Verizon Business, like many other companies, has a significant impact on your credit profile. However, the specifics can vary depending on the type of account and the credit reporting agencies involved. Here’s what you need to know:
Consumer vs. Business Accounts:
Verizon offers both consumer (personal) and business accounts.
For consumer accounts, Verizon does report to all three major credit bureaus: Equifax, TransUnion, and Experian.
However, the situation is different for business accounts.
Business Credit Reporting:
When you apply for a business account with Verizon, they assess your creditworthiness using your business credit report.
Instead of relying on consumer credit bureaus, Verizon pulls information from Dun & Bradstreet (D&B), a prominent business credit reporting agency.
D&B collects data related to your business’s payment history, financial stability, and other relevant factors.
Verizon and Dun & Bradstreet (D&B):
Verizon does not directly report to the consumer credit bureaus for business accounts.
However, you have the opportunity to update your business credit profile with D&B yourself.
If you want your positive payment history with Verizon to reflect on your business credit report, follow these steps:
Register with D&B: Visit the Dun & Bradstreet website and create an account.
Submit Trade References: Add Verizon as a trade reference, providing details about your account and payment history.
Monitor Your Profile: Keep an eye on your D&B profile to ensure it accurately reflects your business’s creditworthiness.
Why Does It Matter?
A strong business credit profile is essential for obtaining financing, favorable terms, and vendor relationships.
Timely payments and positive credit behavior can enhance your business’s credibility and open doors to better opportunities.
Conclusion
In summary, while Verizon Business does not directly report to the consumer credit bureaus, it does impact your business credit through D&B. Be proactive in managing your business credit profile to maximize its benefits. Remember that maintaining a positive payment history with Verizon contributes to your overall creditworthiness in the business world.
What is Dun & Bradstreet?
Dun & Bradstreet (D&B) is a global company that provides businesses with proprietary data, software, and analytics to help them lower costs, mitigate risk, achieve their marketing and sales goals, and more. They serve approximately 135,000 clients internationally across various industries. Essentially, D&B offers business intelligence products through its database and analytics software, which are used to improve business profits, marketing strategies, and risk management. If you’re interested in understanding your business’s creditworthiness or accessing valuable insights, D&B is a key resource to explore!
How can I access my business credit report from D&B?
To access your business credit report from Dun & Bradstreet (D&B), follow these steps:
Obtain a D-U-N-S Number:
If you don’t already have one, apply for a D-U-N-S Number. This unique identifier serves as your business’s identification number.
You can check if your business already has a D-U-N-S Number using the DUNS Lookup tool on the D&B website.
Choose a Subscription Service:
D&B offers various subscription tiers for accessing business credit information:
Free Tier: Provides risk range indicators for scores and ratings, basic company information, payment history summary, and more.
Basic Tier: Includes detailed legal events, historical trends of credit scores, financial statements, and additional features.
Plus Tier: Offers dark web monitoring and more extensive features.
Select the tier that best fits your business needs.
Stay Informed:
With your chosen subscription, you’ll receive 24/7 alerts about changes to your business credit scores, inquiries, and new business events.
Monitor your credit file and proactively manage your business’s financial health.
Remember that maintaining a strong business credit file is essential for your success, whether you’re just starting out or looking to expand. Feel free to explore D&B’s offerings and make informed credit decisions!
What factors affect my business credit score?
Payment History:
Timely payments on loans, credit cards, and other obligations significantly impact your credit score.
Consistently paying bills on time demonstrates reliability.
Credit Utilization Ratio:
This ratio compares your outstanding credit balances to your available credit limit.
Aim to keep your utilization below 30% to maintain a healthy score.
Length of Credit History:
The longer your business credit history, the better.
Avoid closing old accounts, as they contribute positively to your score.
Public Records and Liens:
Negative public records (such as bankruptcies or tax liens) can harm your score.
Stay vigilant and address any legal issues promptly.
Credit Inquiries:
Each credit inquiry (when you apply for credit) affects your score.
Limit unnecessary inquiries.
Industry Risk Factors:
Some industries are considered riskier than others.
Your business’s industry can impact your credit score.
Company Size and Financial Stability:
Larger, financially stable companies tend to have better credit scores.
Demonstrating growth and stability positively influences your score.
Business Relationships:
Positive relationships with suppliers, vendors, and lenders can enhance your creditworthiness.
Maintain good communication and fulfill your obligations.
Remember that building and maintaining a strong business credit profile takes time and consistent effort. Regularly monitor your credit reports and address any discrepancies promptly.
How can I improve my business credit score?
Improving your business credit score involves consistent effort and strategic actions. Here are some steps to enhance your creditworthiness:
Pay Bills on Time:
Timely payments are crucial. Set reminders or automate payments to avoid missing due dates.
Monitor Your Credit Reports:
Regularly review your business credit reports from Dun & Bradstreet (D&B) and other credit bureaus.
Dispute any inaccuracies promptly.
Reduce Credit Utilization:
Keep your credit utilization ratio below 30%.
Pay down outstanding balances to improve this ratio.
Establish Trade References:
Work with suppliers and vendors who report positive payment history to D&B.
These trade references can boost your credit profile.
Diversify Credit Types:
Mix different types of credit (e.g., credit cards, lines of credit, loans).
Demonstrating responsible management across various accounts is beneficial.
Build a Longer Credit History:
Maintain older accounts; closing them can shorten your credit history.
Newer businesses can start by establishing credit lines.
Avoid Overextending:
Apply for credit only when necessary.
Too many inquiries can negatively impact your score.
Separate Personal and Business Finances:
Establish a separate business bank account and credit card.
This helps maintain clear financial boundaries.
Stay Informed:
Educate yourself on credit management best practices.
Attend workshops or seek professional advice if needed.
Remember, improving your business credit score is a gradual process. Consistency and responsible financial behavior will yield positive results over time.