Experian, along with Equifax and Dun & Bradstreet (D&B), are the three major credit bureaus in the U.S. that gather data on small businesses and assign risk-based credit scores. These scores help lenders and creditors assess how likely your business is to default on payments. (Note: This article focuses solely on Experian’s scoring system.)
Experian Score Range Explained
Experian’s Intelliscore Plus℠ model compiles data from thousands of sources daily. That information is processed through an algorithm that uses hundreds of variables to calculate a business’s credit score based on its potential risk.
Lower scores indicate a higher risk of borrower default. Scores range from 1 to 100 and align with the following risk categories:
1 – 10 = High Risk
11 – 25 = Medium to High Risk
26 – 50 = Medium Risk
51 – 75 = Low to Medium Risk
76 – 100 = Low Risk
There’s no single number that qualifies as “good.” Each lender, credit card issuer, or vendor may interpret your score differently when deciding to extend credit or set interest rates.
By the way, Experian reports the average business credit score is 62—slightly above the medium-risk range. That’s worth noting for anyone feeling uncertain about where they stand. Also, shoutout to the word “quintile” for making a rare appearance.
How Experian Calculates Your Business Credit Score
While Experian doesn’t publicly share its exact scoring formula, it does note that your score is based on three broad categories:
1. Credit History
This includes past payment behavior with suppliers and creditors, frequency of late payments, and how much of your credit line you’ve used. It also considers transaction volume and trends over time.
2. Public Record Data
This involves any financial or legal liabilities pulled from public sources—not reported directly by vendors. Examples include judgments, bankruptcies, mortgages, and liens against business assets.
3. Demographic Information
Experian also considers the age of your business, its size, and industry-specific trends that could impact your financial outlook.
Best Practices for Maintaining a Strong Experian Score
- Pay vendors on time, or early if possible. Even a few late payments can negatively affect your score for months.
- Keep credit utilization low. Using a small portion of available credit signals responsible financial behavior.
- Work with vendors that report to Experian. More reported transactions, assuming they're on-time, can help boost your score.
- Avoid secured loans unless necessary. Lenders may file a UCC lien, which Experian treats as a negative mark on your report.
- Separate business and personal finances. This helps preserve your business profile and keeps your records clean.
How to Check Your Experian Business Credit Score
Knowing your score is crucial for planning financial strategies, such as accessing loans or attracting investors. A good score can also build confidence with potential partners by showing that you run a financially sound business.
It’s smart to monitor your credit report regularly so you can catch and dispute any errors or incorrect negative information reported by vendors.
You can:
- Make a one-time purchase of your business’s credit report (which includes your credit score, public record data, and payment trends), or
- Sign up for monthly or annual plans that give you ongoing access and monitoring tools.
