The word “CREDIT” comes from the Latin word “CREDO”, which means “I Believe.” Wherever the term “Believe” arises, there are risks of being cheated. To avoid such risks credit reporting agencies are there to help. They track consumer’s and company’s financial records and generate reports for lending companies.
In general “credit” refers to a trust that induces you to receive money, goods, or services from someone and later repay them with a certain additional amount as interest.
Though both the words “Consumer credit report” and “commercial credit report” sound quite similar, but they are different. Before discussing the difference, we first need to know what these terms mean. While a consumer credit report refers to a person’s credit report, the commercial credit report refers to a business’s credit report.
Consumer Credit Report
A consumer credit report is important because it has a direct impact on your credit score. A Credit Report is an investigated report of your past 7-10 years of credit bill payment, auto loan, mortgage, opened accounts, closed accounts, etc. All this information will be used for creating credit scores which lenders will evaluate for deciding what kind of terms you can get on mortgages, credit cards.
While you are going to apply for a Credit card or a loan the lenders most likely want to know your creditworthiness. For this, the lender may access your credit report maintained by the three national credit reporting bureaus which are Experian, TransUnion, & Equifax.
Credit reports do not have information like race, gender, religion, national origin. Because lenders or credit issuers have only interest in your past financial breakdown and how you have managed that.
Credit reports are divided into different sections:
Personal Information – This includes your name, current and permanent address, date of birth, etc.
Liens & Judgements – Include tax liens and court judgments against you.
Summary – It summarizes the overall content of your credit report.
Account History – It shows the details of payments whether you paid timely EMI of the credit card, mortgages, and auto loan.
Inquiries By Creditors – Summarize the history of your credit applications.
Creditor Contacts – Contact details of your creditors.
Red Flag Compliance – Subtleties of illegal tax avoidance or terrorist financing.
Credit Score – A mathematically calculated 3-digit number that shows your creditworthiness. (It is a score that ranges from 0-100.)
Tradeline – A list of your credit accounts listed on your report.
Commercial Credit Report
A commercial credit report is a gathered report of your credit history and risks for commercial companies. It is essential if you are a lending company, or you want to sign a new contract or plan to extend the credit limit for your business.
Commercial credit reports are collected by credit reporting agencies and are sold by other companies for various purposes. The report is a collection of the financial behavior of companies gathered from various sources by credit reporting agencies like Equifax, Experian, TransUnion, PayNet, and Dun & Bradstreet.
The reporting agencies generate a report which includes:
Business Profile – Include details like company name, address, business type, phone no, etc.
Summary – Most valuable information about top-line data frequency & time frames of inquiries and the individual property security register over the past few years. Here you can identify the level of risks by the colors.
Credit Score – The 3-digit number that best describes your past financial behavior and how eligible you are for getting a loan.
Credit Details Summary – Details of the average number of days the business takes to pay the invoice as well as the credit limit combined with the number of suppliers listed.
Risk Dashboard – Show the potential risk factors for business and their level by colors.
Apart from this the report also includes Business facts, payment & legal filling summary, payment trending, collection experiences, trade payment summary, UCC filings, etc. Credit report bureaus have their strategy of generating information. The report may vary slightly with each other.
In general, both the reports do the same but one for consumers and another for businesses. The credit score does not impact your commercial credit score and vice-versa. But a better score makes you eligible for future credits like personal loans, auto loans, etc. The same applies to the commercial credit score too. A good score can help you in applying for credit in your crisis.
At Cloud Maven, Inc., a team of skillful developers has developed a fast and user-friendly app “Credit Checker” that pulls real-time credit information from major bureaus like Experian, Equifax, and TransUnion and provides a detailed report for your business instantly.
“Credit Checker” is an essential application to know your financial stability and potential. It lets you identify your weak spots within seconds with the goal that you can choose how you should deal with your financial decisions. The installation is simple, and our experts will help you in installing the application in your workflow. It usually takes an hour to install and additionally we would show you how it works with a live demo. You can download the report according to your requirement whether it is from a single bureau, dual-merge, or tri-merge.
And if you are from any organization and running credit reports daily is part of your business then “Commercial Credit Checker” would be the best choice for you. The fastest and reliable way to pull a commercial credit report from any major credit bureaus like Experian, Equifax, and PayNet in no time without leaving Salesforce.
“Commercial Credit Checker” is one of the most acclaimed salesforce-native applications that pull real-time business credit reports for more than 365 million businesses in 62 countries. That reports have all the necessary information like business details, risk dashboard, commercial fraud data, credit risk score, payment trends, credit score, etc that leads you to make an informed decision for your business.
The Commercial Credit Checker will amaze you with the instant result that you ever wished for. It will automate your business process by eliminating lots of manual steps which leads to increased productivity.
Kindly visit the Salesforce AppExchange and signup to enjoy a 30-day free trial for any of those applications.