution to fix your personal credit score issues. But that doesn’t imply you can’t increase your score with time and effort. Here are six strategies to improve your personal credit score:

Analyze Your Score

You are entitled to get a free credit report once a year from annualcreditreport.com. You can get your credit report as many times as you want from all three major credit reporting agencies. These bureaus provide credit monitoring services for an affordable fee. Get your report from them and analyze it properly.

Make Good Use of Credit

This may sound oversimplified, but it’s critical. Resist the urge to use all your credit limits all the time. This is so even if you pay off the total outstanding debt balance every month through credit card debt consolidation. Using all the available credit further can damage your credit score.

Keep credit usage to roughly 15% of your available credit limit to increase your credit score.

Make Your Payments On Time

This is most likely the best and most successful strategy to improve your score. How fast you make payments and satisfy your liabilities makes up 35% of your score. A single late payment can significantly reduce your credit score.

Do Not Apply for Excess Credit

Applying for unnecessary credit reduces your credit score. So if you’re attempting to raise your score, it’s not a good idea.

Don’t Transfer Balances Too Often

Transferring balances from one credit card to another does not affect your credit score. But, it’s generally known as a wrong financial move that could harm your personal credit. Frequently transferring balances can put a bad impression on your future creditors.

Have Patience and Keep Trying

Improving your credit score requires strong determination and hard work. Your constant effort over six months or even a year can make a significant difference. But missing a payment or two will almost certainly lower your credit score fast.

About the Author: 

Personal Credit Score Credit SuiteLyle Solomon has considerable litigation experience. He has substantial hands-on knowledge and expertise in legal analysis and writing. Since 2003, he has been a member of the State Bar of California. In 1998, he graduated from the University of the Pacific’s McGeorge School of Law in Sacramento, California. He now serves as a principal attorney for the Oak View Law Group in California.

The post Why do Lenders Prefer Using a Personal Credit Score to Approve a Business Loan? appeared first on Credit Suite.