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And How It Impacts Your Loan Terms, Approval Limits, and Funding Options

If you’re a business owner or real estate investor with strong income, you might assume that lenders will line up to fund your next move. But if your credit score is sitting in the 580–679 range, you’ve probably hit a wall—higher interest rates, lower loan amounts, or flat-out denials.

Here’s the truth: your credit score isn’t just a number. It’s a financial signal that lenders use to price risk, structure terms, and decide how much they’re willing to lend. And even a 20–40 point bump can unlock thousands in savings and dramatically improve your funding options.

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🔍 What Is a Credit Score, Really?

Your credit score is a three-digit number (typically between 300 and 850) that reflects your creditworthiness—how likely you are to repay borrowed money. It’s calculated using factors like:

• Payment history (35%)
• Credit utilization (30%)
• Length of credit history (15%)
• Credit mix (10%)
• New credit inquiries (10%)

Most lenders use the FICO® Score, though some also consider VantageScore®. Either way, the higher your score, the lower the perceived risk—and the better the terms you’ll receive.

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💸 How Your Score Impacts Loan Terms

Let’s break it down with real-world examples:

Credit Score	Typical Interest Rate	Loan Amount Approved	Monthly Payment (on $250K)
760+	~6.5%	Full requested amount	~$1,580
620–639	~8.2%	Reduced by 20–40%	~$1,830

That’s a difference of $250/month—or $90,000+ over the life of the loan. And that’s just on interest. Lower scores can also mean:

• Higher down payment requirements
• Shorter loan terms
• More documentation
• Limited access to premium programs

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🧠 Why Strong Income Isn’t Always Enough

You might be making $20K+ a month, running a profitable business, or flipping properties with solid margins. But lenders still use your credit score to assess how you manage debt—not just how much you earn.

That’s why borrowers with strong income but mid-range credit often get stuck in the “almost qualified” zone. The good news? You don’t need perfect credit. You just need to show progress, clean documentation, and a clear funding purpose.

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🚀 What You Can Do Today

This blog series will walk you through every step of improving your credit score—from pulling your report to lowering utilization, disputing errors, and adding tradelines. But here’s where you can start:

• Pull your credit report from all three bureaus
• Identify any errors or outdated accounts
• Pay down revolving balances below 30%
• Avoid new credit inquiries before applying
• Consider working with a trusted credit repair partner

👉 Click here to start improving your credit profile today.

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💬 Final Word

Your credit score doesn’t define your potential—but it does shape your funding options. By understanding how lenders view your profile, you can take control of the process, improve your terms, and unlock the capital you deserve.

Stay tuned for Post 2: How to Pull Your Credit Report and Spot the Red Flags—coming next in the series.

📞 Questions about funding? Call or text Mark directly
🌐 BusinessAndRealEstateLoans.com

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