CreditStrong for Business

JULY 5, 2022

Payment history is the most important factor in calculating your FICO® credit score. Your payment history accounts for over a third of your overall FICO credit score, comprising 35% of the impact of all FICO credit score factors. Read more about the factors that impact your credit score.

Credit Scoring 52

Credit Scoring Credit Card Payments Credit and Collections Deductions 52

Fundera

MARCH 28, 2018

You probably know how important your credit score is when you’re applying for a small business loan. But with all of the surprising ways you can damage your credit, that number might come as a surprise when it pops up on your application. What Your Credit Score Is, and Why It Matters: A Quick Rundown.

Small Businesses 88

Small Businesses Credit Scoring Default Credit and Collections 88

Fundera

SEPTEMBER 13, 2016

We’re talking about that 3-digit, all-important number when it comes to borrowing money: your credit score. Just like any traditional bank, Chase will consider your personal and business credit score closely. You’ll also have to pay an annual fee to have a line of credit with Chase. Chase cares about the numbers.

Small Businesses 104

Small Businesses Credit Scoring Credit and Collections Default 104

Fundera

AUGUST 3, 2016

Over time, your credit report records the ups and downs of your life story—and every money-related decision you make. The Role of Credit Bureaus. Unfortunately for borrowers, your credit score isn’t a memoir. How Does Credit Work? Figuring Out Your Score. Payment History (35%).

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Credit Scoring Credit and Collections Default Credit Reporting Agencies 73

Fundera

JUNE 5, 2018

Personal liability means that you’re personally responsible for paying off your business credit card debt in case the primary payer—aka your business—can’t. That personal liability is why you’ll be prompted to fill in personal information, including your Social Security Number, on your business credit card application.

Credit Scoring 71

Credit Scoring Default Small Businesses Credit Card Payments 71

Fundera

SEPTEMBER 13, 2016

We’re talking about that 3-digit, all-important number when it comes to borrowing money: your credit score. Just like any traditional bank, Chase will consider your personal and business credit score closely. You’ll also have to pay an annual fee to have a line of credit with Chase. Chase cares about the numbers.

Small Businesses 92

Small Businesses Credit Scoring Credit and Collections Default 92

Fundera

MARCH 11, 2019

The owner should have also a personal credit score of at least 550. Since they have more stringent credit standards, they can afford to entrust businesses with more money. To qualify for a medium-term loan, you generally need a 600 personal credit score, one to two years in business, and more than $50,000 in annual revenue.

Credit Scoring 75

Credit Scoring Credit and Collections Small Businesses Credit Card Payments 75

Fundera

JUNE 6, 2018

Higher-risk borrowers are typically subject to higher interest rates, because the lender needs to be really sure that they’ll receive the money they’ve loaned, even (or especially) if a risky business defaults or shutters. ?TL;DR In lieu of a down payment, some no money down small business loans require the borrower to put up collateral.

Small Businesses 89

Small Businesses Default Credit Card Payments Credit Scoring 89

Fundera

NOVEMBER 14, 2018

Whenever you open a credit card or apply for a loan, credit bureaus collect information about your usage. That information appears on your credit report and is used to calculate a numeric credit score. Read on to learn all about how credit works, so you can be a smarter consumer and business owner.

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CreditStrong for Business

JULY 1, 2024

As long as you and the added user manage the account responsibly, it can provide a quick, easy, and significant boost to their credit score. How Much Will My Credit Score Go Up if I Become an Authorized User? Unfortunately, it’s impossible to predict how much your credit score will go up if you become an authorized user.

Credit Scoring 52

Credit Scoring Credit Card Companies Credit Card Payments Default 52

Fundera

JULY 5, 2018

You might be looking into a secured vs. prepaid business credit card if you’re struggling with your credit score, or trying to figure out which is best to build credit history. Both cards are excellent options for business owners—but each has ideal uses for different scenarios. Secured Credit Card.

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Fundera

JULY 30, 2018

But borrowing on a credit card also poses some risks, the biggest of which is exposure to your personal credit. Applying for too many cards or carrying high balances on your cards can hurt your personal credit score, which in turn can impact your ability to qualify for business financing in the future.

Credit Scoring 72

Credit Scoring Credit Card Companies Credit Card Payments Small Businesses 72

Due

JULY 25, 2023

That makes it clear to the credit bureaus that your card is active and being used. If your card has no balance for a few months, it is seen as inactive by the scoring models. At that point, the will no longer help your credit scores. But you still must make a payment before it is due.

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Credit Scoring Credit Card Payments Default Transactions 52

CreditStrong for Business

AUGUST 15, 2024

If you signed up for an EIN and tried to apply for a business credit card with it, any existing personal debts would unquestionably impact your ability to make your future business credit card payments. Lenders can check your business credit with just an EIN.

Credit Scoring 52

Credit Scoring Small Businesses Credit Card Payments Credit Card Companies 52

Due

OCTOBER 23, 2023

An individual’s credit utilization ratio indicates what percentage of their total available credit they are currently using. Credit reporting agencies use the utilization ratio as one of the components to calculate credit scores. Round up your loan payments. Take advantage of credit counseling.

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Due

JULY 14, 2023

Also, nearly half of all Americans have added more credit card debt since March 2020. Even more troubling, 57% of Americans have missed one or more credit card payments — which results in late fees and damages your credit score. It is also a good idea to check your credit score.

Credit Scoring 52

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Fundera

APRIL 5, 2018

That said, you can be pretty certain that the card issuer will consider this criteria really carefully when you apply for your business credit card. Credit card companies want to know that you’ll spend responsibly, and that your revenue can handle monthly credit card payments.

Credit Scoring 49

Credit Scoring Credit Card Companies Credit and Collections Small Businesses 49

Eagle Business Credit

MAY 9, 2024

If a borrower defaults, the ability of lenders to recover their funds is limited. It’s particularly useful for B2C businesses with high credit card sales volumes but less-than-perfect credit ratings. Defaulting on a merchant cash advance or online loan can have devastating consequences for your business.

Small Businesses 40

Small Businesses Credit Scoring Credit Card Payments Default 40

tillful

NOVEMBER 8, 2022

If the borrower defaults, the asset can be seized and sold by the lender to cover the outstanding debt. For example, if your business gets approved for a $5,000 credit card, your credit limit would be $5,000. Once you hit that limit, you'll need to pay down the balance before you can use the card again. Collateral.

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Credit Reporting Agencies Deductions Credit Scoring Credit and Collections 52

Fundera

MAY 22, 2018

Financing companies provide a lump sum of cash, which they calculate according to your business’s credit card receivables. In return, that financing company takes a percentage of your credit card sales. If you truly have no other options, a merchant cash advance will work, since many MCA providers accept bad credit.

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Bankruptcy Business Bankruptcy Chapter 11 Credit Scoring 40

Fundera

NOVEMBER 1, 2018

Your credit score might be a mess, you could have a lot of unpaid debt, and you don’t have a steady income stream. If you default on the loan, the lender will seize and sell off the collateral. With merchant cash advances, you receive an advance of money that you pay back over time with a cut of your credit card sales.

Credit Scoring 45

Credit Scoring Credit Card Payments Small Businesses Default 45

Fundera

MAY 19, 2018

They allow banks to loan to small business owners (and would-be business owners) with less risk, as the federal government guarantees to repay a significant portion of each loan if the borrower defaults. You should have good credit to qualify for an SBA loan, as the minimum credit score needed for approval is usually around 620.

Credit Scoring 49

Credit Scoring Small Businesses Credit Card Payments Transactions 49

CreditStrong for Business

OCTOBER 30, 2024

If you only missed one credit card payment a few years ago, it’s likely that something else contributed to your application denial. Too Much Outstanding Debt How much debt you owe is worth 30% of your FICO score. Each of these lowers your FICO score, and too many in quick succession is a red flag to lenders.

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