A business credit score is a measure of an organisation’s lending habits and history of repaying debts. The more diligently they are at paying their expenses on time each month, the better the business’s credit score will be. In this article, take a look at the differences between personal and business credit scores, why having a good credit score is important, and how to easily check your business credit score in South Africa.
A personal credit score is assigned to an individual with a history of credit. Clothing accounts, credit cards, mortgages, rent and car payments are the most common. A personal credit score will usually range between 330 and 850 points. The higher an individual’s personal credit score, the lower risk they are and thus more likely to repay future loans.
A business credit score is assigned to any business that takes out business loans, applies for business credit cards, or commits to some other form of business credit. Credit scores for business range between 400 and 760. The higher a business credit score is, the more inclined financial institutions will be to furnish that business with trade credit, cash advances, and future loans.
There’s more than one reason an individual or business would want to check their credit score. And businesses should also be checking their client’s credit scores, giving the business an idea of each client’s payment habits. The question is: how can you check it quickly and without any hassle or hoop jumping? That’s where online credit score checking websites like Cred-it-data come in.
Cred-it-data uncovers the answers you need to make better personal and business decisions. As a business, you can’t thrive if you work with clients who don’t make payments on time. You deserve to be paid for the work you do, and on time too. Cred-it-data is a registered credit bureau operating under license NCRCB25. We are also a member of the Credit Bureau Association.
Try our best practice, out-of-the-box commercial credit check solutions for any type of business, helping you take on new customers and set credit limits with confidence. Sign up to use Cred-it-data and try our online credit checking portal for South African businesses. Find out more by reading our customer stories, or contact us with any questions you might want answered.
If you’re new to online credit checks, perhaps take a look at our knowledge centre. Here you’ll find details about getting online credit score reports for people and businesses, answers to questions about bank codes and limits of discretion, and information about TransUnion, among other valuable insights.
journey into the known