Having a good credit score is important for obtaining business credit cards and loans. The minimum credit score requirements can vary by lender and specific card. General Motors offers business credit cards through GM Business Credit Cards from Capital One, which has straightforward credit guidelines.
GM Business Credit Card Minimum Credit Score
The minimum credit score to qualify for a GM business credit card is 660. This requirement applies to both the GM Business Platinum Card and the GM BuyPower Business Card from Capital One. A credit score of 660 is considered good credit in most scoring models.
What a 660 Credit Score Means
A credit score of 660 falls within the “good” credit range on the FICO Score scale, which ranges from 300 to 850. This FICO band of 660-719 is above the “fair” range of 580-659 but below the “very good” range of 720-850.
At 660, the credit profile is considered acceptable risk for lenders. Approval odds for credit cards and loans are good at this level. Having a score of at least 660 qualifies for competitive interest rates from lenders.
Building Credit to 660
For those with scores below 660, the key is rebuilding credit over time. Payment history and reducing credit utilization are the biggest factors in improving scores.
Steps to boost credit scores to 660 include:
- Making minimum payments on time every month
- Paying down balances on revolving credit cards and lines
- Limiting new credit applications
- Checking reports for errors or discrepancies
- Allowing negative information to age off reports
With regular on-time payments and lowering credit utilization, credit scores can quickly improve. Those with poor credit in the 500-599 range can reach over 660 within 6 to 12 months of positive credit behaviors.
Comparing GM Business Credit Card Requirements
GM offers two business credit cards through its partnership with Capital One, each with the same minimum score required:
| Card | Minimum Credit Score |
|---|---|
| GM Business Platinum Card | 660 |
| GM BuyPower Business Card | 660 |
The GM Business Platinum Card and GM BuyPower Business Card both require applicants to have a personal credit score of at least 660. There is no difference in the minimum score needed for these two cards.
Comparing Other Issuers
The minimum score for GM business cards is similar to other issuers. For example:
- Capital One Spark Cards – 660
- Ink Business Cards – 660
- American Express Business Cards – No specific minimum but applicants should be in “good” credit range
Most major issuers of small business credit cards have minimum score requirements in the good credit range. The GM minimum score of 660 is aligned with competitors.
Does Business Credit Impact Approval?
For sole proprietorships and small businesses, approval is primarily based on personal credit, not business. However, those with an established business may supplement personal credit weaknesses with strong business credit profiles.
Factors that can help business owners with marginal personal credit scores include:
- Number of years in business
- High annual revenue
- Low business debt levels
- Positive payment histories on business accounts
While minimum score requirements still apply, having an excellent business profile can help approval chances for those with personal scores just under cut-offs. But a very poor personal score is difficult to offset with business credit alone when applying for startup or small business cards.
Building Business Credit
Steps to establish strong business credit:
- Obtain an Employer Identification Number from the IRS
- Set up business accounts and credit lines
- Apply for business credit cards
- Pay all accounts on time
With responsible use of business credit, a profile and credit score will develop over time that reflects repayment history. In some cases, this business credit can help offset marginal personal credit.
Other Application Factors
Beyond the minimum credit requirements, other aspects of the application are also considered:
- Time in business – Being established for at least 1-2 years improves approval odds
- Annual revenue – Higher reported annual revenue can help qualify for higher limits
- Account openings – Too many new accounts can negatively impact approval chances
- Inquiries – High number of recent inquiries can be a negative factor
Meeting the minimum credit score requirement is important. But these other factors also weigh on the final decision. Conservative use of credit and showing business longevity and revenue improve the likelihood of getting approved.
Alternate Options for Lower Scores
Applicants with credit scores below 660 have some options, such as:
- Secured business credit cards that require a deposit
- Business credit builder loans to establish positive payment history
- Co-applying with a business partner who has good credit
- Getting added as an authorized user on a business credit card account to benefit from the activity
While these options exist, the best approach is focusing on improving personal credit scores to meet minimum requirements through responsible behaviors. Building credit is the most consistent path to approval and acquiring business credit cards and financing.
Conclusion
A minimum credit score of 660 is required to qualify for the GM Business Platinum Card and GM BuyPower Business Card from Capital One. This 660 threshold is common among other major issuers as well. While business credit can supplement personal scores, the primary factor is an applicant’s personal credit profile. By understanding credit requirements and taking steps to improve scores, applicants can meet score cut-offs and be in a good position for approval for GM business credit cards.