What Credit Score Do You Need for a Business Line of Credit?

What Credit Score Do You Need for a Business Line of Credit?

Here is the short answer: it depends on where you borrow. A traditional bank line of credit generally wants a personal FICO of about 680 to 700. Online and alternative lenders are more flexible, with some accepting 580 to 620 at a higher cost.

The score sets the door you walk through, not whether a line exists for you. Banks reward the strongest credit with the lowest rates. Online lenders open the door wider and price the added risk into the rate. Either way, the score is only part of the file.

Lenders also want to see time in business and real revenue. Most look for about 6 or more months in business, and they verify your income through your business bank statements. A line of credit is revolving money the lender expects you to draw and repay, so proof you can carry it matters as much as the number.

Business Line of Credit Requirements by Lender Type

Here is how the two main paths compare.

Lender type	Personal FICO	What to expect
Traditional bank	About 680 to 700	Lowest cost, strictest file, longer track record wanted.
Online or alternative	About 580 to 620	Easier approval, faster funding, higher rates for the added risk.
Both	Any	About 6 or more months in business and verifiable revenue through bank statements.

If your score sits between these bands, you may qualify at a bank on a strong revenue story or at an online lender on price. Knowing your number first tells you which door to knock on.

What Lenders Really Score

Your personal credit still gates most small-business lending, and a line of credit is no exception. That score is built from five factors, and the two biggest are the two you can move fastest. Payment history (35 percent) and amounts owed (30 percent) together make up roughly two thirds of a FICO score, and amounts owed is mostly your credit card utilization, which you can lower in a single billing cycle. Since most line-of-credit lenders pull your personal FICO, cleaning these up before you apply helps even when the credit is for the business.

Beyond the Score

The score gets your file read. These factors decide the line and its limit:

1. Time in business. Most lenders want about 6 or more months, and some banks want longer.
2. Monthly revenue. Verified through your business bank statements. Steady deposits can offset a middling score.
3. Debt-to-income and existing debt. Lenders weigh what you already owe against what the business brings in.
4. Cash flow. A line is revolving money, so the lender wants proof you can carry draws and pay them back.

Strong, consistent deposits are the single most reliable way to turn a borderline application into an approval, because they show the lender the business can service the line.

Download Credit Booster AI before you apply. It reads all three of your personal credit reports, flags the errors that drag your score down, and shows which paydown lifts your score the most, so you apply from the strongest position you can reach.

How to Improve Your Score Before You Apply

You do not need a perfect score. You need to reach the band that matches the lender and rate you want.

1. Lower your card utilization. Getting balances under 30 percent of their limits, and ideally under 10 percent, is the quickest win. Amounts owed is about 30 percent of your score.
2. Fix report errors. One in five reports carries a mistake. Removing a wrong late payment or a paid collection can move your score fast.
3. Keep every payment on time. Payment history is 35 percent of the score, and lenders read the recent months closely.
4. Avoid new personal accounts right before applying. Fresh inquiries and new debt can nick your score at the worst moment.

A realistic 90-day improvement from these moves is 30 to 60 points, often enough to move from an online lender’s rate to a bank’s.

The Bottom Line

A business line of credit is within reach across a wide range of scores. A bank line wants a personal FICO around 680 to 700, while online lenders accept 580 to 620 at a higher cost. Either way, plan on about 6 or more months in business and revenue you can prove through bank statements.

Before you apply, spend a few weeks pulling down card balances and clearing report errors. A 30 to 60 point move can drop your rate or upgrade your lender. Download Credit Booster AI on iOS and Android to see your reports, catch what is holding your score back, and fix it before the lender pulls your file.

Related reading: See the score you need for an SBA loan, a startup business loan, and a merchant cash advance. For the wider view, read the credit score for a business loan.

Sources

• Crestmont Capital, Business Line of Credit Requirements: crestmontcapital.com
• Bankrate, Business Line of Credit: bankrate.com
• FICO, What Makes Up Your Credit Score (myFICO): myfico.com

Frequently Asked Questions

What credit score do you need for a business line of credit?

Traditional bank lines of credit generally want a personal FICO of about 680 to 700. Online and alternative lenders are more flexible, with some accepting 580 to 620 at a higher cost. On top of the score, you usually need about 6 or more months in business and verifiable monthly revenue through your business bank statements.

Can I get a business line of credit with a 600 credit score?

Often yes, but through an online or alternative lender rather than a traditional bank. Those lenders accept scores as low as 580 to 620, and they price the added risk into a higher rate. A bank line typically wants 680 to 700, so at 600 you trade the bank’s lower cost for the online lender’s easier approval.

What is the minimum time in business for a line of credit?

Most lenders want to see about 6 or more months in business, and they verify it through your business bank statements. Some traditional banks want a longer track record. Revenue matters alongside the time in business, because the lender wants proof the business can carry and repay the draws.

Does a business line of credit use my personal or business credit?

For most small businesses, the lender leans on your personal FICO, especially early on before the business has built its own credit file. Bank lines usually want 680 to 700 personal, online lenders 580 to 620. Larger, established businesses may qualify on business credit alone, but a personal guarantee is common.

What else do lenders check besides my score?

Your time in business (usually about 6 or more months), your monthly revenue through business bank statements, your existing debt load, and your cash flow. A strong score with thin revenue can still be declined, and steady deposits can help offset a middling score.