When it comes to getting a loan so that you can get the funds you need to buy a home, a vehicle, or some other important item, you’ll need to be sure that your credit score is up to snuff. Without a good credit rating, you won’t be able to get a credit card, or be considered as a dependable prospect for lending money to.
If you are working in the credit industry, there are a number of essential tools that everyone in your business should be using to ensure that you are making good decisions concerning the people you approve for a loan. Here is a quick list of the 5 tools everyone in the credit industry should be using.
1. Credit Alert Notifications
Your credit score is subject to many factors that can cause it to rise or fall in a very short period of time. If you have defaulted on a loan or payment, this can certainly cause your score to fall. Meanwhile, if you are in charge of overseeing loans to private individuals and companies, you will certainly want to do everything you can to ensure that you are not giving away the store when it comes to approving new applicants.
For this reason, many credit card companies provide their customers with free credit alert notifications that immediately inform them when a change in their ratings, whether for better or worse, has taken place. This makes for an excellent way to keep customers well aware of developments concerning their credit rating that may need to be addressed in a hurry.
2. The SBSS Scoring Service From FICO
FICO has announced a new credit scoring model known as the Small Business Scoring Service (SBSS). This system has been specially designed in order to quickly assess the needs of small business owners when it comes to securing a line of credit that is applicable to their needs.
Of course, it’s also been specially formulated to protect the bank or lender from risking too much on a potentially dangerous small business account. The SBSS has proven remarkably effective so far, and is likely to quickly become the gold standard for assessing risk and assigning due credit to small businesses all over the world.
3. Instant Credit Monitoring Tools
The world of business is very much a movable feast. Businesses that are on top of the world today may suddenly fail in a matter of weeks, leading to a major changing of the guard in their particular industry. One of the most logical and revealing methods of monitoring the health of a business is to subject it to regular instant credit checks.
If you are employed in the credit industry, you can use various programs by Experian, Equifax, and others to run quick check ups on the credit files of all of the businesses that you are charge of lending to, or supervising the credit accounts of. These excellent new programs, such as Experian Business and Equifax Small Business, can show you the entire credit history of a small business and give you a reliable indicator of their present health and future trajectory.
4. Credit Management Tools
Some of the most important tools that you will need to make use of if you are employed by the credit industry are credit management tools. Banks, lenders, and credit card companies regularly refer to information compiled by Dun and Bradstreet in order to arrive at a reliable estimation of a company’s true credit status. The information contained in a company’s Dun and Bradstreet report can easily influence the ease with which it qualifies for future loans, or is turned down when it attempts to procure them.
5. Credit Report Analysis Software
One of the most common tools that the credit industry uses is the credit report analyzer. This is the tool that most often determines whether a loan agency, bank, or credit card company will take you seriously as a customer. All three of your personal FICO scores, as well as your credit reports from Equifax, Transunion and Experian, will be checked using the latest credit analysis software.
Your credit report affects the entire manner in which lenders view the viability of your business. If your credit score dips below a certain point, it will be extremely difficult to secure funding for the goods and services you need in order to stay in business. For this reason, it’s very important that you know exactly how your credit score is faring on a daily basis.
Get Your Credit Report Today
It’s an excellent idea to obtain your free credit report before applying for a loan or credit card so that you will be aware of any errors or items that you wish to dispute before you submit to a credit check. This way, you can take care of any outstanding charges and clear up any glitches that are causing your credit rating to suffer. The sooner you take care of this vital issue, the sooner you can get the loan you need.