In getting a deeeper understanding of the value of credit score monitoring, a business owner must first analyze how their business credit profile is built, and learn what the score really means, as well as find out exactly who looks at it. Here are some facts about credit score monitoring and starting a new business. Collection Proceedings In evaluating your business credit report's collection proceedings, find out whether you have a history of letting your bills lapse, or whether some of your accounts have been sent to collection. Remember that some of your late payments could come as a result of other financial issues, or a dispute with your supplier. TransUnion for example, calls it the Empirica, while Experian calls it the Experian/Honest Isaac Risk Model. While these major companies have different names for the credit score, they still use the same formula for coming up with it. While the names used by the major credit companies are essentially the same, lenders often use just one credit report, to analyze your loan application. Basic Overview Of Credit Score Ranges A person s credit report is essentially an ongoing look at his or her personal information, and provides a deeper insight on how well the individual manages his or her finances, and pays their debts. The individual s financial data is submitted to a credit reporting agency by creditors, debt collection agencies, the courts and other public or federal agencies. Late Credit Card Payments and Large Balances Late credit card payments not only burden you with additional surcharges and fees, but it can also put a black eye on your credit history. According to credit report experts, poor payment history accounts for 35% of your total credit score, and even a single late payment can quikcly chop-off 100 points from your score. By incurring a number of missed payments and late payments, your credit scores will certainly fall back hard. The habit of continually missing on payments, or making late payments, gives your creditors an indication that you may do the same in the future, and so this greatly reduces your chances of availing loans from creditors in the future.