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About what credit score is required to be approved for a small business loan? |
About what credit score is required to be approved for a small business loan? For getting any kind of loan Credit History is much more important than credit score. Often, the lack of credit history is equated with bad credit. You should be aware that lenders will go through your credit report once you apply for loan for buying a house. Therefore you should polish your credit report. Anyway, in order to establish a good credit history and at the same time risen your credit score in a short time do following things: 1) Close all of your credit cards but one. It reflects in your credit report and it is a very good sign. For instance say that you have 5 credit cards with $1000 credit limit for each. Therefore you are responsible for $5000 of possible debt. But when you close 4 of them, now you are only responsible for $1000 of debt which lowers the level of risk of lending money to you. 2) If you have any loan, like car loan or any balance on your credit cards, try to pay more than your monthly payment for 6 months or something. I mean say your monthly due on your car loan is $150, try to pay $250 each month. Lenders can see these trends in your credit report and they see that you鈥檙e a responsible borrower. If you don鈥檛 have such loans, I suggest getting a $3000-$4000 loan and paying it off in full in 5-6 months. You might pay $200-$300 of interest but you will save thousands of dollars in your home mortgage and interest rates. Also checkout http://www.howtoestablishgoodcredit.com/... There are lots of articles there, related to your question, which you can find useful to boost your credit. Source(s): http://www.howtoestablishgoodcredit.com/... your score should be good like 620 and up.. hope this helps Around 600 is a good estimate. But each case is differant. At least 640. The higher the better. Of course score is not everything you have to have a good business plan and show the capability and the willingness to repay the loan no matter what your score. 660 mid fico / experian and above, minimum 620 fico, no derogatory tradelines, no bankruptcies mortgage banker |
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