Decoding DUNS Scores: What's Considered a Good DUNS Score and How to Improve Yours

As a business loan broker or entrepreneur, you know how important it is to maintain a good credit score. A good credit score can help you secure financing, attract new clients, and grow your business. But what about your DUNS score? Many lenders use a DUNS score, which is based on your business's creditworthiness and payment history, to evaluate your creditworthiness. In this blog post, we'll explain what a DUNS score is, what's considered a good DUNS score, and provide tips on how to improve yours.

What is a DUNS Score?

A DUNS score is a rating assigned by Dun & Bradstreet (D&B) to a business, based on its payment history and creditworthiness. D&B uses a complex algorithm to calculate the score, taking into account several factors such as payment history, financial stability, and business size. A DUNS score ranges from 1 to 100, with higher scores indicating better creditworthiness.

What's Considered a Good DUNS Score?

A good DUNS score varies depending on the industry and the lender's criteria. Generally, a DUNS score of 80 or above is considered good, while a score of 60 or below is considered high risk. However, keep in mind that different lenders may have different thresholds for what they consider a good DUNS score. It's essential to check with your lender to determine their specific criteria.

How to Improve Your DUNS Score?

If you have a low DUNS score, don't worry. There are steps you can take to improve it:

1. Monitor your credit report

The first step in improving your DUNS score is to monitor your credit report. Check for errors or fraudulent activity and dispute any inaccuracies with D&B. Ensure that all of your payment histories are up-to-date and correct.

2. Pay your bills on time

Paying your bills on time is one of the most crucial factors in determining your DUNS score. Late payments can have a significant impact on your score. Ensure that all of your payments are made on time, or early, to improve your score.

3. Maintain low credit utilization

Credit utilization is the percentage of your available credit that you're currently using. High credit utilization can negatively impact your DUNS score. Aim to keep your credit utilization at 30% or less to maintain a good score.

4. Establish credit accounts with suppliers and vendors

Establishing credit accounts with suppliers and vendors is an effective way to build your credit history and improve your DUNS score. Make sure to pay your bills on time and in full to show that you're a reliable borrower.

5. Keep your business information up-to-date

Make sure that your business information is up-to-date and accurate. This includes your business address, phone number, and other contact information. Keeping your information up-to-date can help lenders find and evaluate your business more easily.

Conclusion:

Maintaining a good DUNS score is crucial for the success of your business. A good DUNS score can help you secure financing, attract new clients, and grow your business. By monitoring your credit report, paying your bills on time, maintaining low credit utilization, establishing credit accounts, and keeping your business information up-to-date, you can improve your DUNS score and increase your creditworthiness.

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