Have you ever thought about the value and significance of a credit score? Do you know that the credit score is a lot more valuable? It is not just a number but is something on which many things depend related to loan approval. A 700 credit score is considered to be a good one in normal circumstances. The credit score is something that is always between loan applicants and the best available loan products in the markets. The better your credit score, the more are the chances of getting your loan approved at a low-interest rate and vice versa.
Those who are lucky to have a good score, they can easily qualify for a different type of business loans and credit cards and above all, at very affordable interest rates. There is so much value of credit score that the suppliers of businesses also check the credit score of business and then they decide whether they would like to do business with you or not.
There are three popular credit report generation firms called Experian, Equifax and TransUnion. All these sites are busy with tracking the scores. A credit score that is 700 or above, is considered to be a good one. If you have such a credit score, then you can easily apply for a loan at easy terms and with easy conditions.
Business financing becomes easy and favorable for those having a good score. Such applicants can also save money because of the 700 credit score loan rates.
In case you are thinking that if 700 credit score good or bad, then you must take a sigh of relief that this score is considered a good one.
Now let’s explain to you some of the benefits of having such a nice credit score.
- You can get qualified for startup loans:
When someone just takes the start of his business, then he is in the most troubling situation. During the startup phase, finances are the biggest challenge. Funding business during this phase is very important. And if the loan is approved then one can get sufficient funds to jumpstart quick business growth. But during this phase, it becomes difficult for the business to get their loans approved and this is because of their unproven credibility. There is no track record that lenders can use to evaluate business reliability. So this is the situation when lenders will tend to have a look at your personal credit score. And if you will be having a credit score of 700 or above, then lenders will be confident in approving your loan at easy financing terms and conditions.
It is your good credit score that will assure the lender that you are a safe borrower. Most of the banks and many small business association lenders get ready to sanction loans to such loan applicants. And all this can only be made possible if you have a credit score of 700 or above.
- Can qualify for a bank loan:
When any small business owner looks forward to applying for a loan, then he usually directs himself towards traditional banks and other SBA loan lenders. It is because of your good credit score due to which you can either apply loan from a bank or any SBA lender. Every bank product has different requirements and conditions, but your score will keep you in the safe zone.
- Can enjoy minimum interest rates:
When your credit history will be better than you are definitely going to become eligible for getting your loan approved easier than any other way. Apart from this benefit, there is one very important perk that you can enjoy because of your 700 credit score.
You can get the loan at a low-interest rate. This definitely helps in bringing more money in your wallets and accounts. In this situation, you can either take a loan from a bank or an SBA loan lender. In both these situations, you can avail the loan at a low-interest rate, as both the sources depend on your personal credit score to decide over the interest rate at which the loan shall be sanctioned.
- Higher limits on credit cards:
Most business owners use business credit cards for the sake of doing purchases and shopping items and products for their businesses. If you will have a good credit score, then you can get high credit card limits which is an absolute advantage.