What Credit Score Do You Need for a Business Credit Card?

Business credit cards help companies manage expenses, establish credit, and access financing. Business owners often wonder about the credit score needed for approval. While credit scores are central, approval involves more than a single numerical threshold. Understanding these factors helps businesses navigate the application process effectively.

The Interplay of Personal and Business Credit Scores

For many small businesses, especially new ventures, a personal credit score plays a significant role in obtaining a business credit card. Lenders often require a personal guarantee from the business owner, linking the individual’s creditworthiness to the business’s ability to repay debts. The personal credit history serves as a primary indicator of financial responsibility.

A personal credit score, like a FICO Score or VantageScore, reflects an individual’s financial behavior, including payment history and debt levels. In contrast, a business credit score measures a company’s financial health and payment reliability. Major business credit bureaus such as Dun & Bradstreet, Experian, and Equifax generate these scores, using different methodologies and scales.

Business credit scores become more relevant as a company matures and develops its own financial footprint. For established businesses with a history of on-time payments and credit utilization, the business credit score can stand on its own, reducing reliance on the owner’s personal credit. However, for startups or businesses with limited operational history, the personal credit score often remains the dominant factor in credit card application decisions.

What Credit Score Do You Need?

The personal credit score needed for an unsecured business credit card falls within the “good” to “excellent” range. A FICO Score of 670 or higher is considered “good” and is the minimum requirement for many unsecured business credit cards. Scores of 700 or above improve approval chances, especially for cards offering better rewards or lower interest rates.

FICO Scores are categorized into specific ranges:
800-850 is “excellent.”
740-799 is “very good.”
670-739 is “good.”
580-669 is “fair.”
Scores below 580 are “poor.”

Some basic unsecured business credit cards are available for individuals with a “fair” credit score (580-669), but these options come with higher interest rates and fewer benefits. For those with “poor” credit (below 580), secured business credit cards, which require a cash deposit as collateral, are a viable option to help build credit.

Business credit scores also have their own scales and interpretations. Dun & Bradstreet’s PAYDEX score ranges from 1 to 100, with 80-100 indicating excellent payment performance. Experian’s Intelliscore Plus ranges from 1 to 100 (a newer version goes up to 850), with 76 or higher considered low risk. Equifax offers several business scores, including a business credit score ranging from 101 to 992, where scores around 550 or higher are viewed as good. The exact score required varies by card issuer and the specific credit product.

Beyond the Score: Other Approval Factors

A credit score provides a snapshot of financial reliability, but lenders consider a broader set of factors when evaluating business credit card applications. These additional elements paint a complete picture of a business’s financial health and its capacity to manage new debt. Lenders mitigate risk by assessing multiple dimensions of an applicant’s profile.

Business revenue or income is a significant factor, demonstrating the company’s ability to generate cash flow and repay obligations. Lenders require sufficient income to cover potential credit card expenses. The length of time a business has been operational also influences decisions; newer businesses, especially those less than two years old, face stricter requirements.

The industry type plays a role, with some sectors considered higher risk due to economic volatility or specific business models. A personal guarantee, which obligates the business owner to personally repay the debt if the business defaults, is a common requirement. This directly links the owner’s personal finances to the business’s liabilities. An existing banking relationship with the issuing financial institution can be a favorable factor. Lenders also examine the applicant’s personal debt-to-income ratio, particularly when a personal guarantee is involved, to assess overall financial burden.

Building and Monitoring Your Credit Profile

Understanding and actively managing both personal and business credit profiles is a continuous process that supports financial health. Regular monitoring allows business owners to identify potential issues and track progress. Accessing credit scores and reports is a foundational step in this management.

For personal credit, individuals can obtain free credit reports annually from AnnualCreditReport.com. Many banks and credit card companies offer free access to FICO or VantageScore credit scores. Checking one’s own score does not negatively impact it. For business credit, major bureaus like Dun & Bradstreet, Experian, and Equifax provide services to access business credit reports and scores, though these come with associated fees. Obtaining a Data Universal Numbering System (DUNS) number from Dun & Bradstreet is an initial step for businesses to establish a credit file.

Several elements contribute to a strong credit profile. Payment history is important for both personal and business credit, as consistent, on-time payments demonstrate reliability. Credit utilization, the amount of credit used relative to the total available credit, significantly impacts personal scores. Keeping balances low, ideally below 30% of the limit, is beneficial. The length of credit history and the diversity of credit types also play a role. For businesses, establishing credit involves obtaining a DUNS number, opening vendor accounts that report to business credit bureaus, and responsibly managing any business loans or lines of credit.