Business Credit vs. Personal Credit: What You Don’t Know Could Hurt You

We recently received an insightful newsletter from Experian that we thought was worth sharing. It covers how business credit differs from personal credit. If you’re a small business owner, you’ll definitely want to check this out. 

“Many small business owners don’t realize that business credit scores are distinctly separate from personal credit scores. Your business credit score has no impact on your personal credit score, and vice versa.”

Many small business owners don’t realize that lenders, partners, or even competitors can view their business credit without permission. And that score can impact funding, vendor relationships, and growth. 

“Furthermore, business credit is expressed with a different numerical range than personal credit. Business credit scores provide a quick view of a company’s risk potential based on a scale of 1 to 100 — the higher the score, the lower the risk.”

Score Range	Risk Class	Risk Description
76-100	1	Low
51-75	2	Low-Medium
26-50	3	Medium
11-25	4	Medium-High
1-10	5	High

Another important tip – checking your business credit report is a business expense. Be sure to check with your tax preparer for expenses like this and any other routine expenses that are deductible.

If you’d like to get updates like this directly from Experian, you can sign up for their newsletter here https://www.experian.com/blogs/business-information/newsletter/

Have questions about how this affects your business? Call or email us to talk it through.  

Originally published by Experian Information Solutions on the Smart Business Reports Newsletter.