The FICO score of your business can make a big difference in interest payments on loans. That’s why it’s a good idea to maintain as high of a score as possible, so that when loans are needed, you won’t have to face high fees.
Here are more details about FICO scores and how they can affect your business:
Your financial condition is rated in various ways, FICO being the most commonly used score by lenders. There are about 50 different scores lenders use to measure creditworthiness. FAKO is a different metric that tracks how a person’s credit is progressing. VantageScore is a monthly score that does not require as much credit history. It is weighted more by mortgage issues and less by how much debt is in collections.
How a FICO Score Is Calculated
FICO scores are determined largely by a combination of your payment history and amounts owed. Together, these factors make up 65% of scoring weight. Other factors include credit length, how much new credit you have and debt issues. Your score is constantly being updated, so it’s best to check it every three or four months. New scoring methods are being tested by FICO for people with marginal credit history. As a result, millions more consumers can get loans that at one time they might not been able to obtain.
Getting Your FICO Score
The easiest and quickest way to get your latest FICO score is by purchasing it from myFICO.com. There are also several sites that offer your FICO score for free, which usually involves joining a promotion. Studies have shown, however, there is really no free way to get your credit score without signing up for an account, such as the free FICO Score Open Access Program.