Your personal credit score is the single most heavily weighted factor in business LOC underwriting — more than revenue, more than time in business. Lenders use it as a proxy for financial discipline, and in the early years of a business, your personal repayment history carries most of the risk assessment weight.
The thresholds below aren't soft guidelines. Lenders code them as hard decision rules in their underwriting systems. A score of 649 at a lender with a 650 minimum isn't "close enough" — it's a decline. Understanding exactly where you stand before applying is how you avoid a hard inquiry on your credit report for an application that was never going to be approved.
Credit Score Thresholds by Lender Type
Score Finder: See What You Likely Qualify For
Business LOC Score Finder
Slide to your estimated personal credit score to see which lender types are available and what rates to expect.
Minimum Score by Lender Type (2026)
| Lender Type | Min. Personal Score | Min. Business Score | Typical APR | Line Range |
|---|---|---|---|---|
| Online Lenders (Fundbox, Bluevine, OnDeck) | 625–650 | Not required | 15–40% | $6K–$250K |
| Credit Unions | 660–680 | Helpful (PAYDEX 60+) | 8–13% | $10K–$500K |
| Community Banks | 680–700 | Helpful (PAYDEX 70+) | 9–16% | $25K–$1M |
| Regional / National Banks | 720+ | Required (PAYDEX 75+) | 7–13% | $50K–$5M |
| SBA CAPLine | 680+ | Reviewed | Prime + 2.75–4.75% | Up to $5M |
Personal Credit vs. Business Credit: What's the Difference?
Personal and business credit are separate scoring systems, and lenders look at both — but they weight them differently depending on your business's age and size.
Personal Credit Score (FICO)
For businesses under 3 years old, your personal FICO score carries 60–80% of the underwriting weight. Lenders are really underwriting you because the business doesn't have enough independent history. The personal guarantee that accompanies almost every LOC application formalizes this — if the business defaults, you're personally liable.
Business Credit Score
Three main business credit bureaus report on your business:
- Dun & Bradstreet PAYDEX — Scores 1–100. 80+ is "good." 70+ gets you in range for most banks. Built by paying suppliers and vendors on time.
- Experian Business — Scores 1–100. 76+ is "low risk."
- Equifax Business — Scores 0–300 (Payment Index) and 101–992 (Credit Risk). Higher is better.
A strong business credit score can partially offset a personal score that's just below a lender's threshold — especially at credit unions with relationship-based underwriting. A business score of 80 PAYDEX + 665 personal may clear a credit union's 680 personal score requirement in some cases.
Check What You Qualify For
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Check My Options →How Your Credit Score Affects Your Rate
The score threshold determines whether you're approved. But within the approved range, every band meaningfully changes what you pay.
| Score Range | Lender Type Available | Typical APR | Annual Interest on $100K |
|---|---|---|---|
| 625–649 | Online only | 28–35% | $28,000–$35,000 |
| 650–679 | Online + some CUs | 18–28% | $18,000–$28,000 |
| 680–719 | CUs + community banks | 9–16% | $9,000–$16,000 |
| 720–749 | All lenders | 7–12% | $7,000–$12,000 |
| 750+ | All lenders (best terms) | Prime + 1–3% | $5,500–$8,000 |
The gap between a 650 and a 680 score is 30 points. On a $100K LOC over 2 years, that gap is worth $18,000–$38,000 in interest savings. Spending 90 days improving your score before applying is often the highest-ROI move available to a small business owner.
Fastest Ways to Improve Your Score Before Applying
Works in 30–60 Days
- Pay revolving balances to below 30% utilization. This is the single fastest move. Credit utilization is recalculated every billing cycle. Pay down a card from $8,000 to $2,500 on a $10,000 limit (80% → 25%) and your score can jump 20–50 points in the next billing cycle. Pay it to zero for maximum impact.
- Dispute reporting errors. Pull your reports from annualcreditreport.com and your business reports from D&B, Experian Business, and Equifax Business. Errors appear on ~20% of credit reports. A successful dispute on a derogatory account can move your score significantly within 30 days.
- Get added as an authorized user. If a family member or business partner has a credit card with 5+ years of history and low utilization, being added as an authorized user can add 10–30 points to your score within 30–60 days.
Works in 3–6 Months
- Open net-30 vendor accounts. Suppliers like Uline, Grainger, and Quill report payment history to business credit bureaus. Three to five accounts paying on net-30 terms builds your PAYDEX score materially within 2–3 reporting cycles.
- Request credit limit increases. A limit increase on an existing card (without spending more) reduces your utilization ratio and can add 10–20 points. Call your card issuers — this is often a soft pull.
- Avoid new hard inquiries. Each hard inquiry reduces your score 5–10 points and stays on your report for 2 years. Consolidate your LOC applications into a 30-day window — multiple inquiries for the same type of loan within 30–45 days are often treated as a single inquiry by FICO.
For a full picture of the other qualification factors beyond credit score, see our complete LOC requirements checklist for 2026.