The FICO score is used by 90% of all lenders. Currently, less than 10% of lenders use VantageScore. Do you know how scores are “weighted”? I know this is basic information, but I still speak with capital seekers that don’t know the difference between a FICO score and a VantageScore. They can’t tell me what Scoring Model their credit monitoring company uses. They can’t tell me what credit scores they actually have on all three bureaus. Some believe their scores are static, not ever changing. Some don’t know there are different versions of credit scores being used. Often, they are unaware you have different scoring models depending on what type of loan or line of credit you are applying for. Attached you’ll see the basic makeup of a FICO score and a VantageScore. Notice the "weighted" difference between credit utilization between FICO and VantageScore. As a business owner, you want to see what lenders will see BEFORE applying for credit. Be sure to monitor all three credit bureaus and review your tri-merged credit report at least quarterly.

It pays to have a relationship with banks you are targeting for credit lines whether it’s a business credit card or a business line of credit. Many banks and other financial institutions utilize “internal banking scores” in addition to the traditional credit scores from credit bureaus (like FICO or VantageScore) to evaluate the creditworthiness of their current clients. Comprehensive view: While credit bureau scores provide a general assessment of credit risk, banks can gain a more holistic and in-depth understanding of a client's financial health by incorporating their own internal data and insights. Behavior scores: Internal scoring models, sometimes called "behavior scores," leverage the bank's own data on a client's banking behavior, transaction history, loan repayment patterns within that institution, and more. Benefits for existing clients: These internal scores can be particularly valuable for managing existing accounts, determining credit limit increases, and offering relevant financial products (like mortgages, credit lines, or auto loans) to current customers based on their demonstrated financial behavior with that specific institution. Faster and more personalized decisions: By using internal data, banks can potentially make more timely and tailored lending decisions, especially when combined with alternative data sources and machine learning techniques. In essence, while traditional credit scores provide a general guideline, banks utilize internal credit scores to refine their risk assessments and offer more targeted financial solutions to their existing client base. If you have a personal checking account, a business checking account, savings account, or personal credit card in good standing with your targeted bank before applying you will probably get higher business card credit line offers. If you can, open business checking accounts, make consistent deposits for two to three months before applying for business credit card products even better results will be obtained.

Unlike your personal FICO credit score, which ranges from 300–850, business credit scores are measured differently. Typically, from 0 to 100 (depending on the credit bureau). Here’s a quick breakdown: Dun & Bradstreet PAYDEX Score: Ranges from 0–100. A score of 80+ is considered excellent. Experian Intelliscore Plus: Ranges from 0–100. Shoot for a 75+. A higher score indicates lower risk to lenders. Equifax Business Delinquency Score: Typically ranges from 224–580. A higher score indicates lower risk to lenders. I like to see a 425+ These scores reflect how your business manages debt and obligations, and they’re critical for lenders, suppliers, and partners evaluating your reliability. Want to boost your business credit score? Business credit scores reward early payments. Strive to pay vendors and lenders before the due date whenever possible. Better yet, pay immediately after receiving the invoice. Before applying for business loans, traditional business lines of credit or SBA business loans, review your business credit and personal credit health. You want to see what lenders will see BEFORE applying for these full documentation type products. As a business owner, before applying for any financing, you should know what your personal credit reports and business credit reports contain. You want to “see” what the lenders will see before you apply. Are you interested in monitoring your personal credit and business credit reports and scores? If so, please consider NAV. https://nav.nkwcmr.net/c/2632394/164102/2410 It’s only $49 per month. Purchasing your Dun & Bradstreet business credit report is well over $100 for a single report. PLUS, the monthly payment reports as a active tradeline to all three business credit bureaus helping your business establish its own credit score.

You might have excellent personal and business credit scores—but that’s just part of the equation. If you really want to unlock substantial cash credit lines, you need to build out those credit profiles strategically. So, what’s the missing piece? It’s something many people overlook: Comparable Credit. Even with stellar credit scores, lenders still want proof that you, or your business, can handle larger credit lines. If your current credit limits are $500, $2,500, or even $5,000, and you're suddenly requesting $50,000, chances are it’s not going to happen. Banks typically offer 2x, maybe 3x your existing limits—if your credit files look solid. So before shooting for those high-five and six-figure lines, make sure your personal and business credit reports include a few larger credit lines already in place. Here’s how to do it: Every 6 months or so, ask your vendors and credit card issuers for credit limit increases, as long as you’re actively using them and paying on time. That $500 line can become $1,500. That $5,000 card? You can turn it into $15,000. This shows banks you’ve successfully managed higher credit amounts, and that’s what makes them comfortable lending you even more. Lenders want to see a track record of responsible repayment on larger limits before they’ll offer you the big guns. Yes, it takes time. But it works. And honestly, it’s the only reliable and legitimate path to high-limit business credit. So, build your foundation. Strengthen those files. Then go for the homerun.

To make it easier for the credit card issuer to raise your current credit limits, use this technique. Start using your targeted credit card (or cards) and run it up near the limit (75%). Buy all your life necessities and monthly obligations on your credit card when possible. All the stuff you were going to pay with cash, debit card, or check anyway. Pay the card off at the end of the month. Better yet, make two payments if you can each month 2-weeks apart. This helps with reporting lower usage when calculating your credit score. Do this for 2-3 months before asking for a credit line increase. This also is a great way to earn additional points or cash-back on things you were going to pay by cash, debit card, or check anyway. Make it easy for the credit card issuer to say YES to your request for a credit line increase. If you don’t use your current credit line, there is no reason for a lender to increase your credit limit. But if you use large portions of your credit line and make very aggressive payments, that is an attractive client for a bank to increase their credit lines for.