DnB's Credit Limit Recommendation

[GR8WhiTE]

My CLR with DnB is ranked:

 

1 (low risk) with a limit recommendation of $2.5k-10k. Is there anyway to get an increase on that by calling in and asking?

[stroked89coupe]

I highly doubt it. But then again I try to avoid them every chance I get.

 

 

 

That limit does not mean much btw. And few creditors even use that information (Maybe the real small companys that don't have their own approval standards.)

Edited April 8, 2013 by stroked89coupe

[BRBiz]

Those limits are created based on your report so they won't change them. Those mean nothing and I can almost gurantee what creditors actually see and what you are see are different. It's to get you excited about it and spend money of their products. There may be 2 out of a 1000 companies they may actually go off those as a reference.

[chuff]

Most of you guys who say they mean nothing seem to be simply saying that because you do not actually know for sure if creditors use them or not

 

Most of the information on your dnb file is used.

 

That number is derived from a combination of your payment experience, the risk of the industry that you are in, and the stated income and number of employees. I have been that number go up by simply increasing the number of employees.

 

Also, I have teh ability to access dnb files as a creditor and although there is a little more information that you can see on the creditors version of dnbi, most of the information is about the same. Th difference is what each creditor does with the information and how they make their decisions on a company by company basis.

[BRBiz]

Most of you guys who say they mean nothing seem to be simply saying that because you do not actually know for sure if creditors use them or not

 

Most of the information on your dnb file is used.

 

That number is derived from a combination of your payment experience, the risk of the industry that you are in, and the stated income and number of employees. I have been that number go up by simply increasing the number of employees.

 

Also, I have teh ability to access dnb files as a creditor and although there is a little more information that you can see on the creditors version of dnbi, most of the information is about the same. Th difference is what each creditor does with the information and how they make their decisions on a company by company basis.

Yes correct and just like any other credit info creditors like to come up with there owns scores and such. This is even more true with business credit especially when a business CRA allows people to pay to add trades on to their report.

 

And I do know that a lot of creditors don't use that info and in fact use very little of what they get from DNB from talking to credit departments with various companies. It tends to be smaller companies that use a lot of the info they supply because they don't have a scoring system of their own.

[stroked89coupe]

 

Most of you guys who say they mean nothing seem to be simply saying that because you do not actually know for sure if creditors use them or not

 

Most of the information on your dnb file is used.

 

That number is derived from a combination of your payment experience, the risk of the industry that you are in, and the stated income and number of employees. I have been that number go up by simply increasing the number of employees.

 

Also, I have teh ability to access dnb files as a creditor and although there is a little more information that you can see on the creditors version of dnbi, most of the information is about the same. Th difference is what each creditor does with the information and how they make their decisions on a company by company basis.

Yes correct and just like any other credit info creditors like to come up with there owns scores and such. This is even more true with business credit especially when a business CRA allows people to pay to add trades on to their report.

 

.

 

 

Exactly. Relying on DNB for a recomended credit limit would prove disaster. Most companys use their own scoring systems that are taylored to THEIR needs and THEIR company. I'm sure DNB's credit recomendation is simply an average of what is already established.

[GR8WhiTE]

Thanks, good info guys, but do you think that score will increase once I add a trade reference above $10k? Whether they look at it or not, it's a psychological thing I guess. A bigger limit would make me feel better

[BRBiz]

Thanks, good info guys, but do you think that score will increase once I add a trade reference above $10k? Whether they look at it or not, it's a psychological thing I guess. A bigger limit would make me feel better

The $10k trade reference is what will make the difference not the DNB credit limit suggestion. Having high trades like that pushes you ahead for easier approvals with higher limts. That's why I always say quality over quantity. Any business should be able to pay a $100 bill but paying $10k bill shows creditors a lot more about your credit worthiness and ability to pay your bills.

[GR8WhiTE]

 

Thanks, good info guys, but do you think that score will increase once I add a trade reference above $10k? Whether they look at it or not, it's a psychological thing I guess. A bigger limit would make me feel better

The $10k trade reference is what will make the difference not the DNB credit limit suggestion. Having high trades like that pushes you ahead for easier approvals with higher limts. That's why I always say quality over quantity. Any business should be able to pay a $100 bill but paying $10k bill shows creditors a lot more about your credit worthiness and ability to pay your bills.

Very true

[johndoe3]

If you cant manage to at the trade reference of 10k try to repeat orders. Last month my credit limit was 2k - 10k. At the end of May I did a repeat order from Grainger, Uline, and reliable and my credit limit was increased to 15k - 30 as of June 3rd Try to repeat orders with your net 30's ......worked for me.

[msfgrp11]

If you cant manage to at the trade reference of 10k try to repeat orders. Last month my credit limit was 2k - 10k. At the end of May I did a repeat order from Grainger, Uline, and reliable and my credit limit was increased to 15k - 30 as of June 3rd Try to repeat orders with your net 30's ......worked for me.

What you are saying is very true but as you well know unless you make large purchases that exceed those values, DNB would not post them on a credit file. For instance, you may have a credit limit recommendation of $15,000.00 but unless you spend that much, nobody would actually know about it, it won't be reflected anywhere. Creditors routinely set credit limits based on your largest credit limits established by other merchants that you can actually physically see on a credit report. For instance, Citi, GE Capital Retail Bank, Wright Express, CNH Capital, John Deere Financing, Capital One Business Solutions, Comdata, etc., to name just a few of the largest creditors out there, they all have their own credit scoring models and consistently rely on additional data from Experian & Equifax, which indeed show actual credit limits, account activity, spending patterns, etc., to make their own credit decisions. None of those creditors utilize DNB credit limit recommendations as a basis for establishing credit limits. So as you progress into credit building, just keep in mind how valuable is to make sure that your Equifax and Experian credit files are as complete as possible and that the accounts you open report to those credit bureaus.

[BRBiz]

Exactly they can recommend what ever they want but you need to show lenders you can handle the limits given to you.. Your limits go hand in hand with your past payments and history.

[prevostconstruction]

Exactly they can recommend what ever they want but you need to show lenders you can handle the limits given to you.. Your limits go hand in hand with your past payments and history.

The recommended credit limits are pure bull. I have a racommended limit of $300,000. Really?

[prevostconstruction]

 

Exactly they can recommend what ever they want but you need to show lenders you can handle the limits given to you.. Your limits go hand in hand with your past payments and history.

The recommended credit limits are pure bull. I have a racommended limit of $300,000. Really?

And thats on the low end. I am almost too embarassed to say way the aggressive limit is.

[msfgrp11]

Exactly they can recommend what ever they want but you need to show lenders you can handle the limits given to you.. Your limits go hand in hand with your past payments and history.

Most definitely, there are no shortcuts to building business credit as well as personal credit for that matter! Everything is a process and it takes a bit of patience to achieve the desired objective! Pay your bills on time and higher credit limits would surely follow!

[BRBiz]

Stroked and I have gone back and forth a few tomes on the dollar amounts of trades and the importance or lack of importance of the amount. My opinion is quality over quantity meaning having one lets say $1000 trade is better then having 10 $100 trades. Will you see similar approvals probably but you will notice a difference in the given credit limits. A good example is WEX when I apply I wait till I have a $1k trade reporting and always get $4k limit as where stroked started at $1500 and I believe he said his largest trade is around $500 so there is a definite difference.