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What Makes Up Entrepreneur’s Credit Score

What Makes Up Entrepreneur’s Credit Score can be found in a few places. This website gives you a simple, nonbiased, explanation of your credit score formula is comprised of. I thought that as entrepreneur’s we need to know as much as possible about our money and our credit. Because that’s what we are in business for right? To build our bank accounts and get and keep good credit so that we can make more money faster. Okay well, that’s why I am in business.

If I know what makes up my credit score I can make adjustments to how I do my business and make things work in my favor. As a home based business owner, you have to maintain control over as much as possible in the beginning. This will help you!

35% — Payment History

Takes into consideration the number of accounts you have; if you have any collections activities or negative public records, like judgments, lawsuits, or bankruptcies; if you have any delinquent accounts: the total number of past due items; how long past due; how long since you made a late payment.

Credit Score

30% — Amounts You Owe

Takes into the computation how much you owe on your account and the types of accounts you have with balances; how much of your credit lines you’ve used; the amounts you still owe vs the original balances; the number of zero balance accounts.


15% — Length of Your Credit History

This is the total length of time tracked by your credit report; the length of time since your credit accounts was opened; the time that’s passed since the last activity. The longer you show good credit history, the better your score.


10% — Types of Credit Used

This takes into consideration the total number of accounts you have and the types of accounts (credit cards, mortgage, car, etc.). A mixture of accounts usually generates better scores than having a bunch of different credit cards. It is such an irony-they practically throw credit cards at us, yet the credit score goes down if you have too many credit cards.

10% — New Credit

This is the number of accounts you recently opened; the proportion of the new account to total accounts; the number of recent credit inquiries; the time that has passed since recent inquiries or newly-opened accounts; if you’ve re-established a positive credit history after encountering payment problems.


I think it is worth while mentioning that too many people play the blame game with their credit and their money. That is why they don’t have any money and they have bad credit. As entrepreneurs who are running a home based business, we have to step up our game and take control of our banking and our credit. The two are our life line in business. We have to become students of both of them if we wish to be taken seriously by other entrepreneurs, our families, friends and mostly ourselves.

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