{"ok":true,"canonical_url":"https://dealroom.so/glossary/credit-scoring","api_url":"https://dealroom.so/api/public/glossary/credit-scoring","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"credit-scoring","term":"Credit scoring","group":"The loan itself","definition":"Credit scoring is a system lenders use to assess a borrower's creditworthiness by assigning a numerical score based on their credit history. For you, a better score means lower risk to the lender and a higher chance of loan approval.","what_it_means":"SBA lenders use credit scoring, particularly the FICO SBSS score, to quickly pre-screen applicants for eligibility and risk. A strong personal credit score is crucial for your 7(a) loan application, as it directly impacts initial lender interest and loan terms. Ensure your personal credit is in good standing before applying.","url":"https://dealroom.so/glossary/credit-scoring","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"fico-sbss-score","term":"FICO SBSS score","url":"https://dealroom.so/glossary/fico-sbss-score"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"creditworthiness","term":"Creditworthiness","url":"https://dealroom.so/glossary/creditworthiness"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"What alternative credit scoring methods are now recommended for 7(a) Small Loans after the SBSS sunset?","url":"https://dealroom.so/for-lenders/questions/what-alternative-credit-scoring-methods-are-now-recommended-for-7-a-small-loans-after-the-"},{"question":"With the sunset of the SBSS score, what alternative credit scoring methods are acceptable for small 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/with-the-sunset-of-the-sbss-score-what-alternative-credit-scoring-methods-are-acceptable-f"},{"question":"With the sunset of SBSS, what alternative credit scoring methodologies are acceptable for underwriting 7(a) Small Loans ($500,000 or less)?","url":"https://dealroom.so/for-lenders/questions/with-the-sunset-of-sbss-what-alternative-credit-scoring-methodologies-are-acceptable-for-u"},{"question":"What operational adjustments must a lender make to its internal credit scoring and underwriting processes for 7(a) Small Loans following the SBSS score sunset?","url":"https://dealroom.so/for-lenders/questions/what-operational-adjustments-must-a-lender-make-to-its-internal-credit-scoring-and-underwr"},{"question":"What if my personal credit report shows a recent late payment on a minor credit card?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-credit-report-shows-a-recent-late-payment-on-a-minor-credit-card"},{"question":"Does having many recent credit inquiries on my personal credit report affect SBA 7(a) loan approval chances?","url":"https://dealroom.so/sba-7a/questions/does-having-many-recent-credit-inquiries-on-my-personal-credit-report-affect-sba-7-a-loan-"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Credit scoring","url":"https://dealroom.so/glossary/credit-scoring","source_type":"DealRoom Data"}}