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Credit scoring seems like it should be a straightforward concept. All of the financial information provided to consumers, however, is confusing. You may see multiple scores and various criteria used by banks, credit card companies, and other lenders. What is your real credit score? Read on for an overview of credit scores and what they mean for the general population.Scoring methods all generally use statistics and analysis to determine consumer credit payments over time. They are all used by lender and financial institutions to facilitate providing credit, loans, and mortgages to individuals. Payment history, overall debt, number of cards, and other information is used in most scoring models.The History of Credit ScoresUntil the 1970s credit scoring systems were not the prescribed way to determine credit viability. Financial institutions used human metrics such as a personal relationship with the client, body language, and initial conversations. The financiers would often share information across the industry when they had mutual clients. Results were often misleading and financial institutions themselves suffered from loss associated with unreliable consumers.Equifax, now a big 3 credit bureau, paved the way for future credit information collection as the first company operating with the goal of collecting consumer data. TransUnion followed Equifax in the 1960s. Data collection in the 1960s included irrelevant information about personal habits, vices, and opinions. The level of misinformation and distrust by the general population eventually led to the passing of the Fair Credit Reporting Act in 1970, which regulates data collection and circulation of consumer credit information.FICO (Fair Isaac Corporation) is known as the universal credit scoring method. The three main credit bureaus in the US all use FICO scores in their credit reporting documents. More than 80 countries around the world also use FICO information to improve business processes. FICO helps consumers manage credit health around the world through their analytics and reporting information.The company was founded in 1956 and now 95% of the United States’ largest financial institutions utilize FICO information in day-to-day business. One hundred billion FICO credit scores have been sold since the company began scoring.FICO began sharing credit information with businesses in the late 1950s when the company began. In 1987 the FICO scores of individuals became more widely available to lending professionals. It wasn’t until 2003, with the passing of the Fair and Accurate Credit Transactions Act, that credit information was made freely available to consumers once a year.VantageScore began in 2006 as a collaboration between the three main credit reporting bureaus. Experian, TransUnion, and Equifax developed VantageScore to improve their techniques for analyzing data. The company focuses on accurately providing consumer information in the context of relevant economic data. They are dedicated to finding a solution and standardizing certain consumer data sets across the three bureaus.The system has been adopted by large financial institutions and lenders as an alternative to FICO. Roughly 10% of the total market uses VantageScore currently. VantageScore “credit report card” is available to consumers for free as of 2013. The consumer market will likely see an increase in the use of VantageScore as a direct competitor of FICO.Why, if all of this information is regulated and shared throughout the industry, do we receive different scores from each credit reporting agency? The truth is that all of the major credit bureaus – Equifax, TransUnion, and Experian – look at credit information differently. The companies receive your relevant financial information at different times. If a credit card statement hasn’t been paid off when the data is sent to a bureau, your credit score might be impacted by that information.Financial institutions actually rely on numerous scores to determine their individual criteria for providing credit. FICO, itself, offers more than 50 unique scores. Consumers who receive credit reports only see a selection of information that is determined to be most helpful. These consumer-directed scores are often completely different from the numbers a financial institution will evaluate. They are strictly educational in nature and used to provide consumers with a sense of overall credit worthiness.Individual companies may also implement their own scoring equations. Ultimately, there may be different scores from FICO, VantageScore, Experian, Equifax, TransUnion, and independent companies. So many numbers floating around makes it difficult for the average consumer to understand which numbers to evaluate for personal finances.Where to LookThose looking to get a sense of overall financial standing can look at any of the scoring methods for a reasonable picture. If you are trying to determine how your score will appear to another party, a lender or bank, you may have more difficulty finding accurate information. Ask your lender which scoring method was used for your situation to determine where to find specific numbers associated with a loan or financial inquiry.Your true, accurate, real credit score will not be found by evaluating one score. The formulas guiding credit scoring vary slightly, giving more or less weight to factors like credit history or outstanding debt. Most of us do not need a 100% accurate credit score. Personal finances and a general understanding of your situation can be attained through any of the major credit scoring companies.More informationIf the credit-scoring methodology is still confusing to you, you’re not alone. The process is full of nuances and statistics that those who are not in the field of finance often find hard to comprehend. Contact credit services and counselors for more information about your unique situation. Consumers sometimes need help determining methods of improving credit scores, as well as contesting inaccurate information that can drive a score down across all scoring models.Look at credit reports from each of the 3 bureaus at least once a year. Any information that is inaccurate or misleading may need to be addressed by you, the consumer, or a credit repair specialist. Finding a company that specializes in credit law will provide you with peace of mind that your credit score is in the hands of individuals who know what can legally be done to improve your credit score.

Is it actually possible to get ‘ creative ‘ when considering a franchise finance business loan for you new Canadian role as an entrepreneur in franchise financing? There are some tried and trusted rules we use in the franchise lending area, but a little creativity has never hurt anyone we believe!If you haven’t considered how to finance your new business in the franchise industry then we feel it’s probably a little too late in some ways, as your ability to finance your business properly we think has a lot to do with the ultimate growth and success of your business. There are very focused lending sources for the franchise area of financing in Canada – the trick of course is to know what they are and more importantly how you can navigate the ‘ maze ‘ successfully.The reality is that if you have some industry experience in your new business and a proper finance plan you have a much better chance of financing your business properly.So, who can you turn to in terms of creativity and resources for franchise financing? Clients are amazed when we tell them the most creative partner in franchise financing in Canada is none other than the Canadian government!How could that possibly be? Simply because a program guaranteed by the government and administered by the banks could not be any more creative than this.The program is the ‘BIL’ loan program, and it provides you with financing up to 350k for your new business. Are the terms onerous? Hardly! The essence of the program is a 5-7 year term loan, with great rates, limited personal guarantees, and some other elements of flexibility. If that isn’t creative then we don’t know what is!Naturally all the creativity in a business loan of that type for your franchise finance scenario should not be reliant on just one lender – the other lender is someone you know very well. Yourself. That’s simply because when you look at the total financing of a franchise in Canada the two components are simply debt (the funds you have borrowed) and the equity, or money you have put in yourself. These equity funds, i.e. your commitment to the business, typical come from savings, the proverbial ‘ friends and family ‘ support, and investments or collateral that you have available.Getting back to our key subject of creativity, our above noted BIL loan program only covers certain aspects of a franchise finance scenario. You can augment that loan with flexible equipment financing that has low down payments and extended amortization terms, as well as, in some cases, a working capital term loan.We never forget to remind clients that the franchise financing plan is a two stage process, acquiring the business, and making sure they have some capital and funding to operate and grow their new business.In summary, you can be creative when you are looking for info on how Canadian franchise finance works. You need knowledge on what funding sources are available that are specialized to the franchise industry, and assistance in executing a proper financial plan. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing that creativity!

According to the 2012 report, Global Trends 2030: Alternative Worlds, published the US National Intelligence Council, four technology arenas will shape global economic, social and military developments by 2030. They are information technologies, automation and manufacturing technologies, resource technologies, and health technologies.Information technologiesThree technological developments with an IT focus have the power to change the way we will live, do business and protect ourselves before 2030.1. Solutions for storage and processing large quantities of data, including “big data”, will provide increased opportunities for governments and commercial organizations to “know” their customers better. The technology is here but customers may object to collection of so much data. In any event, these solutions will likely herald a coming economic boom in North America.2. Social networking technologies help individual users to form online social networks with other users. They are becoming part of the fabric of online existence, as leading services integrate social functions into everything else an individual might do online. Social networks enable useful as well as dangerous communications across diverse user groups and geopolitical boundaries.3. Smart cities are urban environments that leverage information technology-based solutions to maximize citizens’ economic productivity and quality of life while minimizing resources consumption and environmental degradation.Automation and manufacturing technologiesAs manufacturing has gone global in the last two decades, a global ecosystem of manufacturers, suppliers, and logistics companies has formed. New manufacturing and automation technologies have the potential to change work patterns in both the developed and developing worlds.1. Robotics is today in use in a range of civil and military applications. Over 1.2 million industrial robots are already in daily operations round the world and there are increasing applications for non-industrial robots. The US military has thousands of robots in battlefields, home robots vacuum homes and cut lawns, and hospital robots patrol corridors and distribute supplies. Their use will increase in the coming years, and with enhanced cognitive capabilities, robotics could be hugely disruptive to the current global supply chain system and the traditional job allocations along supply chains.2. 3D printing (additive manufacturing) technologies allow a machine to build an object by adding one layer of material at a time. 3D printing is already in use to make models from plastics in sectors such as consumers products and the automobile and aerospace industries. By 2030, 3D printing could replace some conventional mass production, particularly for short production runs or where mass customization has high value.3. Autonomous vehicles are mostly in use today in the military and for specific tasks e.g. in the mining industry. By 2030, autonomous vehicles could transform military operations, conflict resolution, transportation and geo-prospecting, while simultaneously presenting novel security risks that could be difficult to address. At the consumer level, Google has been testing for the past few years a driverless car.Resource technologiesTechnological advances will be required to accommodate increasing demand for resources owing to global population growth and economic advances in today’s underdeveloped countries. Such advances can affect the food, water and energy nexus by improving agricultural productivity through a broad range of technologies including precision farming and genetically modified crops for food and fuel. New resource technologies can also enhance water management through desalination and irrigation efficiency; and increase the availability of energy through enhanced oil and gas extraction and alternative energy sources such as solar and wind power, and bio-fuels. Widespread communication technologies will make the potential effect of these technologies on the environment, climate and health well known to the increasingly educated populations.Health technologiesTwo sets of health technologies are highlighted below.1. Disease management will become more effective, more personalized and less costly through such new enabling technologies as diagnostic and pathogen-detection devices. For example, molecular diagnostic devices will provide rapid means of testing for both genetic and pathogenic diseases during surgeries. Readily available genetic testing will hasten disease diagnosis and help physicians decide on the optimal treatment for each patient. Advances in regenerative medicine almost certainly will parallel these developments in diagnostic and treatment protocols. Replacement organs such as kidneys and livers could be developed by 2030. These new disease management technologies will increase the longevity and quality of life of the world’s ageing populations.2. Human augmentation technologies, ranging from implants and prosthetic and powered exoskeleton to brains enhancements, could allow civilian and military people to work more effectively, and in environments that were previously inaccessible. Elderly people may benefit from powered exoskeletons that assist wearers with simple walking and lifting activities, improving the health and quality of life for aging populations. Progress in human augmentation technologies will likely face moral and ethical challenges.ConclusionThe US National Intelligence Council report asserts that “a shift in the technological center of gravity from West to East, which has already begun, almost certainly will continue as the flows of companies, ideas, entrepreneurs, and capital from the developed world to the developing markets increase”. I am not convinced that this shift will “almost certainly” happen. While the East, in particular Asia, will likely see the majority of technological applications, the current innovations are taking place mainly in the West. And I don’t think it is a sure bet that the center of gravity for technological innovation will shift to the East.