Small Business Credit

 It is still difficult for a small business to get a line of credit or loan these days but it can be done. If you go to http://www.sba.gov/ you will see the Small Business Administration website, click on the Recovery Act button and it will take you to the overview of the American Recovery and Reinvestment Act of 2009. There are several programs for small businesses I advise you to take a look to see if you can qualify for one.

One of the requirements for any of the loan programs is that you have good credit. While the definition of "good" varies it is generally said that a score of 690 or better is needed. However a change has been occurring in the credit scoring system, you should visit http://www.vantagescore.com/ for more details. The three main credit rating agencies have created a new scoring system using their combined data information. However they will market it separately. The new scores range from 501-990. They will predict the likelihood of future serious delinquencies (90 days late or greater) on any type of account. The score is based on a 24 month review of the consumer's credit file. All three credit agencies can access this score. What is not known is if everyone's credit score will be adjusted to this new range, and if it is adjusted by how much? Please send me your views.

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