Some business owners are unaware of their credit scores and finally aware when they get turned down for a business loan or commercial real estate loan. Regardless, personal credit is used to qualify you for a business loan or commercial real estate loan. The best way to stay connected to your credit scores is through credit monitoring, it is not only for consumers it is also very important for business owners and real estate investors to utilize besides business credit monitoring
What Conforming Business Lenders Want
Most lenders require a minimum credit score of 680 fico score or higher to get you qualified for a conforming business loan or a conforming commercial real estate loan. If your credit is less than 680, your credit criteria will drop to an alternative business loan or alternative commercial real estate loan.
Exit Strategies for a Hard Money Loan
Was it a credit card criteria or was it the property criteria that you were required to enter into a hard money loan? If it was a property criteria such as fractured condos or a rehab, your answer would be either to flip or to buy and hold. If you elect to buy and hold, it is very necessary to exit out of your hard money loan quickly. If credit criteria was the reason to obtain a hard money loan, your exit strategy is simple. You can easily prepare your personal credit to be fixed, Whether it’s tweaking your credit or a full credit restoration. If you are qualified for a full credit restoration it will take some time especially when you have mortgage lates, collections and deficiencies. With a 680 credit score you can easily exit out of your hard money commercial loan and easily apply for a commercial real estate loan or an SBA loan.
An asset based loan requires a minimum of 680 credit score or better plus a minimum of two years in business with healthy tax returns and a healthy cash flow.
A Credit Score that Qualifies You for an Unsecured Business Credit Card
Again, the higher the credit score the lower the interest rate you can receive on a business credit card. If you decide to obtain a new or another business credit card, a 680 fico score would qualify you for a decent business credit card and rate.
Does a 680 score qualify you for a Jumbo Home Loan or an Auxiliary Loan?
The answer is, yes. A 680 fico score or better will get you qualified for a jumbo home loan or an auxiliary home loan. Since jumbo home loans and auxiliary home loans are unique, the higher the credit score the easier it is to get qualified for these types of specialized homes loans.
For more information on how we can help you with your personal credit or business credit locally in Naples FL, Bonita Springs, Estero and Fort Myers FL please fill out the online contact form about your concerns or give us a call at 855.477-9007. Read what our valued clients have to say about First Pro Capital and Credit Consulting Professionals on our Testimonials page.