Understanding D&B Failure Score: What You Need to Know

Dun & Bradstreet (D&B) uses a scoring system called the D&B Failure Score to estimate the risk that a company will collapse over the next 12 months. This rating is based on a number of variables, including payment history, company age, industry risk, and other financial indicators. A higher score indicates a lesser probability of failure; the value runs from 1 to 100.

Popular credit monitoring service Credit Karma offers its members free credit scores and reports. The credit scores offered by Credit Karma and those provided by other credit bureaus, however, frequently differ from one another. Because Credit Karma employs a different scoring model than bureaus like Equifax, Experian, and TransUnion, this is the case. Furthermore, Credit Karma might not have full access to the data that other agencies do, which could lead to differing scores.

Equifax, Experian, and TransUnion are the three main credit bureaus in the US. Lenders, employers, and other organizations frequently use all three agencies to assess creditworthiness and risk. The most widely used bureau, however, varies by location and industry. For instance, mortgage lenders frequently use Equifax, whereas credit card businesses frequently use Experian.

The Internal Revenue Service (IRS) issues firms with a unique nine-digit number called an Employer Identification Number (EIN). Although an EIN is required for tax purposes, it is not linked to a credit score. However, a company’s creditworthiness can be assessed by looking at its financial statements and credit history.

It is feasible to perform a credit check on a company, yes. A corporate credit report can be obtained from a credit agency like Dun & Bradstreet, Experian, or Equifax to do this. The report will include details about the company’s credit history, payment history, and other financial indicators. Lenders, suppliers, and other organizations might use this information to assess the risk of doing business with the company.

In conclusion, it’s critical for both firms and lenders to grasp D&B Failure Score. D&B can predict the likelihood that a company will fail during the following 12 months by examining a variety of financial factors. The three major credit bureaus and services like Credit Karma are frequently used to assess an individual’s creditworthiness, but it is also possible to examine the creditworthiness of a business using a business credit report from a credit bureau.