In the transportation industry, trust is currency. Carriers must rely on freight brokers not only to connect them with reliable shippers but to pay them on time for services rendered. With rising operational costs and ongoing risks of fraud, carriers have become more selective than ever in who they choose to work with. One of the first places they turn when evaluating a broker? The broker's credit report.

Whether you're a new brokerage trying to establish relationships or a seasoned operation looking to grow your carrier network, understanding what carriers look for in your credit profile can mean the difference between consistent coverage and missed opportunities. In this blog, we’ll explore the key credit report elements carriers focus on, how those factors influence their decisions, and what you can do to maintain a broker profile that gives carriers confidence.

Table of Contents

1. Why Credit Reports Matter to Carriers
2. Key Elements Carriers Evaluate in a Broker’s Credit Report
   1. Transportation Risk Score
   2. Days-To-Pay (DTP) Trend
   3. Reported Payment Experiences
   4. Claims or Disputes
   5. Business Longevity and Reporting Activity
   6. Verified Company Information
3. How Carriers Use Credit Reports to Make Decisions
4. Why You Should Care as a Broker
5. Improving Your Credit Profile: A Strategic Advantage
   1. Submit Carrier References
   2. Resolve Any Outstanding Claims
   3. Stay Active and Transparent
   4. Monitor Your Report Regularly
   5. Enroll in a Credit Management Program
6. Conclusion

Why Credit Reports Matter to Carriers

Carriers operate on tight margins. They need assurance that the brokers they work with are financially stable and will pay quickly and consistently. Since most carriers don’t have the resources to chase down late payments or fight disputes, they rely on third-party credit data to assess risk in advance.

This is where credit reports come in. A broker’s credit profile gives carriers a snapshot of payment behavior, financial responsibility, and industry reputation. It’s a tool that helps them say "yes" or "no" to accepting a load—and even determines what payment terms they’re willing to offer

Credit agencies like TransCredit, which specialize in the transportation sector, play a key role in providing these insights to carriers, factoring firms, and load boards. A strong credit report not only helps secure carrier trust, it can also reduce the cost of doing business.

Key Elements Carriers Evaluate in a Broker’s Credit Report

1. Transportation Risk Score

   This is a numerical rating that reflects a broker’s financial risk level, based on reported payment history, references, claims, and industry data. Most carriers have internal thresholds for risk scores; if a broker falls below that line, they may decline the load altogether or require prepayment. While companies have different thresholds, generally carriers (and factoring firms) want to see a broker’s credit score at 80 or above to even consider working with them.

2. Days-To-Pay (DTP) Trend

   This metric shows how long it typically takes a broker to pay carriers. A DTP under 30 days is generally favorable. If the trend is rising or has spiked recently, it can raise red flags for cash flow issues or internal operational problems.

3. Reported Payment Experiences

   Carriers look at how many positive and negative references have been reported by other transportation companies. The more current and consistent the data, the better. Lack of recent payment data can suggest inactivity, lack of transparency, or that the broker is too new to evaluate.

4. Claims or Disputes

   Any history of unresolved claims, payment disputes, or deductions will weigh heavily in a carrier’s decision-making. Even a few derogatory entries can cause concern, especially if they appear recent or involve amounts that suggest negligence.

5. Business Longevity and Reporting Activity

   Carriers are more likely to trust brokers with a longer operational history and an active reporting profile. A credit report that shows consistent activity over time gives them a clearer picture of stability and performance.

6. Verified Company Information

   Basic details like MC/DOT number, years in business, and business address should be up-to-date and verifiable. Inconsistencies here can lead carriers to question legitimacy, particularly with rising concerns over broker identity fraud.

How Carriers Use Credit Reports to Make Decisions

When a load becomes available, especially one with tight delivery windows, carriers don’t have hours to vet a broker. They want to check a credit report, scan for red flags, and make a decision fast.

Some carriers use load boards or factoring companies that provide integrated credit tools powered by data providers like TransCredit. Others run their own internal due diligence based on experience and credit ratings. Either way, your credit report becomes your calling card.

Here’s how it plays out in practice:

• Green Light: A solid credit score, low Days-To-Pay, and multiple recent positive references signal a trustworthy partner. The carrier accepts the load and may offer net terms.
• Yellow Light: A few inconsistencies, aging references, or slower payment trends raise concerns. The carrier may request upfront payment, decline to haul, or escalate to management.
• Red Light: A poor score, unresolved claims, or lack of data altogether results in a hard pass. The carrier won’t risk the load, even if the rate is favorable.

Why You Should Care as a Broker

If you're not actively managing your credit profile, you may be losing access to quality carriers without even realizing it. The best carriers—those with newer equipment, reliable service, and experienced drivers—have plenty of options. They won’t gamble on a broker with questionable credit.

What’s more, your credit profile doesn’t just affect whether a carrier accepts a load. It can influence:

• Rates: Carriers may charge more to offset perceived risk.
• Terms: You may be asked to pay upfront rather than get 15- or 30-day terms.
• Reputation: Word spreads fast in the transportation community. A negative credit report can result in fewer inbound calls and reduced capacity options.

For brokers working in today’s competitive market, your credit profile is as important as your sales pitch.

Improving Your Credit Profile: A Strategic Advantage

If your credit report isn’t where it needs to be, there are steps you can take to strengthen it:

1. Submit Carrier References

   If you pay carriers on time, make sure it gets documented. Agencies like TransCredit allow brokers to submit carrier names and contact details so those payment experiences can be verified and added to your report.

2. Resolve Any Outstanding Claims

   Clear up unresolved disputes or derogatory claims. Carriers and shippers will look at how you handle conflict as much as whether it exists.

3. Stay Active and Transparent

   Make sure your company profile is current, and that recent payment data is being reported. Inactivity often appears riskier than a less-than-perfect history.

4. Monitor Your Report Regularly

   Don’t wait for a carrier to tell you there’s a problem. Proactive credit monitoring allows you to catch issues early, submit corrections, and make strategic improvements.

5. Enroll in a Credit Management Program

   Services like those offered by TransCredit give brokers tools to build, monitor, and protect their credit standing. These programs are particularly useful for new brokerages looking to establish credibility quickly or for established brokers trying to maintain a competitive edge.

Conclusion

Your credit report is more than a formality—it’s a vital part of your brokerage's business development and relationship-building strategy. In an industry built on reliability, your credit profile tells carriers whether they can count on you to do what you say, when you say you’ll do it.

The next time a carrier looks you up before accepting a load, make sure what they find reflects your professionalism, payment integrity, and industry reputation. Because in freight, trust travels fast—and a strong credit report helps ensure it travels in your direction.

With the support of transportation-focused credit partners like TransCredit, brokers have the tools they need to put their best foot forward—and keep freight moving smoothly.

For more information, please reach out to us.