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How the New Credit Reporting Changes Impact FICO® Scores

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Credit Reporting Changes

Are you among the 12 million consumers in the U.S. that will see an increase in FICO® scores because of the new credit reporting changes?

For most consumers that will see an increase they can expect as high as a 20-point jump while around 700,000 consumers will see a 40-point jump.

So, what credit reporting changes are taking affect? credit reporting changes

As of July 1, 2017, all three-major consumer credit reporting agencies; Equifax, Transunion and Experian will be removing tax liens and civil judgment data per the Consumer Data Industry Association.

Now the standard for removing these specific items is if the credit reporting agency fails to completely list all the important identifying data that accompany a tax lien or civil judgment. If identifying data like a person’s name, address, Social Security number or date of birth is missing then the tax lien or civil judgment must be removed.

Many liens and judgements do not include all of this identifying data, according to the Journal. The good news is that this new change will apply to new tax lien and civil judgment data reported as well as old ones showing up on credit reports.
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A Brief Guide to Business Line of Credit Requirements

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Business Line of Credit Requirements

In today’s post, I want to revisit a widely-discussed topic; business lines of credit. If you want to know what the requirements are to qualify, and the standards imposed for each type of business line of credit then keep on reading. business line of credit requirements

Given all the business line of credit requirements and options that are out there, it’s important that you take some time to determine what your goals are, what the line of credit will be used for, and which options are available to you based on the requirements listed below.

The bottom line is making sure you pre-qualify for the right type of business line of credit at the right time can greatly impact your funding success, so let’s go over the requirements in detail:
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3 Ways Small Business Compliance Impacts Business Credit Ability

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Small Business Compliance

Do you know the legal aspects of starting and running a small business? small business compliance

Compliance as defined, is simple, it’s to make sure your business follows all the rules and regulations. In today’s post, we’ll cover the three areas of compliance and how it impacts your ability to acquire credit for your business.

What does it mean to be in compliance?

Small business compliance can be broken down into three main areas; corporate compliance, regulatory compliance and lender compliance. Each of these areas focus on making sure that your business follows all the rules to reduce risk, avoid penalties and fines, avoid litigation, provide safety and security, protect employees, protect the corporate veil, and meet funding ability.
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What is a Personal Guarantee? A Must Read.

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Have you been asked to provide a personal guarantee? what is a personal guarantee

In today’s post let’s clear up the confusion surrounding the PG. After reading this post you’ll know what is a personal guarantee, what it’s not, ways to get around supplying a PG and why in some cases you can’t avoid it.

What is a personal guarantee?

In a nutshell, a personal guarantee is a written promise from a business owner guaranteeing that payment will be made in the event that the business fails to pay. Whether the business enters into a lease, applies for a business loan or line of credit, you’ll find that many creditors will require a personal guarantee to secure financing especially if you’re a small business.
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How Long Do Credit Inquiries Stay on Your Credit Report?

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How Long Do Credit Inquiries Stay on Credit Report

Not too long ago I wrote a post about how credit card utilization ratios impact your ability to qualify for business credit lines. In today’s post we are going to address credit inquiries, how long they stay on your credit reports, how they impact your ability to obtain new credit and more importantly how to remove them. how long do credit inquiries stay on credit report

As you know, inquiries happen when someone checks your credit. Anytime you authorize a lender, bank or other credit grantor to review your credit it triggers a “hard “inquiry on your personal credit report.

Now keep in mind, a “hard inquiry will only show up on the credit report that the lender or credit grantor pulls from. For example, if you apply for a credit card and the card issuer pulls from Transunion then that “hard” inquiry will only show on your Transunion report. Sometimes a credit grantor may check your credit from all three major credit reporting agencies resulting in a “hard” inquiry showing up on all three of your reports.
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