2023 maybe challenging for some business owners since interest rates are up, so are the cost of goods and energy costs. When applying for a business loan or commercial real estate loan, what should the business owner do with his or her personal credit?
First, check your credit with Experian or myFico.com, these two systems are reliable and without impacting your credit with a new credit inquiry. The trend for 2023 are higher personal credit scores, recognizing the financial climate this economy is entering into a recession. Consider obtaining your personal credit scores greater than 680. A 680 credit score is the minimal threshold on a conforming interest rate loan, obtaining exceptional terms on a new home mortgage.
So where should the business owner’s personal credit scores be for 2023? We recommend the following credit scores for upcoming lending restrictions:
Auto Loan: A 680 credit score will allow some incentives, but not comparable to a 700 or better credit score, where the incentives for auto financing become greater.
Business Lending: 680 will get your business application processed for SBA, asset-based lending, or healthcare financing. The more you borrow, the more you are required to acquire that very good credit rating.
Commercial Real Estate Lending: 700 is a great starting point for commercial real estate lending, even though you are securitizing your loan with commercial real estate, it’s even more favorable to get your credit score at least 725 or above, specifically if you have that niche commercial real estate project, office building, mixed use or multifamily.
Home Lending: Especially, if you are opting into a jumbo home loan, a 700 to 725 is the minimal credit score for a reasonable jumbo loan program. Time to have that clean credit rating and stabilize your lending approval.
For more information on how this Florida boutique firm can help you fix your personal credit or business credit in Destin, Fort Walton, Miramar Beach and Pensacola Florida please fill out the online contact form about your concerns or give us a call at 855.477-9007. Conveniently located in Naples Florida. Read what our valued clients have to say about First Pro Capital and Credit Consulting Experts on our Testimonials page.
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