Free Finance Credit Score Rubric Template

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