Credit score is one of the first things any lender checks — but “what score do I need?” doesn’t have one answer. It depends entirely on which type of loan you’re pursuing and which lender you’re applying to.
Personal Credit vs. Business Credit
Most small business lenders check your personal credit score, especially if your business is less than three years old or doesn’t have an established business credit profile. This is because in the absence of a long business history, personal credit is the best proxy available for your behavior as a borrower.
Personal credit is measured by FICO scores ranging from 300–850:
- 750+: Excellent — qualifies for best rates
- 700–749: Good — qualifies for most loans
- 650–699: Fair — qualifies with most online lenders
- 600–649: Below average — limited options, higher rates
- Below 600: Poor — alternative lenders or MCAs only
Business credit is measured differently by different bureaus:
- Dun & Bradstreet PAYDEX: 0–100; 80+ is considered good
- Experian Business: 1–100
- Equifax Business: Failure score and credit usage score
Minimum Credit Score by Loan Type
| Loan Type | Typical Minimum Score |
|---|---|
| Bank term loan | 680–700 |
| SBA 7(a) loan | 650–680 |
| SBA Express | 650 |
| Online term loan | 600–620 |
| Business line of credit (bank) | 680 |
| Business line of credit (online) | 600–625 |
| Equipment financing | 600–620 |
| Invoice financing | 500–550 |
| Merchant cash advance | No minimum (500+) |
What If Your Score Is Too Low?
Short-term fixes (1–3 months):
- Pay down revolving debt to reduce credit utilization below 30%
- Dispute errors on your credit report
- Become an authorized user on a business partner’s high-limit, low-utilization account
Medium-term fixes (3–12 months):
- Apply for a secured business credit card and pay it off monthly
- Open a Net-30 vendor account and make consistent on-time payments
- Avoid applying for multiple loans simultaneously (each hard pull lowers your score)
Longer-term (1–2 years):
- Establish a formal business credit profile with Dun & Bradstreet (file for a DUNS number)
- Make on-time payments on all existing business and personal obligations
- Keep business and personal finances fully separated
A low credit score doesn’t mean you can’t borrow — it means you’ll pay more and have fewer options. The best time to build credit is before you need a loan. Read our full guide on what lenders actually look for to see how credit score fits alongside revenue, time in business, and debt coverage in the full underwriting picture.
Frequently Asked Questions
What credit score do I need to get a business loan?
Requirements vary widely. Revenue-based lenders like Fundivi have no minimum. Most online lenders accept 550 to 625. Banks and SBA lenders generally require 650 or higher.
Does applying for a business loan hurt my personal credit score?
Most online lenders start with a soft pull that does not affect your score. A hard inquiry only occurs after you accept an offer. Applying to multiple lenders in a short window is treated as rate shopping and has minimal impact.
Do lenders look at my personal credit or my business credit?
Most lenders check both. Online lenders lean on personal credit for faster decisions. Business credit scores matter more for larger loans and SBA applications. Building both in parallel opens more doors over time.
Can I get a business loan with a 500 credit score?
Yes. Credibly and Fora Financial accept scores as low as 500. Expect shorter terms and higher rates at that level. Improving your score by even 50 to 75 points can meaningfully expand your options. Browse our approved lenders to see which providers on our platform accept the lowest credit score thresholds.
How can I improve my credit score before applying for a business loan?
Pay down revolving balances, avoid new missed payments, and dispute any errors on your report. For business credit, open trade accounts with vendors that report to business bureaus and pay them on time to build your Paydex score.
Will a business loan show up on my personal credit report?
It depends on the lender. Most require a personal guarantee, which can appear on your personal report. OnDeck reports all loans to the three major bureaus — helpful if you repay on time, harmful if you do not.
What is the difference between my personal credit score and my business credit score?
Personal credit is a FICO score tied to your SSN. Business credit is separate, tied to your EIN, and scored on different scales. The two can be built independently, which matters once your business is established.