Credit Score Surgery: How do I prove I’m reliable when I’m applying for a business loan?

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Welcome to the Credit Score Surgery, where every week we tackle an important financial quandary…

Money talks - but sometimes, it can be hard to know exactly what it’s saying. Did you know your credit score talks a lot for you too?

Your credit score is more than just some digits on a screen. In fact, lenders sometimes use it as a barometer of your financial health, to help them get a good sense of how reliable you are. So it’s important to keep it in good shape! That’s why we’re here to help you out with your credit score questions in our Credit Score Surgery.

This week, we’re talking about setting up your own business. Namely: how to get your credit score in better shape to impress lenders.

Help! How do I make myself look good to lenders?

I’m in the process of starting up my own company and need to take out a business loan. I know my credit score will be looked at when I apply and I want to get it into a better place.

It’s not bad – but it’s not exceptional either. I’ve had regular loans in the past (which I’ve paid back on time), but nothing on this scale.

How do I find out what else actually affects my credit score, so I know what lenders are looking for?

For starters, make sure all your finances are in the best order they can be before you apply. This includes your credit score, but also make sure you’re absolutely ready to take the loan on.

Check up on your own credit score now to see where you’re at. CreditWise by Capital One is free and lets you check your credit score and full report - as well as helping you see what’s actually impacting it. It’s worth bearing in mind that your credit score won’t be affected by this, regardless of how many times you check it. 

Once you know where you stand, and you’re ready to take on a loan, you can decide if your score’s in a strong enough shape to take the next step.  Being turned down for a loan or credit card can impact your score, as can a lot of applications to lenders, so make sure you’re in the best possible position before applying. 

If your score isn’t looking great, a bonus of CreditWise is that you’ll get to see what’s actually impacting it. This should help you understand some steps you can take to start improving your score over time, putting you in a better place before you apply for your loan.

Good luck!

To find out your credit score, see your full report and find out what’s affecting it for free, visit CreditWise from Capital One.