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Capacity Building and Education

How A FICO Score is Developed

By utilizing a mathematical formula, credit scores are developed based upon many elements of credit data available in a credit report. According to www.myfico.com, these factors are generally grouped into 5 major categories:

Payment History

  • Account payment information on specific types of accounts (credit cards, retail accounts, installment loans, finance company accounts, mortgage, etc.)
  • Presence of adverse public records (bankruptcy, judgments, suits, liens, wage attachments, etc.), collection items, and/or delinquency (past due items)
  • Severity of delinquency (how long past due)
  • Amount past due on delinquent accounts or collection items
  • Time since (recentness of) past due items (delinquency), adverse public records (if any), or collection items (if any)
  • Number of past due items on file
  • Number of accounts paid as agreed

Amounts Owed

  • Amount owing on accounts
  • Amount owing on specific types of accounts
  • Lack of a specific type of balance, in some cases
  • Number of accounts with balances
  • Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)
  • Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans)

Length of Credit History

  • Time since accounts opened
  • Time since accounts opened, by specific type of account
  • Time since account activity

New Credit

  • Number of recently opened accounts, and proportion of accounts that are recently opened, by type of account
  • Number of recent credit inquiries
  • Time since recent account opening(s), by type of account
  • Time since credit inquiry(s)
  • Re-establishment of positive credit history following past payment problems

Types of Credit Used

  • Number of (presence, prevalence, and recent information on) various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.)

For a snapshot of what criteria determine a FICO score, click here.

It is very important to note that the FICO score is just one of many criteria that a surety company will consider when reviewing a bond submission application.

Responding to the Paradox
with a
Pioneering Solution

Building and Sustaining
Subcontractor Capacity
for the Future

Services

As a minority-owned and certified full-service insurance brokerage and surety bonding firm, The Cayemitte Group is proud to partner with each of its clients to assist in managing corporate risks and position firms for opportunity and growth. TCG’s multidisciplinary approach offers a wide range of strategic, advisory risk management and consulting services, including capital management support. Our unique area of specialty is the development and support of small, veteran, minority and women-owned business enterprises (MWVBEs) via financial and operational capacity-building and education programs to help access capital and open doors to opportunity.

We welcome you to explore how we can be of service to you.

Responding to the Paradox
with a
Pioneering Solution

Building and Sustaining
Subcontractor Capacity
for the Future