The main system in place for determining credit scores is called FICO, an acronym for Fair Isaac Credit Organization, which is the company that owns this formula.
The three credit bureaus, Equifax, TransUnion, and Experian all use this system to establish credit scores, but they each market it under a different name. Equifax markets their product as Pinnacle; Experian as the FICO Advance...
The fate of consumers and small business owner's finances is wrapped in their ability to access credit and capital. This is increasingly the case, but still few borrowers are aware of exactly how their credit scores are determined. To further complicate what may already be a confusing picture for many, there is a new competitor on the market that, if it is successful in the market, will give...
Business owners must consider how these changes could effect their business scores, because of the major impact it could have on their ability to take out loans, finance projects, or pay employees. Consider your options and discuss them with a financial adviser to figure out what is the best plan for you.
How will these changes impact consumers?
When consumers who are considered...
The success or failure of a small business could very well rest on the business owners' credit scores, especially with the failure of most businesses in the first six months of the business. It is important that business owners are aware of FICO's many laws and formulas used to establish credit for their customers. This will help business owners make informed decisions about how they manage...
Small businesses are extremely important to our culture and our economy. In fact, small businesses make up a very significant portion of our economy. They thrive on local business and give life to the monetary heartbeat of America. The financial success of America's small businesses lies heavily on their ability to attain credit in order to maintain their business.
Recently, FICO has...
It is shocking that nearly all small-businesses fail in their first months or years of business. One of the primary flaws of the way people run their businesses is being lax when it comes to book keeping and cash flows. It is important for business owners to follow some simple but imperative steps in order to go maintain the success of your business.
One major flaw for new business owners...
Credit scores have long been determined by a nearly universal formula known as the FICO model. This model, owned by Fair Isaac, is used by over 80% of the major banks in the US, and is the familiar 300-850 credit ranking that consumers are familiar with.
The credit bureaus have put out their own credit scoring formula to rival the FICO formula. This newer method of scoring is known as...
Many businesses fail because they are unable to access the capital that they need to survive, particularly in the first five years of establishment when banks view them as riskier because of their age. This is also when the vast majority of businesses fail. By being aware of the factors that are weighed before lending money, you can better prepare your business to successfully attain the...
Small businesses are extremely important to our culture and our economy. In fact, small businesses make up a very significant portion of our economy. The financial success of America's small businesses lies heavily on their ability to attain credit in order to maintain their business. It is shocking that nearly all small-businesses fail in their first months or years of business. One of the...
Many business owners are shocked to find that their personal finances have such a large impact on their business's ability to access credit. Revolving credit, in particular, can have an unexpected affect on any individual's ability to access new lines of credit or business credit cards for their business. In fact, your individual FICO score can factor up to fifty percent into a lender's...
