Wrong SIC or NAICS Code on Your Business Credit Report: Why It Matters

Every business credit file has a line describing what your business does. It is usually an industry code, a SIC code, a NAICS code, or both, along with a short description. Most owners never look at it. But that one line can change how a lender or funder sees your file, because many of them judge risk by industry.

If your file lists the wrong industry, you could be judged against businesses that look nothing like yours. Here is what SIC and NAICS codes are, why they matter, and how to fix a mismatch.

SIC and NAICS in plain words

Both answer one question: what does this business mainly do? A plumbing contractor, a restaurant and a trucking company each have their own codes. Your business credit files may list one or both.

Why your industry code matters

Risk groups. Lenders and funders often look at industry when deciding risk. Some industries are seen as steadier and some as riskier. If your code puts you in the wrong group, you could face more questions than you should.

Peer comparisons. Some business credit reports compare your payment habits with other businesses in your industry. If the industry is wrong, the comparison is wrong too.

Lender policies. Some lenders do not work with certain industries at all. A wrong code could put you in a category a lender avoids, even if your actual business fits their program.

Verification. Underwriters compare the industry on your credit file with your application, your website and your Google Business Profile category. A mismatch can trigger a review.

How industry mismatches happen

1. The code was guessed. Bureaus sometimes assign an industry based on your name or outside data. "Sample Supply" might be coded as retail when you are a contractor.
2. Your business changed. You started as one thing and grew into another.
3. You do several things. The file lists a side activity instead of your main one.
4. A vendor or data source got it wrong and the error spread.
5. Your online category does not match. Your Google Business Profile lists one category and your website describes another.

Examples of common industry mismatches

How to fix an industry code mismatch

1. Write one clear sentence describing your main business activity, the way a customer would describe it.
2. Look up the SIC and NAICS codes that best fit that sentence. The official NAICS site has a search tool.
3. Ask each business credit bureau to update your industry classification and description.
4. Match your online presence. Set your Google Business Profile primary category and your website description to the same activity.
5. Use the same description on applications so everything tells one story.

Tips for businesses that do more than one thing

If you have several lines of business, choose the one that brings in most of your revenue as your primary industry. You can describe the others on your website, but the code on your credit file should reflect your main work. If your mix changes over time, review your industry code once a year.

Industry and your Google Business Profile category

Your Google Business Profile has a primary category, such as "Plumber" or "Trucking company." Lenders and data providers sometimes check it to confirm what your business does. If your credit file says one industry, your Google category says another and your website describes a third, the story does not hold together.

Pick the primary category that matches your main activity. Add secondary categories for other services if they fit. Then make sure your website's home page and about page describe the same main work in plain words. When all three agree, verification is easy.

Signs your industry code may be wrong

• Lenders keep asking what your business actually does
• A funder said your industry is outside their program, but your work fits
• Your credit report compares you to businesses unlike yours
• Your file lists a holding company or consulting when you operate a hands-on business
• Your code was never updated after your business changed direction
• Your bank or insurance company described your business differently than you would

If any of these sound familiar, it is worth checking. It only takes a few minutes to look, and getting it corrected can change how a lender reads the rest of your file.

Industry code checklist

• I know the SIC and NAICS codes on each bureau file
• They describe my main business activity
• My Google Business Profile primary category matches
• My website clearly describes the same work
• My applications use the same description
• I review my industry code at least once a year

How Credit Desk checks your industry

On your free review, we compare the industry on your business credit file with what your website, your Google Business Profile and your state filing say you do. If it does not fit, your private review page shows it plainly, for example "Industry listed as Retail. You are a plumbing contractor," with "We correct your industry so you are judged fairly" underneath.

Our team handles the update work, makes sure your online category tells the same story, and then monitors your file. It is one of the quiet fixes that can change how a lender reads everything else.

For more on related problems, see business credit mismatches and business shows closed or inactive.

The bottom line

Your industry code is a label lenders use to sort you. Make sure it is the right label. Get your free business credit review and we will check your industry on every file.