Did you know that a simple 9 digit number could be standing between you and your unsecured business loan? While some people are aware that their credit history a massive 70% of individuals are unaware of their credit worthiness or credit rating.
Why It’s Important
As experts in loan acquisition, we understand what’s trending in the business and personal loan industry. Approximately 80 percent of some of the most renowned and smaller financial institutions and private lenders use FICO scores in their evaluation for the approval process.
Another is the VantageScore. Not the first choice for lenders, however, this type of credit scoring method was utilized over a billion times in 2014 alone.
In a way, your credit score acts as your resume when you apply for unsecured business funding. It is the single most essential factor that determines your worthiness as a borrower.
The Difference between Credit Reports and Credit Score
Typically, your credit report is somewhat a laundry list of your credit accounts, credit repayment history, and other information pertaining to your credit acquirement in the past. On the other hand, your credit score is a specific number, typically between 300 and 850.
The higher the number, the better chances you have of securing a loan. For financial resources looking to offer funds, your credit rating is much easier to manage than credit reports.
What’s A Great Score?
Your credit score is generated by FICO or VantageScore using the credit information from the three major credit reporting agencies, namely, Equifax, Experian and TransUnion. Here is a guide on how your scores can be transformed into ratings:
Excellent Credit: 750 – 850
Good Credit: 680-749
Fair Credit: 601-679
Poor Credit: 501-600
Bad Credit: below 500
Do Your Credit Scores Change Often?
Scores are developed and calculated based on the information that is available at the time. Therefore, if there is additional information added that significantly affects your score, then, yes, it will change, after factoring in the new information.
To wrap it up, your credit score and rating information is vital when you’re applying for unsecured business or personal loans. Make sure you pull out a recent report when applying for your loan!
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