Business Credit vs. Personal Credit

How much do you know about business credit? Would it surprise you to find out that, according to Experian, 90% of business owners know very little about commercial credit. Many use personal credit to run their businesses. That said, there are several significant differences every business owner should know between business and personal credit, including:

  • All business owners, including “part-time” or even “home-based” businesses can benefit by having company credit cards and vehicle leases on their business credit vs. their personal credit.
  • Business credit capacity is generally larger than personal credit capacity. You may be able to leverage 10 to 100 times more credit to grow your business and/or raise funds.
  • Business / Commercial credit scores use a different calculation as opposed to personal credit scores. By way of example, credit utilization can drastically reduce your personal credit score, but has a minimal impact on business credit.
  • A business owner uses the business EIN for credit, and can have multiple EINs for multiple companies. With personal credit, you’re limited to your social security number.
  • Business owners often make the mistake of personally guaranteeing loans and financed items. They don’t have to do that if they build and properly develop the business / commercial credit off the company EIN.

Knowing all that, you can see why it’s important to not only report personal credit matter to the credit bureaus, it’s also important to report business credit to the bureaus. Datalinx, LLC is here to help you with that. Get started with reporting business/commercial credit by filling out the short form to your right!


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