Navy Federal Business Account Reviews: Secure $25K Approval With Ease

Why Navy Federal Business Accounts Shouldn't Be Your Primary Bank

As a financial advisor, I often receive questions about whether a Navy Federal business account should be the primary account for a business. My answer is typically no, and here's why:

The Problem with Navy Federal Business Accounts

The primary issue with Navy Federal business accounts is that they do not report to the major business credit bureaus. This means that any activity in your Navy Federal account, such as credit card usage or loan payments, will not be reflected in your business credit profile. This can be a significant disadvantage when it comes to accessing business credit and financing from other lenders.

Getting a Navy Federal Business Account

To open a Navy Federal business account, you'll need to have two credit scores:

• FICO 9 experience
• Internal score (ranging from 100 to 450)

Additionally, Navy Federal is quite selective about the types of businesses they'll work with. They tend to view certain industries, such as credit repair, ATM distribution, and MLMs, as high-risk and may deny your application if your business falls into one of these categories. Even consulting-based businesses may be viewed as high-risk, so it's important to be cautious when describing your business activities.

Building Business Credit

To build strong business credit, it's crucial to focus on lenders that report to the major business credit bureaus, such as Equifax, Experian Small Business, and Dun & Bradstreet. These include:

• Tier 1 lenders: Capital One, Citi, and Chase
• Tier 2 lenders: Community banks and regional banks like PNC and Regions

While Navy Federal may provide a credit card and a small loan, these accounts won't contribute to your overall business credit profile. Instead, you should aim to build relationships with Tier 1 and Tier 2 lenders, making regular deposits and payments to establish a strong credit history.

Conclusion

In summary, while Navy Federal can be a convenient option for some businesses, it should not be your primary bank account due to its lack of reporting to the major business credit bureaus. To build a robust business credit profile, focus on working with Tier 1 and Tier 2 lenders that will help you establish a track record of responsible financial management. By taking this approach, you'll be well on your way to securing the financing and credit your business needs to thrive.

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