Personal Credit vs. Business Credit: How They Affect Loan Approval
Your credit score walks into a bar—bartender says, “You again?” Yep, whether it’s personal or business, your credit history loves to show up at the most important times… like when you’re applying for a business loan.
Let’s break down how both types of credit can impact your funding journey, especially for small, scrappy businesses and micro-enterprises trying to grow.
Personal Credit: The Old Faithful
If your business is still new (under 2 years), lenders will almost always check your personal credit first. Why?
Because your business doesn’t have enough history yet. Your personal score becomes a proxy for how responsible you are with money.
When It’s Good:
- Personal score of 680+ opens doors to banks and premium lenders.
- You’ll likely qualify for better interest rates and higher amounts.
When It’s Meh or Bad:
- You may need to work with alternative funders (like Viking Funding).
You’ll need to show strong business revenue or collateral.
Business Credit: The Unsung Hero
Once you’ve got some time under your belt, business credit starts to matter—a lot.
- Business scores typically range from 0 to 100 (Dun & Bradstreet PAYDEX score is most common).
- A score of 75+ is considered strong.
- Lenders want to see timely vendor payments, low credit usage, and consistent activity.
How Both Work Together
For small and micro businesses, both scores matter:
Scenario | What Happens |
|---|---|
High Personal + Low Business | You may still get approved, but with limited terms. |
Low Personal + High Business | Tougher road, but alternative funders can help. |
High Both | You’re the unicorn lenders love. |
Low Both | Time to rebuild and explore funding partners who work with challenged credit. |
Tips to Keep Both Scores Strong
- Don’t miss payments (obviously).
- Keep debt low on both personal and business cards.
- Limit hard inquiries (especially within short windows).
- Monitor both reports regularly.
Which One Matters More?
It depends on:
- Your business age
- Your annual revenue
- The lender’s requirements
Traditional banks lean heavily on personal credit. Alternative lenders, like Viking Funding, take a more balanced approach—looking at revenue, potential, and business credit health too.
Need Help Making Both Scores Work for You?
Whether you’re just getting started or trying to untangle personal credit from your business, we’ve got tools, tips, and tailored funding solutions.
Call Viking Funding at 754-240-8620 or click the “Apply Now” button to talk to a real human (who drinks too much coffee and loves small businesses).
