Page 10 - Everything You Need To Know About Personal and Business Credit by Adrean Yancy

Everything You Need To Know About Personal & Business Credit Score
Identi cation: Your personal credit history is connected to your social security
number, while your business credit history is connected to your employer
identi cation number (EIN).

Score Range: A business credit score ranges from 1 to 100. Seventy and above is
considered an excellent business credit score. Personal credit scores range from 300
to 850. Above 750 is considered an excellent score range. 850 is said to be the perfect
score.

Score Access: While there are plenty of sources where you can access personal credit
scores, there are a few options for business credit scores. Dun & Bradstreet (D&B),
Experian, and Equifax are reputable places where you can access your business credit
score, although it comes at a fee.

Scoring System: FICO is the commonly used system for grading personal credit
scores. There is no xed system for scoring your business credit system. Each
business lender develops its system of grading business credit scores. Although some
business lenders use agencies like Dun & Bradstreet to help make lending decisions
because D&B is supposedly one of the biggest and the best credit report services.

FICO, over the years, has developed various models for lenders to use. Here is a list of

the models since inception:
FICO 2
FICO 3
FICO 4

FICO 5
FICO 8
FICO 9
FICO 10 and the latest being FICO 10T, which lenders started using in 2020.
Fun Fact: FICO 8 is the most widely used amongst all FICO models.

Since it has been established that there are di erent scoring models based on

industry, how about we take a look at the snippets of every scoring model of version
by loan type?

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