Today, most municipal and city governments are turning to collection agencies to salvage hese unpaid bills, especially if your dilly-dally on repaying them. For example, if a collection agency reports that you weren't able to pay overdue parking tickets or library fines, this could make your credit score drop by as much as 100 points. Standard Credit Score Ranges Credit scores generally vary a little bit, from one credit reporting agency to another. To develop the credit scoring system, a creditor generally weighs each of the major factors, based on how each of the factors predicts whether a person is deemed a good credit risk. Credit scores generally have a range between 300 and 850. Once you find out the exact requirements, accomlish each one of them, and personally assess your credit standing. Also ensure that your buisness has at least five lines of credit with vendors who normally report to business credit rating companies and agencies. Report Your Transactions To The Major Credit Bureaus Once you determine the requirements of credit bureaus, the next step should be to report your transactions and financial undertakings to the major creidt burueaus today. You ll also be able to immediately notice if ever there are any inconsistencies, inaccuracies or flaws within your report. By immediately finding out any numerical or typographical errors, this allows you to quickly file disputes to correct any inaccuracies. Aside from alerting you of any fraudulent activity or inconsistencies, a credit monitoring service can also help you effectively manage your credit. While a number of firms track business profiles, the main business profile tracker is the Paydex system, which works like the FICO score for personal credit score. Why Monitoring The Credit Report Is Important For Small Business Owners One of the most important aspects that aspiring business owners needs to do, is monitor their credit report. As most of the data here is self-reported, the business owner must always make sure that the data filled in is accurate and updated. Credit Rating Determine if your credit rating is poor, average or strong. Because credit reporting firms and agencies often use different scoring methods, some of the ratings may not be the same.