I have a specific and general question re Credit Ratings in the USA.
General: what is the formula used to determine credit worthiness? I’m sure that this is relatively complicated, so a link to someplace that explains it would be fine and welcome.
Specific: if I file a claim against Unemployment Insurance, does it adversely affect my credit rating? That is, is it any worse than not showing a steady income stream? As background, I’m looking to start one or more new businesses, and the unemployment money would help to stretch my savings further until I generate some receivables. If I do this will it decrease the likeliness of my being approved for bank loans for the new business?
Little help here? Please?
Sometimes I think I must have the highest GQ unresponded to ratio on the Boards. Are my questions too hard or too boring?
Credit scores: was too complicated. Good start, visit http://www.fairisaac.com/
Answer to claim question: No, but when anyone reviews your credit worthinesss, while this specific info is not on a credit report, a credit report is sometimes part of the decision, not the entire set of criteria in and of itself.
For small loans, it’s is 99.9% credit report. Think of cars, where you can borrow 30-40k based on credit alone.
For individual land business loans with no collatoral, then the credit report and proof of employment are reviewed, along with bank statements and past earnings, including tax statements.
Oops! Correct link: http://www.myfico.com/
About credit worthiness/ratings/etc
Very complicated. Fair, Isacc is a company which provides alot of ledning decision tools to companies/lenders. Fairly complex stuff. Everything from ‘fraud predictor’ tools, to ‘bankruptcy’ risk analyzers, to various levels and detail of credit scoring and tiering.
Again, some could be all about your credit report, but your type of loan will probably call for a review of the things I mentione in my first post.
Thanks, Philster, I’ll give that site a look. And I know that there are more things than just my credit score that they’ll look at, it’s just that’s the one this affects right now.