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Why America’s Peak Credit Score is Good for Business

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Did you know the average credit score (FICO score) in the USA as of 2021 is now up to 714? However with high inflation, it is likely there will be consumers falling behind on credit card repayments.

Many other countries operate under similar credit score systems. One example is Norway.

However, having suffered at the hands of FICO’s unforgiving points system for so many years, it seems 
 America’s credit rating is up. This can only mean good news for
anyone looking to expand their business.

Current U.S. credit rating context

According to Bloomberg, around 200 million U.S. consumers 
 have 
a registered FICO credit score and just under three million, which is
around 1.4% of the population, have managed to secure a perfect 850.
Essentially, these statistics indicate that America could finally
be approaching what might arguably be defined as a peak credit score. What are the benefits for those with a small-to-medium-sized business to manage if this is the case? Well, quite a few, actually…

Credit cards and loan approval

Let’s be nice and clear from the start. Even with an 850 credit score, you
 shouldn’t assume that any credit card or loan application will be 
automatically accepted. Most lenders still consider other factors 
, including income and current debt obligations.

However, a high 
credit rating is preferred by lenders, and it will open doors for you so you can invest in your business.

The power of negotiation

One of the most crippling aspects of managing a business can be the
 interest rates on credit cards and loans. However, suppose your credit rating
 happens to be following the nation’s present trend. In that case, you’ll likely be
able to better negotiate and bring those high-interest rates down to an
acceptable level. You’re also likely to benefit from a greater quantity of
offers suddenly made open to you, which are hardly ever
made available to those with poor credit ratings.

Higher limits

On a similar note, banks and money lenders tend to keep a tight rein on
 the amount of money they’re willing to lend people with low credit scores.
Any business expansion that will positively impact your reputation, staff morale, and profit will need a
helpful push from a large sum of capital. Suppose you’ve been feeling
frustrated and unable to take your company to the heights you’d like to in
recent years. In that case, it might be worth testing your current credit score to see
if you, like many Americans at present, are in the right kind of position
to really push forward with significant developments.

Cheaper car insurance

Some businesses would really benefit from cheaper car insurance. Suppose you 
offer your employees company cars or regularly deliver products to
customers. In that case, a higher credit score means that insurance companies will likely offer you less to insure all vehicles to the required standard. Indeed,
you may want to revise your options if you currently send your products to customers by outsourcing to an
external delivery company. Cheaper
car insurance options could end up making the management of your own fleet
 of vehicles  the
 more viable and reliable option.

While the benefits mentioned are by no means exhaustive, they indeed
begin to illustrate the extent to which business expansion poses less of a
problem to those with good credit scores. If America’s current trend
continues and credit score remains high across the country, we might
experience a real boom in financial and creative business success as we
move into 2018. So, don’t get left behind. Start investigating and see
what kind of options are perhaps already available to you. 2018 could be
the year when your business really soars.