The word “DUNS number” may be familiar to business owners. A unique nine-digit identification code known as a DUNS number is given to companies by credit reporting company Dun & Bradstreet. Lenders and suppliers frequently use it to evaluate a company’s creditworthiness. But can you get credit with your DUNS number?
The quick response is no. Both a credit score and a credit report are not the same as a DUNS number. To trace a company’s credit activity, all that is needed is an identifying number. Having a DUNS number, however, can aid in building corporate credit, which ultimately may result in better financing possibilities.
How then can you build company credit if you are unable to use your DUNS number for credit? Applying for a company credit card using your Employer Identification Number (EIN) is the first step. If used carefully, a business credit card is a great method to establish credit for your company. Keep your credit utilization low by paying off your bill in full each month.
Developing ties with suppliers and vendors who send credit report information is another strategy to increase corporate credit. By submitting your payment history to credit bureaus like Dun & Bradstreet and Experian Business, these creditors can aid in the development of your credit.
Speaking of Dun & Bradstreet, they provide a service known as a DUNS credit file, which is a report that details the credit history of your company. Lenders and vendors can assess your creditworthiness using this report. It’s vital to understand that this report, which lenders and suppliers use to determine your company’s creditworthiness, is not a credit score.
Either your EIN or DUNS number will be required when you apply for company credit. Knowing the differences between the two and when to use each is crucial. When requesting a business credit card, you are frequently asked to provide your EIN, which is used to identify your company for tax purposes. On the other side, your DUNS number is used to monitor the credit activities of your company and is frequently needed when submitting a loan or other financing request.
In conclusion, even though you cannot use your DUNS number to obtain credit, it is still a crucial corporate identifier. Although it requires time and work, establishing company credit is ultimately worthwhile. You can raise your company’s creditworthiness and financing possibilities by cultivating good connections with creditors and using credit sensibly.