Personal or business credit reports may contain discrepancies.

For example, sometimes personal credit reports show outstanding student loans for amounts already settled or a late payment fee for a bill that was received after the due date. If you’re relocating your business, keep track of your utility, medical and credit card bills which accrue large late fees if they get lost in the shuffle. All situations lower the individuals score and should be immediately tended to. Personal credit adjustments can take anywhere from two to four months.

Likewise, small business owners should track their business credit report on Dun & Bradstreet (D&B) to check for inaccuracies in the business description, supplier payment history or existing liens on the business. Because D&B reports are self-reporting they frequently contain wrong information. Adverse remarks can affect a business’s ability to procure capital or contracts from the government or large institutions.

Dun & Bradstreet (D&B) is the largest provider of business information worldwide. Lenders and large contractors often check with D&B for background information on a company before granting a loan or assigning a project. It’s important to register your business, or if your company is already registered, review your profile for any inaccuracies that could adversely affect your credit.

What does D&B registration entail?

• Registered businesses are assigned a credit score, establishing legitimacy in the marketplace. Every registered business on D&B list receives a nine-digit code (D-U-N-S Number).
• The U.S. government and many major corporations require their suppliers and contractors to have a D-U-N-S Number.
• Potential customers, suppliers and lenders can easily identify and learn about a company.

Credit usage is the key factor in determining your FICO (Fair Isaac & Co.) score. Characteristics are weighed according to their predictive power. Factors with the highest weights are collections, judgments, bankruptcies, late payments, current balances, too few or too many revolving accounts, finance company accounts, number of accounts opened in the past 12 months and number of credit inquiries.

FICO scoring looks at credit patterns over a period of time. In other words, one late payment will not ruin your credit score. However, a history of late payments and high credit balances can have a serious effect on your score. Here are some things to keep in mind:

• A late mortgage payment will affect your credit score more than a late credit card payment
• Outstanding credit card debt or personal lines of credit should not be more than 50 percent of the total limit
• Frequent credit inquiries drag down your score
• New mortgages which have been duly serviced for a period of at least three months can boost your rating
• Older trade lines weigh in more towards your score

Credit bureaus grant individuals one credit inquiry every year. Any additional inquiries reduce your score. The degree of the score reduction depends on whether the credit inquiry is a soft pull or one used for debt product qualification, like a credit card.

A soft pull is defined as a credit viewing conducted by one bureau or all three (Trimerger Report) to check the score or look for discrepancies. These types of inquiries only affect the credit score minimally (two to three points normally). However, soft pulls done repeatedly during a period of one month can affect the credit score by up to 20 to 30 points.

Likewise, customers shopping for debt products should be extremely careful. Agencies must pull a full report to qualify potential clients. Several detailed credit inquiries over a short period of time can severely damage your score (sometimes by 70 to 80 points) which may stifle your chance of locking in a low interest rate. Lenders view multiple credit inquiries as a sign that you have been turned down by other lenders, therefore flagging you as a credit risk.

To ensure a happy holiday shopping season, be selective and protective of your credit report.