Hey it's Ty Crandall, with credit suite and in this short video, I want to introduce to
you your Experian credit scores. By the end of this training you're going to know how your Experian
credit scores work and most importantly how you can control them. So look your Experian
commercial credit score is very very very important because this is the number one score used by
credit issuers to determine if you should be approved or denied or how much you should be
and the rates and terms that you'll pay so if you ever want to get revolving lines of credit
or credit cards for your business then having a good Experian Intelliscore is vital to you
approved for being able to get the most money at the best terms. So Experian Intelliscore is used to
determine how likely you are to go delinquent on your revolving account so a matter of fact it actually
looks at how likely you are to go over 90 days late on your revolving accounts. Now Intelliscore
is the main score used for revolving credit it's also the second most popular score used in the
commercial credit scoring world. Now again the score is used to depict if you're going to be 90
days late or have a major financial issue and the scores broke down into different components
unlike other commercial credit scores. So if we look at the three main credit scores in
the business world Dun & Bradstreet, Equifax, and Experian. Dun & Bradstreet and Equifax
main credit scores are only based on how you pay your bills as long as you pay your bills
on time or early you'll have good scores, but Experian Intelliscore is very different it
broke down into these individual. Let's take a look and see how this breaks down so 5 to 10%
of your credit score is your payment history it's basically based on how you pay
your bills. Now it's important to note that in the commercial credit scoring world you are
considered late if you pay even one day past the day that your payment is due. In the consumer world
you can't even be counted late on your credit report unless you're 30 days late, but in the business
world we call this DBT or Days Beyond Terms and even when you're one day late it adversely affects
your credit score with Experian this accounts for 5 to 10% of your overall credit
score with them including your Intelliscore. So your current payment status or the trade
balances the percentage of accounts delinquent account for 50 to 60% of your total score
so what kind of balances do you have in relation to your limits are you paying those accounts on
time or on average are they oftentimes paid late. That accounts for up to 60% of your overall score
now credit utilization accounts for another 10 to 15% of your score this is very interesting
because in the business world utilization only factors into this one score offered by Experian.
But the percentage of a into the percentage of utilization or basically the difference between
what your limit is and what you owe accounts for 10 to 15% of your total score with Experian
and your company profile including the age of your business your industry risk your size including
your employees accounts for 5 to 10% of your total score. Now this is where things get
really interesting because Experian will give you a failing credit score even if you have no
credit and the reason this happens is that if they know your business name and address and if they
don't like your industry then what they'll do is they'll oftentimes look at the number of employees
to gauge your risk and if you're starting up or you don't have a lot of employees then that will
automatically get you a failing score. So it's very important with Experian all reporting
agencies that you know what your NAICS code or your industry code is that you make sure
it's correct with the bureaus or otherwise you can have it held against you and be held accountable
for you being in a high-risk industry when you actually might not be. So here's the breakdown
of your Experian Intelliscore the last factor is your derogatory items which accounts to 10 to 15%
of your overall score, liens, judgments, collections, bankruptcies, more of the things that are really
comprised in the public record section of your Experian report. All is calculated into this
10 to 15%. So now you know the five factors that account for your Experian Intelliscore but here's
one important thing to look at when you look at this math up to 85% of your overall
score really comes down to one thing. You pay your bills on time or not so even though that's not a
100% of the score with Experian these other factors are calculated in you'll see that
with these ranges if you look at the high range as much as 85% really has to do with do
you pay your bills on time or do you not. So if you do that one thing pay your bills on time or early
that's going to help you have the best credit score with Experian and having a good Intelliscore
with Experian is the key to getting approved for credit revolving credit including credit cards and
credit lines getting the most amount of money and getting it at the best terms. For more information
on building your business credit grab our free guide at creditsuite.com/einguide
so you can build an awesome business credit profile and score for your business and get away
from personal guarantees personal liability and get this credit without a personal credit check.