Good news for entrepreneurs with patchy credit: Your score could soon rise by dozens of points, possibly making it much easier to secure a business loan. Citing data from the Consumer Data Industry Association, The Wall Street Journal states that the three major credit-reporting firms--Equifax, Experian and TransUnion--will soon be removing many tax liens and civil judgments from consumer reports. Around 12 million people, or 6 percent of the population, will see increases in those scores as a result of the change, according to FICO, the organization that calculates credit-worthiness on a scale of 300 to 850 points, (i.e., your ‘FICO’ score.)
Small business loans are historically very competitive, with big banks approving just 24 percent of small business loans in January 2017. Small banks approved just under half (48.9 percent) of loans, according to the monthly small business lending index from Biz2Credit, an online small business lending platform. So, rosier credit scores could certainly help small businesses secure the capital they need to grow.