Does your personal credit score impact a lender’s decision to offer you a business loan? Yes, it does!
A lender will check your personal credit score, in addition to your business credit report, when they’re deciding to lend to your business.
Your business and personal credit histories can affect:
- Whether or not you get approved for a business loan
- Your options for terms and payment schedules
- The interest rate on your loan
- The total amount of financing that lenders are willing to provide
Why is your personal credit score important when you apply for a business loan?
If you’re a first-time borrower, your business is relatively young, or your business has a low credit score, lenders will check your personal credit history before deciding to lend to you. This helps them gauge how trustworthy of a borrower you are and whether or not you will be able to repay the loan they give you.
Learn more about why your personal credit score matters.
Business Loans. Enabled Simply.