What Fico/Income Helps One Receive 5K Loan?

[jbh]

Hey,

I'm working hard to rebuild my credit and am trying to figure out where I need to be to apply and be approved for a simple personal $5k loan. I make $35-$40k/year (self employed) and by Feb, I'll likely be in the 700's for all 3 cra's by May '09 (Old accounts fall off, 2 cc's with 1+ year history and a 9 year auto loan paid in full)

Would that qualify me to establish a relationship with a bank in order to take out small loans? I figure if I can take one out, pay it and build trust, I can eventually within a year take out a small loan for my business and allow myself to prove my credit worthiness. Does this seem feasible or would my scores need to be higher/income need to be hire?

Thanks. I just keep thinking that banks are miserable beasts that ask for the stars for small loans and I want to know what your experiences have been.

[Anonymous]

Although your personal history will play a big part in taking out a loan for your business, look into a small business loan with the SBA.  I am not sure how these are doing right now, but with scores in the 700's, a decent history, and a decent business plan you should have a chance.  A business plan is huge though when you are talking about business loans.  They don;t want to loan you money to catch up on things, etc.  They want to see what you want to do with the money, the potential it has, and that you have thought it all through. 

[llecs]

My bank just offered us a biz loan. Their requirements were all based on the PG's info, rather than P&Ls or balance sheets (maybe they would based it some off our bank statements with them), but they wanted an EQ FICO of 660 and offered an unsecured LOC of $60k or $20k loan secured against a residence. However, we do have a 12 yr relationship with them. The rate would have been based on the PG (not me, CEO's FICO was at 650, so we passed).

[jbh]

Thanks, guys. My EQ fico is 658 without orchard reporting the major util change. That said, in NY, nobody will pull EQ other than a CU. So, if I can get TU/EXp to 680+ and clean it up, maybe I do have a chance after all.

As for SBA, I always worried they would be more strict. That said, maybe I'll just check them out. Of course, just being able to get a personal loan and proving myself to a bank would be good enough to. But with 3 ca's on 2 of my reports, I guess I should just wait til may when they are cleared. Those things are like a prison sentence.

TY