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FICO recently announced credit scoring revisions expected to increase the powering power of individual consumers and small business owners nationwide.FICO, the leading provider of credit scoring data in the USA, has revealed major changes to how it tabulates credit scores. As the company rolls out the new scoring system FICO anticipates that literally tens of millions of borrowers will feel a significant benefit.
FICO scores are an essential element in approximately 90% of all lending decisions made in the USA, so the change is an especially positive development for small business owners needing loans. Millions of customers of those small businesses will also now find it easier to secure credit cards, lines of credit, and consumer loans to pay for their purchases.
FICO made the changes because it believes that the new formula and approach gives lenders a more accurate and reliable gauge of borrow risk or credibility. Under the new guidelines, FICO will not penalize borrowers who have already repaid debts that were in collections or those who entered into a repayment agreement that they are upholding in a responsible way. Similarly, unpaid medical bills will not be weighted as heavily when calculating credit scores.
The new calculations should be a windfall for borrowers in the coming months. Under the new system, for example, the FICO scores of many Americans will rise by as much as 100 points. That will open the doors to new borrowing opportunities as well as more affordable rates and friendlier terms. A low credit score can mean paying higher rates or having a loan application completely rejected. Meanwhile, a higher score can invite exclusive perks, including preferential interest rates on small business loans.
“Lenders will begin receiving these updated scores by the end of the year,” explains Meghan Robinson, the CEO of Sunovis Financial, a firm that specializes in quick, affordable, customized loan solutions for small businesses. “That means that right now is an ideal time for anyone wanting a business loan to start shopping around and gathering the documentation required for the application process. We expect to see a surge of activity at Sunovis over the coming weeks and months, and encourage business owners to act now before interest rates trend higher.”
Sunovis Financial is a leading online lender specializing in helping small businesses that have healthy cash flows. Typical customers include health and dental practices, retail stores, restaurant and franchisees, online companies, and more. Sunovis Financial currently serves over 700 industry types and offers a broad range of small business loans and other alternative financing products, such as equipment leasing and accounts receivable factoring.
Their Premier small business product is offered at affordable, business-friendly rates and require no personal guarantee, no collateral, and have no prepayment penalty. Sunovis Financial extends their short-term, renewable business loans of up to $250,000 to qualified applicants within a few business days and has recently added an extended working capital loan to $2,000,000. The company's speed and transparency make it a trusted alternative to banks.
Contact Info:
Name: Meghan Robinson
Email: Send Email
Organization: Sunovis Financial, Inc.
Address: 7500 College Blvd.
Phone: 855 243-7191
Website: http://sunovisfinancial.com/
Release ID: 61504