Credit Score Requirements for a Commercial Line of Credit
Your personal credit score is one of the primary factors lenders use when underwriting a commercial line of credit — especially for personally-guaranteed facilities. Score requirements vary significantly by lender type, with traditional banks typically requiring 680+ and alternative lenders accepting scores as low as 600 or lower.
Minimum credit scores by lender type
These are general ranges. Each lender sets its own requirements, and other factors like revenue and time in business can offset a lower score in some programs.
| Lender type | Typical minimum | Notes |
|---|---|---|
| Traditional / national bank | 680–720+ | Often requires established relationship |
| Community bank / credit union | 640–680+ | More flexibility for existing members |
| Online / alternative lender | 580–625+ | Depends heavily on revenue and bank history |
| SBA 7(a) line of credit | 650+ | Lender may have higher minimum |
Minimum scores are not approval guarantees. A 700 score with low revenue and high existing debt may be declined; a 640 score with strong cash flow may be approved.
Personal vs. business credit
For most small business lines of credit, both personal and business credit are reviewed. Personal credit (FICO score) is the more familiar metric and is typically weighted more heavily for smaller facilities. Business credit scores (from Dun & Bradstreet, Experian Business, or Equifax Business) matter more for larger facilities and established corporations. New businesses without a credit history rely almost entirely on the owner's personal score.
How your score affects pricing
Credit score has a direct impact on rate, limit, and likelihood of approval. The difference between a 640 and a 720 score can mean a rate difference of 5–15 percentage points with some alternative lenders — translating to thousands of dollars in additional cost on a $100,000 draw over a year.
Improving your score before applying
If your score is below your target lender's threshold, taking 3–6 months to improve it can meaningfully change your options.
- Pay down revolving balances (lowers credit utilization)
- Avoid new credit applications (prevents hard inquiries)
- Dispute and resolve any errors on your credit report
- Ensure all existing accounts are current (no missed payments)
- Request credit limit increases on existing cards (lowers utilization ratio without new debt)
Frequently Asked Questions
- Does my personal credit affect my business line of credit if I have a corporation?
- For most small business lines of credit — even those held by an S-Corp or LLC — personal credit is still reviewed and a personal guarantee is required. The corporate structure protects you in some legal contexts but does not remove your personal credit from the lender's evaluation.
- Can I get a commercial line of credit with a 580 credit score?
- A limited number of online and alternative lenders accept scores in the 580–600 range, particularly when offset by strong revenue and short-term cash flow. Rates will be higher, and credit limits lower. Consider working to improve your score while using other short-term financing if needed.
- What credit bureau do business lenders use?
- Most lenders pull from at least one of the three major personal credit bureaus (Experian, Equifax, TransUnion). Some pull multiple. For business credit, Dun & Bradstreet (PAYDEX score) is most common; Experian Business and Equifax Business are also used.