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Does your credit score affect your ability to get a small business loan?

 
fairyinabubble

Asked by fairyinabubble at 8:23 PM on Jul. 9, 2010 in Money & Work

Level 17 (4,643 Credits)
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Answers (5)
  • Yes and No. Yes, if your company does not have an existing credit score, such as if you are just starting your business. They will base the decision to give you a loan or not on your personal score. However, if your business is already up and running and has had credit on its own, then they will base it off of your business's credit score. This takes a lot of time to build a business' credit score to a good one, just like it does with someone who has never had any credit and is borrowing for the first time. How much of a business loan do you need? In what time frame do you need it in? Look into small business grants and loans. You can find more information about them at www.sba.gov.

    JeremysMom

    Answer by JeremysMom at 11:30 PM on Jul. 9, 2010

  • yes....
    connorsmom1970

    Answer by connorsmom1970 at 8:24 PM on Jul. 9, 2010

  • Yep.
    Christine0813

    Answer by Christine0813 at 8:24 PM on Jul. 9, 2010

  • Yes.. it doesn't matter what kind of loan it is.
    If your credit has to be run for anything, credit card, loan, etc... your credit score matters.
    Sometimes, they're a little lenient if they see that you're working on it. Paid off a major debt, making payments on one of them for one full year, etc.. but most of the time, you'll either be denied or slammed with a giant interest rate.
    ManicMomma02

    Answer by ManicMomma02 at 8:27 PM on Jul. 9, 2010

  • Yes, credit scores effect a lot of things. Credit scores effects the interest rates on loans (personal, auto, business, mortgage). Credit Scores effect that amount that can be loan. Credit scores even dictate what your auto insurance premiums will be. (It's a known FACT that those with a low credit score pay MORE in auto insurance premiums). A poor credit score can even prevent you from getting a well paying job.
    SAHMinIL2

    Answer by SAHMinIL2 at 10:18 PM on Jul. 9, 2010

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