Most business owners that have just started recently are often found asking, “What exactly is present on my business credit report?” Call it lack of knowledge, lack of practical business experience or anything else, but this question is asked by quite a few established business owners as well. We all know what a credit report is, we all know the kind of impact that it can have on our business and we also know how important it is to us. But, not many business owners know the important information present on their credit report.
In this article we shed some light on just how important your credit report is and the information that is present inside of it. The information inside a credit report is relevant to you as a business and plays an important role in determining how your credit loan is reviewed and processed by the authorities.
The first part of your credit report would include all the specific details pertaining to your business identity. Your business’s identity includes the name of your brand, the address, the phone number and the web page address that you currently have.
This section for your business’s identity also includes information related to other factors of your business, such as the size of the employees and other information.
The business identity section introduces your brand and lists down all the facts that are related to how you operate. This section is extremely important if you are applying for a small business loan, as it introduces your brand to the lender.
Coming to the actual purpose of your credit report, your credit report includes a detailed payment history of all the credit options that you have gone for.
The payment history mentioned in this section would include everything from the payment terms that you had previously gone for with your creditors to your adherence to the payment deadlines. This section also ends up having the biggest influence on your actual credit score. The credit score can change based on the kind of payment and credit history you have. If you have been unable to repay a loan on time, you would see a slight decrease in your credit score.
After your payment and credit history, your credit report would also include a mention of your credit utilization rate. The credit utilization rate is meant to specify just how much of your credit you have utilized. If you have a high credit limit on your cards, you should look to utilize a percentage less than 30 percent.
Finally, your credit report would include all public records that have been passed regarding you. All public records including bankruptcies, liens and other legal judgments will be included here.
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This post was written by firstdownseo