So What Score is Needed For a Loan?

varied lenders have varied views on what constitutes a respectable credit score. While some desire flawless credit, others may accept lesser scores if sufficient funds and/or collateral are given. For certain lenders, it all depends on what the loan is for. If the bank has a lot of expertise with a particular Business Industry, they can be a little more lenient with the credit score requirements for that Industry than they would be with a different Industry. It's helpful to know that you can ask more than one bank. 

As a General Rule of Thumb

• 700+ and a good business plan : you are usually going to be lendable
• 680-700: typically still good with strong business plan & financials
• 650-680: sometimes depending upon market conditions, not as guaranteed even with good plan & financials
• 600-650 : sometimes local gap financing groups will work with you by providing some financing & taking a Secondary position on the Lien so a traditional lender might get on board. SBA will go as low as 620, but the issue is finding a participating SBA eligible lender willing to go that low. Your Local Kansas SBDC Advisor will know your options.
• Below 600: no one is going to lend to you until you repair your credit.

What's the best way to Repair/Improve your Credit Score?

One of the best suggestions to help repair your credit is to look at your credit report & look for the bigger dingers to your score like " uncollected write-offs" - we have seen people denied loans go back and offer to pay 25-50 cents on the $1 for $100 old cell phone bills to the companies to remove the item from their credit report. When the company agrees and removes the item, we have seen scores improve 30-50 points in 30 days. Aside from that, there isn't much we can help you with until your credit score improves to a lendable range of 600-650+. While a bank will run your credit through there preferred Credit Rating Agency during Loan Review, www.CreditKarma.com can allow your a Free way to get a ballpark score.

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