FACTORS THAT INFLUENCE YOUR CREDIT SCORE
- Your pay history (35%)
- Revolving credit card balances (30%)
- Time in the bureau (15%)
- Recent credit inquires (10%)
- Type of credit (10%)
- Paid off accounts with good payment history
- Low credit card balances
- Limited inquires
- High credit card debt
- Line of credit debt—improperly listed
- Late payments
- Too many inquires
- Judgments and Liens
PERSONAL CREDIT IS IMPORTANT
Things have changed and your personal credit is more important than ever. Because the marketplace moves so fast, many lenders have switched to a “scoring” system to evaluate credit. These “scoring” systems rely heavily on the personal credit history of business owners.
WHAT BANKS AND FINANCE COMPANIES LIKE TO SEE:
- Clean personal credit: A credit report will be reviewed based on the social security numbers of individuals and business owners. Clean credit refers to credit reports without negative information.
- Equal credit highs: Have you borrowed the same amount of money in the past?
- Good : Has the applicant made loan payments on time?
- Company financial statements: (used for business owners) Income statement—Is the company profitable? Are revenues increasing or decreasing? Balance Sheet—Does the company own (assets) more than they owe (liabilities)