Did you know that a simple 9-digit number could be the key factor standing between you and your unsecured business loan? While some people understand that their credit history plays a major role, around 70% of individuals are unaware of their creditworthiness or credit rating.
Why Your Credit Score Matters
As experts in loan acquisition, we know the trends in the business and personal loan industry. About 80% of well-known and smaller financial institutions, as well as private lenders, use FICO scores during their approval process. Another method, the VantageScore, is less common but was used over a billion times in 2014 alone. Your credit score essentially acts as your resume when applying for unsecured business funding — it is the single most critical factor in determining your reliability as a borrower.
Credit Reports vs. Credit Scores
Your credit report is essentially a detailed record of your credit accounts, repayment history, and other information about your credit usage. In contrast, your credit score is a single number, typically between 300 and 850. The higher the score, the better your chances of securing a loan. For lenders, your credit rating is much easier to evaluate than reviewing a full credit report.
What’s Considered a Good Score?
Credit scores are calculated by FICO or VantageScore, using data from the three major credit reporting agencies: Equifax, Experian, and TransUnion. Here’s a quick guide:
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 calculated based on the information available at a given time. If new information that significantly affects your credit is added, your score can change. In short, your credit score and rating are crucial when applying for unsecured business or personal loans. Always pull a recent report before submitting your application.
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For more information, contact us at our toll-free number, 1-888-294-2584. We’ve empowered thousands of people! Are you next?
