Credit Score and Business Loans Bad Credit: What Comprises Credit Scores
When you try to apply for any kind of loan such as business loans bad credit, agents from financing companies check your credit score first. Your credit score determines many factors in relation to the kind of loan that you will be getting. Parts of this are the interest rates, the payment terms, and the amount that they are willing to provide you.
However, as normal citizens, it may be hard to determine what affects these scores that we see in our credit records. Having knowledge regarding the process is an important tool to have. So, in that sense, here are the things that contribute to the credit score.
35 percent of your credit score is influenced by your payment history. This is the part which reflects bad credit business loan. This includes loans and other kind of bills. That is why it is important to pay your bills on time.
The next biggest division is the number of accounts available. In fact, it comprises 30 percent. So make sure that you pay what you owe. This may also include the loan that you have.
The duration of your credit score can also contribute 15 percent of your score. The longer your credit stays the same; it will affect the same way as your credit score is being reflected. For example, if your credit score remains high for a very long time, the affectation to your score will also be positive. However, the opposite will also happen if you have a bad credit score.
Fourth is the number of accounts that you opened. Thus, check your credit score frequently. It may take a bad turn some time around.
Lastly is the type of accounts that you have. This composes 10 percent of your total credit score.
Knowledge is the only tool we have against big corporations and government institutions which controls our finances. With the information that you have, you will be able fight for what you know is right and question the remarks that you have in your record.