Understanding DUNS Numbers and Business Credit Bureaus

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⏱️ 6 min read

Understanding how business credit bureaus work and the role of DUNS numbers is crucial for building and maintaining strong business credit. This comprehensive guide will help you navigate the complex world of business credit reporting and maximize your credit building efforts.

What is a DUNS Number?

A DUNS (Data Universal Numbering System) number is a unique 9-digit identifier assigned to businesses by Dun & Bradstreet (D&B). It’s the most widely used business identifier in the world and is required by many lenders, suppliers, and government agencies.

Why DUNS Numbers Matter

For Business Credit:

  • Required for most business credit applications
  • Used by all major business credit bureaus
  • Essential for government contracts
  • Required by many suppliers and vendors

For Business Operations:

  • Establishes business identity
  • Enables credit reporting
  • Facilitates supplier relationships
  • Required for many business registrations

The Three Major Business Credit Bureaus

1. Dun & Bradstreet (D&B)

Overview:

  • Largest and most influential business credit bureau
  • Used by 90% of Fortune 500 companies
  • Required by most government agencies
  • Most comprehensive business database

Key Products:

  • D-U-N-S Number
  • PAYDEX Score (0-100)
  • Business Credit Report
  • CreditBuilder service

PAYDEX Score Ranges:

  • 80-100: Excellent payment history
  • 70-79: Good payment history
  • 50-69: Fair payment history
  • 0-49: Poor payment history

2. Experian Business

Overview:

  • Second largest business credit bureau
  • Used by many financial institutions
  • Strong focus on small business data
  • Comprehensive business intelligence

Key Products:

  • Intelliscore Plus (0-100)
  • Business Credit Report
  • Business Credit Monitoring
  • Risk assessment tools

Intelliscore Plus Ranges:

  • 76-100: Low risk
  • 51-75: Medium-low risk
  • 26-50: Medium risk
  • 1-25: High risk

3. Equifax Business

Overview:

  • Third major business credit bureau
  • Used by lenders and insurance companies
  • Strong focus on commercial credit
  • Industry-specific scoring

Key Products:

  • Business Credit Risk Score (0-100)
  • Business Credit Report
  • Commercial credit monitoring
  • Industry risk assessments

Business Credit Risk Score Ranges:

  • 90-100: Excellent
  • 80-89: Good
  • 70-79: Fair
  • 0-69: Poor

How Business Credit Bureaus Work

Data Collection

Sources of Information:

  • Trade references (suppliers and vendors)
  • Public records (liens, judgments, bankruptcies)
  • Financial institutions (banks, credit unions)
  • Government agencies (tax liens, UCC filings)
  • Business registrations (state filings, licenses)

Data Types Collected:

  • Payment history
  • Credit utilization
  • Public records
  • Business information
  • Financial data

Credit Scoring

Factors Considered:

  • Payment history (40-50% of score)
  • Credit utilization (20-30% of score)
  • Credit history length (10-20% of score)
  • Public records (10-20% of score)
  • Business information (5-10% of score)

Scoring Models:

  • Each bureau uses different algorithms
  • Scores are not directly comparable
  • Industry-specific factors may apply
  • Regular updates and adjustments

Getting Started with Business Credit Bureaus

Step 1: Obtain Your DUNS Number

How to Get a DUNS Number:

  1. Visit D&B’s website
  2. Search for your business
  3. If not found, create new listing
  4. Complete business information
  5. Verify information accuracy
  6. Receive DUNS number (usually within 24 hours)

Cost:

  • Free for basic DUNS number
  • Paid services for enhanced features
  • CreditBuilder: $39-99/month
  • Premium services: $200-500/month

Step 2: Register with All Three Bureaus

Dun & Bradstreet:

  • Register for CreditBuilder account
  • Verify business information
  • Set up credit monitoring
  • Establish trade references

Experian Business:

  • Create business profile
  • Verify business information
  • Set up credit monitoring
  • Establish trade references

Equifax Business:

  • Register business profile
  • Verify business information
  • Set up credit monitoring
  • Establish trade references

Step 3: Establish Trade References

What Are Trade References:

  • Suppliers who report payment history
  • Vendors with credit accounts
  • Service providers with payment terms
  • Any business that extends credit

How to Establish Trade References:

  • Apply for vendor credit accounts
  • Use credit for business purchases
  • Make payments on time
  • Request reporting to credit bureaus

Building Credit with Each Bureau

Dun & Bradstreet (D&B)

PAYDEX Score Building:

  • Establish 4+ trade references
  • Make payments on time or early
  • Maintain consistent payment history
  • Use D&B CreditBuilder service

Key Strategies:

  • Focus on suppliers who report to D&B
  • Make payments before due dates
  • Establish diverse credit types
  • Monitor PAYDEX score regularly

Experian Business

Intelliscore Plus Building:

  • Establish trade references
  • Maintain low credit utilization
  • Avoid public records
  • Build credit history over time

Key Strategies:

  • Use suppliers who report to Experian
  • Keep credit usage below 30%
  • Pay all bills on time
  • Monitor credit reports regularly

Equifax Business

Business Credit Risk Score Building:

  • Establish trade references
  • Maintain payment history
  • Avoid negative public records
  • Build credit over time

Key Strategies:

  • Use suppliers who report to Equifax
  • Maintain consistent payment patterns
  • Avoid liens and judgments
  • Monitor credit reports regularly

Common Mistakes to Avoid

1. Not Registering with All Bureaus

  • Register with all three major bureaus
  • Don’t focus on just one bureau
  • Each bureau has different data sources

2. Inconsistent Business Information

  • Use same business name everywhere
  • Keep address consistent
  • Maintain same phone number
  • Use same EIN consistently

3. Not Establishing Trade References

  • Apply for vendor credit accounts
  • Use credit for business purchases
  • Make payments on time
  • Request reporting to bureaus

4. Ignoring Credit Monitoring

  • Check reports regularly
  • Dispute errors immediately
  • Monitor score changes
  • Track credit building progress

5. Not Understanding Score Differences

  • Each bureau uses different algorithms
  • Scores are not directly comparable
  • Focus on building credit with all bureaus
  • Don’t compare scores between bureaus

Monitoring Your Business Credit

Credit Monitoring Services

Dun & Bradstreet:

  • CreditBuilder: $39-99/month
  • Credit monitoring and alerts
  • Score improvement tools
  • Trade reference management

Experian Business:

  • Business Credit Advantage: $39-99/month
  • Credit monitoring and alerts
  • Score improvement tools
  • Risk assessment tools

Equifax Business:

  • Business Credit Monitor: $39-99/month
  • Credit monitoring and alerts
  • Score improvement tools
  • Risk assessment tools

Free Credit Monitoring

Free Options:

  • Check reports annually (free)
  • Use free trial periods
  • Monitor through credit card companies
  • Check with business associations

Limitations:

  • Limited access to reports
  • No real-time monitoring
  • Limited score improvement tools
  • No trade reference management

The Bottom Line

Understanding DUNS numbers and business credit bureaus is essential for building strong business credit. The key is to register with all three major bureaus, establish trade references, and maintain consistent payment history.

Remember, building business credit is a long-term process that requires patience and consistency. Start early, be systematic, and monitor your progress regularly. Your business credit profile will become one of your most valuable business assets.

Ready to take your business credit to the next level? Learn how to optimize your credit strategy with our guide: “The Complete Guide to Business Credit Scores and How They’re Calculated” to maximize your credit building efforts.