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Why A High Fico Score Is Important When Applying For A Small Business Loan.

One of the most important tasks small businesses have is building their personal and business scores. Many banks and lenders first look at the personal fico score and then look at the business credit score as well as how long the company has been in business. They also look at cash flow, meaning is the business operating at a loss? Or are they making money? Business owners are too quick to fill out an application and apply for a business loan, leaving them with very low odds of getting approved. Having a good personal fico score shows the bank your creditworthiness. Having strong credit opens up the door to many different offers, with better rates and terms

How Fico Score Started And How Is It Calculated

Banks and other lenders started The Fico Score in 1989. They used this system to see how a borrower’s past history is on paying their financial obligations. A Fico Score is based on data that is collected by the 3 credit bureaus Equifax, Experian, And Transunion. They report and show data, as well as rank the consumer’s credit from 300 to 850. The formula they pretty much all follow is:

Payment History– 30%– Ontime and late payments, charge offs, liens, judgments, etc

Amounts Owed 25%– Debt to credit limit ratio,

The number and outstanding balances with the amounts owed and paid

Length Of Credit History- 20% — Starting from when credit was first issued to today. They use data from this period of time to establish a fico score which will prove one’s creditworthiness based on past performances.

Types Of Credit Used- 10%– Mortgage Payments, Auto Payments, Line Of Credit, etc

New Credit- 10%– Applying for credit cards, revolving loans puts inquiries on credit and may lower fico score.

All this data that is collected and translates to the making of a fico score which is a part of one’s personal credit file maintained by the 3 major credit bureaus. The file also consists of one’s personal information such as name, address, date of birth and sometimes employment information. The report will have information supplied by one’s creditors. Judgments, Bankruptcy, and additional credit requests are stated. All of these actions weigh heavily in a persons fico score.

What If Any Of The Information Is Wrong On Credit Report?

Everyone has a right to dispute wrong information stated in their credit report. They can write a letter to all 3 credit bureaus Equifax, Experian, Transunion. Or if they don’t feel comfortable doing this, then they can reach out to a credit repair agency for help.

The Different Fico Scores That Classify Your Credit

Below 575– Bad Credit- High Risk, High-Interest Rates
575-620 – Poor Credit- High Risk. Few Options, High-Interest Rates
620-680- Good Credit – Light Risk– More Options- Decent Rates
680-720 – Very Good-Low Risk–More Options-Good Rates
720-800 Excellent- No Risk– Very Good Options And Rates
800++ The Best- Lenders Will Fight For Your Business

Tips To Maximize Your Credit Score

Use Credit Cards And Keep Under 16% of Available Credit
Check Credit Reports Regularly — Report Any Errors
Make Payments Ontime- One Late Payment Can Lower Scores

Conclusion

One’s personal credit score (fico) is the first thing that any lender, personal, business, auto, mortgage will look at. So by having a fico score of 680 and above one will likely increase their odds of getting approved and funded with better terms and rates. And even if you are not in the market for a loan right now, consider this that at least you will be ready and lenders can see how long your credit has been good. Also keep in mind having a good fico score is important in getting a job or even renting an apartment or home. Take time out of your busy schedule and put time into looking at your credit file. Dispute all errors with the 3 credit bureaus, or seek advice and help from a reputable credit repair agency.

Treasure Coast Business Loans Inc Proudly Announces Credit Repair Services

We are partnered up with one of the best credit repair companies in the country! We have been using them for many years to help our clients get better fico scores so that they can qualify for a business loan.
Heres Our Deal! Send Us An Email At treasurecoastloans@gmail.com Include Your Full Name Email and Phone Number. Please Put Credit Fix In Subject Line. One of The Credit Experts Will Reach Out To You Very Shortly For A Free No Obligation Consultation! You Can Ask Questions, and They Will Explain How Their Services Work. If You SignUp And Once Your Credit Is Ready, Apply For a Business Loan With US! If And Only, If It’s Funded By Us We Will Send You An American Express Gift Card For 300.00
If you are not a business owner and not looking for a loan, you can use our credit services, but will not be eligible for the 300.00 gift card offer.





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203 N.W. Zanzibar Place
Port St Lucie, FL 34986
800-561-9086
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