Consumers have been using the internet to get a better handle on their finances for over a decade. Sites that promise to show you your credit score – or some version of it—continue to help borrowers know where they stand before they take the plunge to apply for a credit card or personal loan. One of the best-known free services, Credit Karma, has earned a reputation as a way for anyone to get a peek at your creditworthiness without having to pull a full credit report or pay to see your FICO score.
While all of this is good news for anyone hoping to qualify for a competitive personal loan or credit card, it’s a bit more challenging for business owners. Many small company owners and startups aren’t clear on how to get a glimpse of their business credit score in the same manner as their personal score. What’s even more confusing is how important a personal score is in securing business credit. Let’s take a look at the facts on getting this information.
What info does Credit Karma (and others) really provide?
When you give Credit Karma, or any other score provider, permission to give you a score, you permit them to look at your credit history and other related information. Credit Karma, for example, provides a score based on VantageScore. Other providers may use information from your FICO score. While you can’t get your actual VantageScore or FICO score for free, these scores that sites like Credit Karma provide is usually pretty close. You can most certainly get an idea of your creditworthiness with these free scores and make informed borrowing and purchasing decisions from them.
While the scores from these sites are free, you do give a little something for the perk. These sites use affiliate partnerships with places like the credit card companies, debt consolidation firms, savings and loan institutions, and even finance apps to help nudge you toward the paid services that match up to your level of creditworthiness. Now that they know your credit history, they can show you targeted, pre-qualified ads and offers. If you choose to sign up based on their suggestions, these sites earn a fee. There is debate as to how these offers are shown to you; some sites may choose to pick offers based on how much they earn, not on how likely they are to be of use to you.
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Nav for Business (and Personal) Credit Scores
Business owners need to know where they stand, and—even when applying for a business credit card or loan—you’ll need to know your personal credit score. If you have been in business for less than two years, you may rely completely on your personal score to get a loan. If your business is older, the bank may lean on your business score for the bulk of their decision but still looks at your personal score as an assurance of replacement. In any case, getting a grasp of both your personal and business scores are simply the best way to be prepared for the process of applying for a loan.
How do you do this? You can choose to use a service that shows your personal score (like Credit Karma) and pull your business credit history from a company like Dunn and Bradstreet. A better (and free) option is to use Nav to get your personal and business scores in one simple action. This will give you the most comprehensive summary of your strengths and weaknesses, and you won’t have to contact the score services directly. Because low personal and business scores are the number one reason businesses get denied funding, it’s essential not to skip this step!
Nav for Credit Score Support
What do you do once you find out your scores from Nav? If you realize your score is too low for approval, it can be easy to become discouraged and think your journey to funding stops there. Nav is innovative in its approach, however, as it doesn’t just show your scores; it gives personalized advice and tools to help you work through your unique challenges so that you can raise both of your scores and get to a place of ideal creditworthiness.
These tools include educational articles that explain how business and credit rules work. You’ll get analyzers that help you simulate how money actions will raise or lower your current score. Finally, Nav will show you the best offers for your situation to help secure future funding and broaden your business horizons. If you aren’t in a position to get approved now, continued use of the site and its tools will help you get approved later. Nav has found that company owners who take advantage of the tools and education that Nav offers are 41% more likely to get that bank loan they really want!
Since business fraud is on the rise, it’s also imperative that business owners monitor their credit score and histories – even if they do not need additional funding. By using Nav’s services to monitor your business 24/7, you’ll know if your business profile or related personal and financial info is being used illegally.
Nav Puts Your Business First
Now that you know how free scoring sites work, and why Nav is the business version of these sites, you may question if the 100’s of credit card and loan offers that Nav shows will be genuinely tailored to you. While the site does instantly reveal your most likely business lending matches, it also takes care to prioritize the best offers first. Unlike other sites, which may show you offers based on the ones that are most profitable to the site, Nav treats all offers the same, using the personalized information you have given to give you insight that’s truly helpful for your business. They are not a lender. Their proprietary algorithm doesn’t favor any lender or outside business. They will favor you and your business.
Ready to see your credit data and start building better business credit? Check Your Personal and Business Credit For Free (No Credit Card Required).