Small Business Loans in New Mexico
Small Business Loans in New Mexico
There are more than 172,000 small businesses that call New Mexico home. Together, they account for around 99% of all enterprises in the state. From the vibrant art markets of Santa Fe to the oil-rich Permian Basin and the agricultural valleys of the Rio Grande, these companies are the backbone of the local economy.
Whether you’re launching a film production service in Albuquerque or expanding a chile farm in Hatch, finding small business loans in New Mexico can be a key step in building your company. Here’s what you should know about securing financing.
Key Points
• The New Mexico Finance Authority (NMFA) manages the Smart Money Loan Participation Program, purchasing portions of bank loans to help lower interest rates for underserved and rural borrowers.
• The New Mexico Collateral Assistance Program (CAP) 2.0 pledges cash to cover collateral shortfalls, with a special focus on industries like outdoor recreation, film, and sustainable agriculture.
• The Loan Fund, a nonprofit organization certified as a Community Development Financial Institution (CDFI), provides small business loans up to $350,000 to entrepreneurs who may find it difficult to qualify for traditional bank credit.
• The Women’s Economic Self-Sufficiency Team (WESST) offers specialized microloans and training to women- and minority-owned businesses that need smaller amounts of capital.
• Nonprofit Elevated Lending Certified Development Company (ELCDC) is a key partner for SBA 504 loans, helping businesses finance major real estate and heavy equipment purchases.
Popular Types of Small Business Loans in New Mexico
Entrepreneurs in the Land of Enchantment may benefit from a financial ecosystem that blends federal support with robust non-profit lending networks. The following sections describe the most common funding options available to business owners across New Mexico.
New Mexico Small Business Loan Programs
The state encourages economic growth through the
New Mexico Economic Development Department (EDD) and the NMFA. They administer initiatives like the
Collateral Assistance Program, which helps businesses secure financing even if they lack sufficient assets, and the Smart Money Loan Participation Program, which allows the state to purchase up to 49% of a loan, reducing the risk for local banks and encouraging them to lend to smaller and rural businesses.
There are also nonprofit programs that can be helpful. Entrepreneurs who may have difficulty qualifying for traditional loans can try the Loan Fund, a nonprofit Community Development Financial Institution (CDFI), which provides loans up to $350,000. Elevated Lending Certified Development Company (ELCDC) helps companies interested in SBA 504 loans. And the Women’s Economic Self-Sufficiency Team (WESST) makes specialized microloans and training available to businesses owned by women or minorities.
Term Loans
A term loan provides a small business with an upfront lump sum of capital. The business then repays the principal, along with interest, which is usually charged at a fixed rate, in regular payments over a specific period of time (the term). Since the funds come all at once, this kind of loan can be especially well-suited to funding large one-time investments. For example, a brewery in Las Cruces might use a term loan to expand its taproom.
Recommended: Small Business Loans
Business Lines of Credit
Unlike a term loan, a business line of credit can provide access to a pool of funds that you can draw from whenever you need to, up to a limit predetermined by your lender. Typically, you’ll pay interest only on the money you actually withdraw, and as you repay the balance, you’ll replenish the pool of funds so the money becomes available for you to withdraw again.
Lines of credit can be helpful for businesses that have seasonal lulls or uneven cash flow. A gift shop in Taos, for example, could use a line of credit to purchase inventory ahead of the summer tourist rush.
Equipment Financing
If your company needs a specific physical asset, like machinery, vehicles, or technology, you might want to think about applying for equipment financing. An oil field service company in Hobbs could use an equipment financing loan to acquire a new drilling rig, for instance, while a rancher near Roswell might use one to purchase a new cattle trailer.
Because the equipment itself acts as collateral for the loan, reducing the lender’s risk, equipment financing loans tend to be easier to obtain than unsecured loans. Additionally, they often come with more favorable terms.
Small Business Administration (SBA) Loans
Small businesses can obtain SBA loans from approved private lenders, but these lending staples are partially guaranteed by the U.S. Small Business Administration. This federal backing generally lowers risk for the lender, which may permit lower down payments and longer repayment terms. If you qualify, these New Mexico business loans are available through many banks and credit unions.
Below are the types of SBA loans that may be the most useful for small businesses.
• The SBA 7(a) loan is extremely flexible: Amounts range from $500 to $5 million. It’s suitable for covering working capital, refinancing debt, or purchasing supplies.
• The SBA 504 loan is specifically intended for companies to use to acquire major fixed assets, such as commercial real estate or heavy equipment. The maximum amount is between $5 million and $5.5 million.
• The SBA Microloan is meant to help with short-term needs and can be useful to companies that need startup loans. You can borrow up to $50,000 and the maximum repayment term is seven years.
An SBA loan calculator can help you estimate what your loan costs might be for different kinds of SBA funding.
How to Apply for a Small Business Loan in New Mexico
Applying for a New Mexico small business loan can require preparation and attention to detail. You’ll need to show lenders a clear picture of your company’s robust financial health and a well-thought-out plan for how you would use their funds.
Here’s a step-by-step breakdown of how to apply for a small business loan in New Mexico.
Define Your Loan Purpose and Amount
Before you start contacting lenders, it may be a good idea to have a precise understanding of your funding needs and goals. You should be able to articulate exactly how much money your business requires and how it will generate a return.
A specific proposal, such as “$50,000 to install solar panels to improve energy efficiency,” demonstrates strategic thinking and financial planning.
Know Your Credit Score
Prospective lenders may pay particular attention to your credit profile when reviewing your New Mexico business loan application, likely scrutinizing your personal credit scores: Traditional banks often require a credit score for a business loan in the range of 680 or higher. Other kinds of lenders, such as online banks, may be willing to consider slightly lower scores.
Because your scores are so important, it can be a practical idea to review your credit reports before you apply so that you can spot any inaccuracies and have them corrected. It can also help you be sure you fully understand your financial situation before you submit your application for a New Mexico small business loan.
Gather Your Key Documents
Providing a potential lender with a loan application package that’s organized and complete may speed up the review process and demonstrate to a potential lender that you’re reliable, efficient, and motivated. While requirements vary by lender, you should generally be prepared to provide the following:
• Credit report
• Income statement
• Bank statements
• Budget
• Income tax returns (both business and personal)
• Business plan
• Collateral valuation and supporting documents (which may include titles, deeds, or invoices)
Compare Lenders and Loan Offers
When you’re considering New Mexico small business loans, it could be helpful to shop around to find the funding that best suits your needs. That’s because different banks may offer very different options on the same products. It may also be a good idea to compare offers from multiple kinds of sources, including small local banks, large national institutions, and online lenders.
As you evaluate financing proposals, it can be helpful to use a business loan calculator to estimate the monthly payments for different options. It can also be smart to look closely at the Annual Percentage Rate (APR) of each loan to understand its true cost.
Submit Your Application and Await Approval
After you’ve filled out the application form and have your supporting documentation organized, you should be ready to submit the application package. Once that’s done, you’ll have to wait for the lender’s response. This can take as little as two days in some cases, but may require several weeks in others.
Tips for Improving Your Loan Approval Chances
Lenders typically want to see evidence of your business’s stability as well as its ability to repay the loan. Taking steps to strengthen your business’s financial profile before you apply may help you increase your chances of securing a loan. Here are some strategies to consider trying:
• Make sure you have a realistic business plan with detailed financial projections.
• Work to build your business and personal credit scores by paying down your current balances and making timely payments.
• If you have collateral available, consider offering it as security to potentially bolster your application’s chance for approval with certain New Mexico business loans.
Recommended: Small Business Financing Guide
Other Funding Options for New Mexico Small Businesses
If a traditional loan isn’t a good fit for your company right now, there may be other ways to fund your business. New Mexico’s entrepreneurial ecosystem offers several alternative paths to capital. One or more of these options could align better with your company’s specific stage of growth or industry.
Small business grants are highly sought after because the funds don’t have to be repaid, and grants are available in New Mexico. The
Job Training Incentive Program (JTIP) offers to reimburse part of the cost of eligible workforce training, while the Women’s Economic Self-Sufficiency Team (WESST) helps entrepreneurs connect with various grant opportunities. National databases like
Grants.gov can also be a source for federal programs relevant to your industry.
Crowdfunding may be another viable route. Crowdfunding platforms allow you to raise smaller amounts of capital online from a broad base of supporters.
Additional Business Resources in New Mexico
Business success often requires more than just capital. Typically, it also takes guidance and help from a supportive community. Fortunately, New Mexico has a healthy network of resources designed to help small business owners navigate their challenges. The
New Mexico Small Business Development Center (NMSBDC) is a major resource, offering no-cost advising and low- or no-cost training at locations statewide.
For mentorship, local SCORE chapters can connect you with experienced business leaders who volunteer their time. Additionally, nonprofits The Loan Fund and DreamSpring both provide specialized consulting alongside their lending products. Engaging with your local Chamber of Commerce can also provide valuable networking opportunities.
The Takeaway
Securing a New Mexico small business loan can be an important factor that allows your company to expand and prosper. The process can seem daunting, but by defining your goals and utilizing state resources, you should be able to find the right financing solution for your company.
If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.
(without impacting your credit score)†
FAQ
How do I get a small business loan in New Mexico?
To apply for a New Mexico business loan, you can begin by defining what you need the funding for and checking your credit scores. Next, gather essential documents like your business plan, tax returns, and bank statements to help you complete your application for submission. Finally, compare offers from various lenders to find the best terms available to you for your New Mexico small business loan.
Can I get a startup business loan with no money?
Obtaining a startup business loan with no money can be challenging, since most lenders require an owner’s investment. However, some SBA microloans are designed for startups and may be more lenient on approval status. Another option is to research business grants, which provide funding that doesn’t have to be repaid.
How hard is it to get a small business loan in New Mexico?
The degree of difficulty tends to depend on your business’s financial health, time in operation, and credit history. Requirements for traditional bank loans can be rigorous, but online lenders are often more flexible, making them a potentially more accessible option for many New Mexico businesses.
What is the easiest type of business loan to get approved for?
Loans secured by collateral, such as equipment financing, are generally easier to obtain because the asset lowers the lender’s risk. Short-term loans and invoice financing from online lenders also typically have less stringent requirements than unsecured loans.
What credit score do I need for a small business loan?
Requirements vary, but for traditional bank and SBA loans, a personal credit score of 680 or higher is generally preferred. Some online lenders may approve applicants with scores in the low 600s. Bear in mind that higher scores can often result in better approval odds and lower interest rates.
What can I use a New Mexico small business loan for?
You can use a small business loan for almost any legitimate business purpose, but not for personal expenses. Common uses include purchasing inventory, buying equipment, funding marketing campaigns, or refinancing debt.
Are there any small business grants available in New Mexico?
Yes, grants are available from a variety of sources. The New Mexico Economic Development Department can be an excellent resource for finding state-level opportunities like the Job Training Incentive Program. You can also search national databases like Grants.gov for federal programs relevant to your industry.
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SoFi receives compensation in the event you obtain a loan, financial product, or service through SoFi’s marketplace. This webpage is owned and operated by SoFi Lending Corp., licensed by the Department of Financial Protection and Innovation under the California Financing Law, license number 6054612; NMLS number 1121636. ((www.nmlsconsumeraccess.org)). This page is NOT operated by SoFi Bank. Loans, financial products, and services may not be available in all states. All loan terms, including interest rate, and Annual Percentage Rate (APR), and monthly payments shown through SoFi’s marketplace are from providers and are estimates based upon the limited information you provided and are for informational purposes only. All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each provider’s discretion. The actual loan terms you receive, including APR, will depend on the provider you select, their underwriting criteria, and your personal financial factors. The loan terms and rates presented are provided by the providers and not by SoFi Lending Corp. Please review each provider’s Terms and Conditions for additional details.
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Dental School Loans | SoFi
DENTAL SCHOOL LOANS
Dental student loans you can smile about.
Federal graduate loan programs are changing. SoFi is here with graduate loans to help fund you through dental school—covering DMD and DDS educations.
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Your dental school loan comes with benefits.
Our graduate student loans are designed to give you peace of mind so you can focus on your studies.
All online. All easy.
Finish our online application in minutes—and adding a cosigner is just as easy.
Competitive rates.
A lower interest rate could now translate to a smaller debt burden after graduation.
No fees required.
That means no origination fees, no late fees, and no insufficient funds fees. Period.
View your rate
Checking your rate will not affect your credit score.†
Rates on graduate school loans for dental students.
Choose from a fixed or variable graduate student loan.
Not sure which to choose?
Learn more →
SoFi’s dental school graduate loans are tailored to fit your needs.
Get up to 100% of your school-certified costs covered.
Earn a 3.0 GPA or higher and get a cash bonus up to $250.3
SoFi gives you 12 months of a grace period to account for your residency programs.
Repayment options include our newest offering, a 20-year term.
View your rate
Checking your rate will not affect your credit score.†
Our dental student loan application process is fast, simple, and won’t hurt a bit.
Screen images simulated.
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Apply online in just minutes.
Get your rate fast and find out if you’re pre-qualified before you even finish your application. Easily add a cosigner in just a few clicks.
-
Select your rate and repayment option.
Choose from fixed or variable rates. Then, pick from four repayment options.
-
Sign and accept your loan.
Upload screenshots of your info, sign your paperwork electronically, and boom—it’s done. We’ll handle it from here.
View your rate
Checking your rate will not affect your credit score.†
Make repayment fit into your life.
Our repayment options allow you to choose what will work with your budget and lifestyle.
Deferred
Start paying principal and interest payments six months after you leave school.
- No payments while in school
- Highest overall cost option
Interest only
Pay only interest payments while you’re in school.
- Moderate payment while in school
- Reduces overall cost
Partial
Pay a $25 fixed monthly payment while you’re in school.
- Lowest payment option while in school
- Reduces some of the overall cost
Immediate
Start paying principal and interest payments right away.
- Highest payment option while in school
- Lowest overall cost option
View repayment examples
Dental graduate student loan FAQs
SoFi’s dental school loans can be used for up to 100% coverage of school-certified expenses. This includes tuition, fees, technology, housing, and more.
SoFi’s dental school loans allow you to defer up to 12 months to account for your residency program. Please keep in mind that interest continues to accrue during this time. SoFi has no penalties for prepayment or beginning full principal and interest payments prior to the end of school or the grace period which may reduce the overall cost of the loan.
SoFi’s dental school loans can be used for up to 100% coverage of school-certified expenses.
No, you do not need a cosigner to qualify for a SoFi dental school loan. However, cosigners could help you get a lower rate and/or increase your chances of approval. With SoFi’s online application process, you and your cosigner can see what rates and terms you pre-qualify for before submitting your full loan application—and it won’t impact your credit score.
The Federal Direct Grad PLUS loan program is being eliminated for new borrowers of all types starting July 1, 2026. SoFi’s dental school loans are an option to consider for students who can no longer use Federal Grad PLUS loans.
Key differences between Federal Grad PLUS and SoFi’s dental school loans include: interest rate options, origination fees (which SoFi does not have), term and repayment options. Federal Grad PLUS loans have fixed interest rates for the life of the loan with limited term and repayment options. SoFi’s dental loans offer both fixed and variable rate types to select from, as well as five repayment term options. Additionally, Federal Grad PLUS loans have origination fees.
Federal loans allow you to be eligible for certain types of forgiveness and unique income-based repayment plans. Please carefully consider all of your borrowing options at both a federal and private level.
This will depend on the loan terms that are selected. If you choose the deferred repayment option, full principal and interest payments can be deferred as long as the student remains enrolled at an eligible school at least half-time. Full principal and interest payments would begin 36 months after the student graduates or drops below half-time enrollment. Borrowers who have selected immediate repayment will begin full principal and interest payments upon full disbursement of the loan. Medical and veterinary school loans are also eligible for a 20-year repayment term.
See more FAQs
Medical Student and Veterinary School Graduate Loans | SoFi
MEDICAL AND VETERINARY STUDENT LOANS
Get the funding you need to pay for medical school, STAT.
Don’t let changes to federal graduate loans stop you from achieving excellence. SoFi is here to help with simple, flexible private student loan options to pay for your med or vet school education—covering MD, DO, DPM, DVM, and VMD degrees.
Received a mailer from us?
Your medical school loan comes with benefits—whether caring for humans or animals.
Our graduate student loans are designed to give you peace of mind so you can focus on your studies.
All online. All easy.
Finish our online application in minutes—and adding a cosigner is just as easy.
Competitive rates.
A lower interest rate could now translate to a smaller debt burden after graduation.
No fees required.
That means no origination fees, no late fees, and no insufficient funds fees. Period.
View your rate
Checking your rate will not affect your credit score.†
Grad school loan rates for medical and veterinary students.
Choose from a fixed or variable graduate student loan.
Not sure which to choose?
Learn more →
SoFi’s medical and veterinary school graduate loans are tailored to fit your needs.
Get up to 100% of your school-certified costs covered.
SoFi gives you 36 months of a grace period to account for your residency programs.
Defer up to 48 months during your residency, fellowship, or other surgical disciplines.
Repayment options include our newest offering, a 20-year term.
View your rate
Checking your rate will not affect your credit score.†
It’s not brain surgery. We made applying for a medical or veterinary student loan fast and simple.
Screen images simulated.
-
Apply online in just minutes.
Get your rate fast and find out if you’re pre-qualified before you even finish your application. Easily add a cosigner in just a few clicks.
-
Select your rate and repayment option.
Choose from fixed or variable rates. Then, pick from four repayment options.
-
Sign and accept your loan.
Upload screenshots of your info, sign your paperwork electronically, and boom—it’s done. We’ll handle it from here.
View your rate
Checking your rate will not affect your credit score.†
Make repayment fit into your life.
Our repayment options allow you to choose what will work with your budget and lifestyle.
Deferred
Start paying principal and interest payments six months after you leave school.
- No payments while in school
- Highest overall cost option
Interest only
Pay only interest payments while you’re in school.
- Moderate payment while in school
- Reduces overall cost
Partial
Pay a $25 fixed monthly payment while you’re in school.
- Lowest payment option while in school
- Reduces some of the overall cost
Immediate
Start paying principal and interest payments right away.
- Highest payment option while in school
- Lowest overall cost option
View repayment examples
Medical and veterinary graduate student loan FAQs
SoFi’s medical and veterinary loans can be used for up to 100% coverage of school-certified expenses. This includes tuition, fees, technology, housing, and more.
Yes. SoFi’s medical and veterinary loans allow you to defer up to 48 months during your residency, fellowship, or other surgical disciplines.
SoFi’s medical and veterinary loans offer a 36 month grace period to account for your residency programs. Please keep in mind that interest continues to accrue during this time. If your residency is less than 36 months, you may request to start full principal and interest payment sooner to reduce the cost of your loan. SoFi has no penalties for prepayment or beginning full principal and interest payments prior to the end of school or the grace period which may reduce the overall cost of the loan.
The Federal Direct Grad PLUS loan program is being eliminated for new borrowers of all types starting July 1, 2026. SoFi’s medical and veterinary school loans are an option to consider for students who can no longer use Federal Grad PLUS loans.
Key differences between Federal Grad PLUS and SoFi’s medical and veterinary school loans include: interest rate options, origination fees (which SoFi does not have), term and repayment options. Federal Grad PLUS loans have fixed interest rates for the life of the loan with limited term and repayment options. SoFi’s medical and veterinary loans offer both fixed and variable rate types to select from, as well as five repayment term options. Additionally, Federal Grad PLUS loans have origination fees.
Federal loans allow you to be eligible for certain types of forgiveness and unique income-based repayment plans. Please carefully consider all of your borrowing options at both a federal and private level.
No, you do not need a cosigner to qualify for a SoFi medical and veterinary school loan. However, cosigners could help you get a lower rate and/or increase your chances of approval. With SoFi’s online application process, you and your cosigner can see what rates and terms you pre-qualify for before submitting your full loan application—and it won’t impact your credit score.
SoFi’s medical and veterinary loans can be used for up to 100% coverage of school-certified expenses.
This will depend on the loan terms that are selected. If you choose the deferred repayment option, full principal and interest payments can be deferred as long as you remain enrolled at an eligible school at least half-time. Full principal and interest payments would begin 36 months after the student graduates or drops below half-time enrollment. Borrowers who have selected immediate repayment will begin full principal and interest payments upon first full disbursement of the loan. You would only begin payments on the amount disbursed. Medical and veterinary school loans are also eligible for a 20-year repayment term.
See more FAQs
Is 678 a Good Credit Score?
Is 678 a Good Credit Score?
By Laurel Tincher
(Last Updated – 12/2025)
A credit score of 678 is typically considered to be in the good range, though closer to the lower end than the higher.
Your credit score plays an important role in your financial life since it’s a snapshot of your creditworthiness. Those three digits can be a key factor when you apply for loans, mortgages, credit cards, and other forms of financing. A good score can open doors for you, but it may not get you the best offers available.
Here, you’ll take a closer look at what a 678 credit score means and how it can impact your borrowing options.
Key Points
• A credit score of 678 is considered good but is on the lower end of this range.
• Individuals with this score can qualify for personal loans, auto loans, and credit cards.
• However, they may not receive the most favorable interest rates or terms.
• There is potential to improve the score and access better financial offers.
• Tips include paying bills on time, keeping credit card balances low, and regularly checking the credit report.
What Does a 678 Credit Score Mean?
A 678 credit score is typically considered to be good, but it’s nudging towards the lower end of that range.
In general, credit scores range from 300 to 850, with 300 being the lowest number. The most popular credit scoring system is FICO®, and here’s a look at its score ranges:
• Excellent: 800 to 850
• Very Good: 740 to 799
• Good: 670 to 739
• Fair: 580 to 669
• Poor: 300 to 579
So, is a 678 a good credit score? Most definitely, according to the FICO scoring system. People with a credit score of 678 are seen by lenders as moderate credit risks, which indicates that they are handling their debt well. This score points to a history of good credit management, prompt payments, and a manageable debt load.
For these reasons, people with a credit score of 678 may qualify for a variety of credit products, including personal loans, auto loans, and credit cards. But there is room for improvement. If you build your credit score higher, you might qualify for lower interest rates and better terms when opening a line of credit or securing a loan.
What Else Can You Get with a 678 Credit Score?
A credit score of 678 is typically high enough to qualify for credit cards with fair terms, which can help you establish a good credit history. People with a 678 credit score can often take advantage of various benefits and rewards programs offered by credit card issuers, such as cash back, travel perks, and other incentives.
It’s also likely you will qualify for a home loan, personal loan, and car loan with favorable (though perhaps not optimal) terms.
Can I Get a Credit Card with a 678 Credit Score?
It is absolutely possible to get a credit card with a 678 credit score. A credit score of 678 places you in the good credit range, typically qualifying you for a line of credit with credit card companies.
Of the many credit card options available, it’s possible that the terms you’re offered might not be as good as those for people with excellent credit. For example, a number of issuers provide credit cards with rewards for those with a 678 credit score. However, people with higher scores might qualify for those offers with the very best cash back incentives, loyalty programs, and the most favorable interest rates.
When shopping for a new card, be sure to evaluate the details, including the credit limit, annual fees (if any), and other specifics. That can help ensure you get the best overall deal possible.
Getting a credit card with a 678 credit score not only enables people to pay for their daily needs, but it also gives them a chance to show that they manage their credit responsibly. That in turn can help you maintain your credit score or build it.
Can I Get an Auto Loan with a 678 Credit Score?
It is indeed possible to get an auto loan with a credit score of 678. According to Experian®, applicants typically need a credit score of 661 or higher to be approved for a car loan.
That said, you may have more options if you build your score a bit. Research indicates that the average credit score for a used-car loan was 690 and 757 for a new-car loan. A credit score in those ranges could unlock more offers or better terms.
Recommended: What Is an Installment Loan?
Can I Get a Mortgage with a 678 Credit Score?
It is possible to get a mortgage with a credit score of 678, but you may not get as favorable rates and terms as someone with a score in the 700s or higher.
For a conventional mortgage, you may be approved with a credit score of 620 or higher. However, those with a 740 score or higher are likely to qualify for better terms.
Government-backed home loans are also available and can be good options for people with lower credit scores. For example, FHA loans may be secured with a credit score as low as 500, though most require 580 or higher.
Recommended: Personal Loan Terms to Know Before Applying
Can I Get a Personal Loan with a 678 Credit Score?
Generally, it is possible to get a personal loan with a 678 credit score. In fact, there are lenders who offer this kind of loan for individuals with credit scores of 610 or 640 and up.
For the most favorable terms though (say, the lowest annual percentage rate), you may need a score of 680 or 690. Since a 678 credit score is so close to those numbers, you might want to work on building your score before securing a loan.
Ways to do that can include paying on time without fail, keeping your credit card balances at less than 30% of your limit, and also reviewing your credit report to check for (and resolve) any incorrect information.
In addition, other factors may play a role in the terms you are offered, such as income and employment stability. Once the loan is secured, you can use it in a variety of ways, from credit card debt consolidation to funding a vacation or wedding.
Recommended: Personal Loan Terms to Know Before Applying
Takeaway
Is a 678 credit score good? Yes, it does put you in that range, though towards the lower end. It reflects that you have probably been managing your credit responsibly and are therefore creditworthy. However, you may not qualify for the most favorable terms for loans and lines of credit, which are typically reserved for those with a credit score in the 700s or higher.
It can be a wise move to shop around and see what offers you’re eligible for. Some lenders focus on those with good credit scores versus those with excellent ones and may have terms that suit your needs.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
Photo credit: iStock/fizkes
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Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Is 735 A Good Credit Score?
Is 735 A Good Credit Score?
By Ashley Kilroy
(Last Updated – 12/2025)
A 735 credit score is considered a good score in the lending industry and can increase your access to financing, credit cards, and affordable interest rates. This credit score likely comes from a track record of consistent, healthy habits with debt. As a result, lenders typically feel comfortable with borrowers in this range, sometimes offering them unique benefits and more affordable terms to earn their business.
Whether you’re looking for a mortgage or a credit card with an increased spending limit, a 735 FICO® Score can open financial doors for you.
Learn more about what this score can help you qualify for and how you might further build it below.
Key Points
• A 735 credit score ranks in the good range on the FICO scale, indicating solid creditworthiness to lenders.
• Borrowers with a 735 score typically qualify for favorable loan terms, lower interest rates, and increased access to various credit products.
• Achieving a 735 score requires timely bill payments, a low credit utilization rate, and a long credit history, among other factors.
• This credit score exceeds minimum requirements for most loan types.
• Additional benefits include competitive lender offers and flexibility in choosing financial products with better terms.
What Does a 735 Credit Score Mean?
Lenders consider a 735 FICO Score to be a “good” credit score. Credit score ranges are usually from 300 to 850, with higher scores indicating better creditworthiness. Here’s a breakdown of credit score ranges:
• Poor: 300-579
• Fair: 580-669
• Good: 670-739
• Very Good: 740-799
• Excellent: 800-850
A FICO credit score of 735 falls within the “good” range, meaning you have a solid credit history. Lenders often offer favorable terms, such as lower interest rates, to individuals with scores in this range. It’s also bordering on the “very good” category, meaning you could have an even better standing credit-wise by building your score by five points.
How to Get a 735 Credit Score
Borrowers can work toward a “good” credit score of 735 by practicing some healthy financial practices:
• Payment history: Timely payment of bills, including credit cards, loans, and other debts, is crucial. Late payments or defaults can damage your score.
• Credit utilization: This is the ratio of your credit card balances to your credit limits. Maintaining no more than a 30% credit utilization rate can demonstrate responsible credit management. For instance, if you have a credit card with a limit of $10,000, spending $3,000 or less monthly with it can help build your credit score.
• Length of credit history: The longer your credit history, the better. For example, getting a credit card at 20 years old, paying it on time, and keeping the account open can be a positive vs. closing a line of credit you don’t use that often.
• Credit mix: A diverse mix of credit types, including credit cards, loans, and mortgages, can have a positive impact on your credit profile.
• New credit: Be cautious about applying for too many new credit accounts within a short timeframe. It could temporarily ding your credit score and is generally seen as risky behavior by lenders.
What Else Can You Get with a 735 Credit Score?
Having a 735 credit score can provide various financial advantages and open up opportunities. Here’s an explanation of the benefits that may be associated with having and maintaining a good credit score:
• Loan access: Lenders use credit scores to assess risk when borrowers apply for loans. A 735 FICO Score indicates responsible credit behavior, potentially making you more likely to be approved for loans, including mortgages, car loans, and personal loans.
• Preferred interest rates: A good credit score may translate into lower interest rates because lenders may perceive less risk in lending. In essence, lenders compete for low-risk borrowers and use more affordable interest rates to attract the most reliable borrowers. This dynamic could work in your favor, ultimately saving you money over the life of the loan.
• Favorable loan terms: Borrowers with a credit score of 735 may qualify for more favorable loan terms. For example, you might enjoy waived fees, increasing loan affordability.
• Expanded access to credit: A good credit score can give you access to a wider range of credit options. For instance, you might receive offers for more generous credit card rewards or for increased lines of credit.
• Stronger tenant profile: Landlords often check the credit histories of potential tenants to assess their financial responsibility. A good credit score can enhance your attractiveness as a tenant, making it easier to rent an apartment.
• More affordable utility installation: Some utility companies may check your credit score before providing services. A good credit score can allow you to avoid security deposits for cable or internet equipment.
Can I Get a Credit Card with a 735 Credit Score?
When you apply for a credit card, the company typically reviews your credit as part of how they determine if they want to do business with you. Often, credit card issuers are looking for a score of 670 or higher.
A 735 FICO credit score demonstrates a history of responsible borrowing and spending. As a result, you may qualify for many cards and rewards programs with this credit score. Your score may also help you obtain lower interest rates and expanded credit limits.
Can I Get an Auto Loan with a 735 Credit Score?
Auto lenders generally prefer borrowers with credit scores of at least 661, with higher scores resulting in better terms and rates. Therefore, a 735 FICO Score will qualify you for an auto loan and may help you lower your interest rate.
Remember, the rest of your financial circumstances, including your monthly income and ability to make a down payment, can affect what kind of auto loan you receive.
Can I Get a Mortgage with a 735 Credit Score?
A 735 credit score exceeds the usual qualification standards for all mortgage types. As a result, you can qualify for a mortgage with that score if you meet the other standards, including a debt-to-income ratio under 36%, a consistent employment history, and a house within your borrowing limit.
This credit score can help you get better interest rates because it surpasses typical minimum scores for all mortgages, including:
• 620 for conventional loans
• 700 for jumbo loans
• 500 with FHA loans with a 10% down payment or 580 with a 3.5% down payment
• 620 for VA loans
• 580 for USDA loans
Can I Get a Personal Loan with a 735 Credit Score?
Lenders prefer borrowers with credit scores of at least 670 for personal loans. So, a 735 credit score can qualify you for lower terms and more favorable rates. However, like other loan types, personal loans require a robust financial profile. Borrowers also need a low debt-to-income ratio and steady monthly income to qualify.
The Takeaway
A credit score of 735 is in the “good” range of FICO Scores, helping to position you to borrow at favorable rates and potentially qualify for numerous loan types. The path to achieving and maintaining a 735 credit score involves cultivating healthy financial habits, encompassing timely payments, judicious credit utilization, a diverse credit mix, and applying to new credit sparingly.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
Photo credit: iStock/Istoma
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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