From the course: Credit Secrets for Entrepreneurs

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No credit limits reported and payment history differs

No credit limits reported and payment history differs

From the course: Credit Secrets for Entrepreneurs

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No credit limits reported and payment history differs

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- Some credit scoring models compare balances to credit limits, but when there's no credit limit available, they will substitute the recent high credit, which is the highest balance reported on the account recently. If you've seen your consumer credit report, chances are, at the bottom, you've seen a grid that shows each of the last 24 months of payment history, and whether you paid on time or not. Then, it summarizes your payment history beyond the most recent 24 months. With business credit, they may summarize all payment history in buckets by a percentage of payments made on time. This is important to understand because if you were late three years ago, it won't always show when you were late or when you were reported as late. So again, you have to be a little bit more of a detective, and you may have to reach out to the creditor or the company reporting the information if you don't think the information about…

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