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Finance, Credit and Loan Information

How to Figure Out Which Credit Score Your Bank Will Use to Approve You

If you are looking to get a loan for your business, you might think to yourself, “well, self, I have a great credit score. I can get this loan, no problem!” While you might be riding high with a credit score over 740, that doesn’t mean your business credit score falls into the excellent category. In fact, your business might not even have an established credit score at all. Let’s take a look at which credit score your bank will use when applying for a loan.

You Have More Than One Credit Score

Many small business owners don’t realize it, but you likely have more than one credit score. First, the one most people know about, is your personal credit score. The most popular method to measure a personal credit score is the FICO score, or another similar scoring model. The range of FICO scores falls between 300 and 850.

Next are your business credit scores. While your personal credit score is calculated based on your personal history with credit cards, student loans, mortgages, personal loans, and other debt, your business credit score is only focused on your business credit accounts. For example, a personal credit card does not impact your credit score, but a card opened under your business name, with your business EIN, can contribute to your business credit score. (You can check your full business credit profile — personal and business credit scores — for free on Nav.)

Nav accounts share three of your credit scores. A free account includes your Experian and Dun amp; Bradstreet business credit scores, which are reported in your Nav account on an A to F scale, like your grades in high school. The FICO SBSS is a small business credit score which is only available with a Premium or Premium Plus account. The FICO SBSS score is particularly important if you are looking for an SBA loan.

Dun amp; Bradstreet’s Paydex Scoreis one of the most widely used business credit scores. (The A-F score in your Nav account corresponds to a Paydex score on a 1 to 100 scale.)

Each reporting bureau may have slightly different data, but they should be fairly similar. The major bureaus for personal credit scores are Experian, Equifax and TransUnion. For business scores, Nav uses your data from Experian, Dun amp; Bradstreet and FICO.

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