Top10Financing.com
info@top10financing.com

Got Questions about Financing?

Here's the best advice for small business owners, entrepreneurs and real estate investors.

Yes, Sign Me Up Now!!!
  • HOME
  • Our Blog
  • Starting a Business?
  • 6 Steps to Business Financing
  • Step 1: Take a Personal Inventory
  • Step 2: Know Your Credit Scores
    • Credit Repair
  • Step 3: Build Business Credit
  • Step 4: Prepare a Business Plan
    • Business Plans
  • Step 5: Identify the Financing Options
  • Step 6: Make the Pitch to the Right Financing Source
  • Business Financing Consultations
  • Take the Business Financing Quiz!!

What exactly are FICO scores and how are they calculated?

9/18/2011

0 Comments

 
Credit scores, also known as “FICO scores” in the US and Canada, are calculated using software developed by a company called Fair Isaac Corporation (FICO).  There are 3 credit reporting agencies –  Experian, Equifax, and TransUnion – that use the FICO scoring system.  Each credit reporting company will have a slightly different score for the same person because not all creditors or  lenders report to all three reporting agencies and they might record the same information in different ways.  So, you really need to know the scores from all three credit  bureaus.  Credit scores range from 300 to 850, where the higher the number reflects a better credit rating.  Credit scores are calculated based on five categories of information.  The most important category is a person’s payment history (35%). The next  most important is the Amount owed to all creditors (30%), the length of credit history (15%), amount of new credit (10%), and the type of credit used
(10%).  Other things that will impact a persons credit scores are inquiries, civil judgments, tax liens,
bankruptcies, collection accounts, foreclosures, repossessions, charge offs, and closed accounts.  It is important to know that your credit report does not contain information related to income, checking or saving accounts, marital status, race, religion, medical history, political affiliation.

0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Top10Financing News -Here is our blog:

    Archives

    February 2016
    January 2016
    December 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    September 2014
    July 2014
    October 2013
    September 2013
    July 2013
    May 2013
    March 2013
    December 2012
    November 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011


    Affiliate Disclosure: In some posts we may recommend products or services for which we receive compensation.  However, we only recommend products that we've either personally checked out or that come from people we know and trust. When you purchase something from a link in this blog, we may receive compensation, but the price to you is the same regardless of whether we are compensated.  Our first priority is to provide information and resources to help you  in your endeavors  (affiliate or otherwise).  Affiliate compensation helps to offset the costs associated with maintaining a high quality blog.
Affiliate Disclosure: On this website we may recommend products or services for which we receive compensation.  However, we only recommend products or services that we've either personally checked out or that come from people we know and trust. When you purchase something from a link, we may receive compensation, but the price to you is the same regardless of whether we are compensated.  Our first priority is to provide information and resources  (affiliate or otherwise) to help you in your business endeavors.  Affiliate compensation helps to offset the costs associated with delivering high quality information to you.
                              Copyright © 2011-2016, Asset Financing Group, Inc., All Rights Reserved
Photo used under Creative Commons from frankieleon