Finance Credit Score Rubric

Document Overview

This Finance Credit Score Rubric is designed to evaluate the creditworthiness of a business. It provides a systematic approach for assessing various financial factors that contribute to the overall credit score. This rubric is an essential tool for financial analysts, credit officers, and decision-makers in [Your Company Name] to make informed lending or credit decisions.

Rubric Components and Scoring

A. Credit History (35%)

Evaluates the duration and consistency of credit history.

Criteria	Description	Points
Length of Credit History	More Than 10 Years	10
	5-10 Years	7
	2-5 Years	4
	Less Than 2 Years	2
Payment History	No Late Payments	10
	1-2 Late Payments	7
	3-5 Late Payments	4
	More Than 5 Late Payments	1

B. Debt-to-Income Ratio (30%)

Measures the proportion of debt relative to income.

Criteria	Description	Points
Debt-To-Income Ratio	Below 15%	10
	15%-30%	7
	31%-45%	4
	Above 45%	2

C. Credit Utilization (20%)

Assesses the amount of credit used compared to the credit limit.

Criteria	Description	Points
	Below 30%	10
Credit Utilization	30%-50%	7
	51%-70%	4
	Above 70%	1

D. Type of Credit in Use (10%)

Examines the diversity of credit types.

Criteria	Description	Points
	4 or More Types	10
Type of Credit	3 Types	7
	2 Types	4
	1 Type	2

E. Recent Credit Inquiries and New Accounts (5%)

Focuses on the frequency of new credit inquiries and accounts.

Criteria	Description	Points
	0-1	5
Recent Inquiries/Accounts (Past Year)	2-3	3
	4-5	2
	More Than 5	1

Each section of the rubric is designed to collectively assess the overall creditworthiness of a business. Points are allocated based on the specific criteria within each category, contributing to the total credit score.

Scoring Table:

Component	Maximum Points	Score Earned	Percentage of Total Score
Credit History	20	32	35%
Debt-to-Income Ratio	10	[Score]	30%
Credit Utilization	10	[Score]	20%
Type of Credit in Use	10	[Score]	10%
Recent Credit Inquiries	5	[Score]	5%
Total	55	[Score]	100%

Interpretation of Scores:

• 41-55: Excellent Creditworthiness

• 31-40: Good Creditworthiness

• 21-30: Fair Creditworthiness

• 11-20: Marginal Creditworthiness

• 0-10: Poor Creditworthiness