What is the difference between business and personal... - Credit Cards for Business FAQ

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Credit Card Applications » Questions » FAQs » Credit Cards for Business » What is the difference between business and personal credit rating?

What is the difference between business and personal credit rating?

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Business credit rating is a rating of a particular corporation or a small business company. The business credit score can be and should be separate from your personal credit score. When these two scores are separate, your personal and business financial risks are separate as well.

Tree major credit bureaus (Experian, Equifax and TransUnion) track personal credit histories. They also have small business divisions that are aimed for tracking business credit histories. Another well-known business credit reporting agency is Dun & Bradstreet® (D&B®).

Business credit bureaus use companies Employer Identification Number (EIN) to accurately report the business credit histories. For personal credit reporting a Social Security Number is used. Business credit history, as well as personal credit history, is based on payment history, total amount of credit and revenue. But business credit rating is also determined by information gathered from a business’s vendors, suppliers, and other trade accounts.

All credit cards terms, fees and rates mentioned in this article/post are actual on the posting date. See the current products’ Terms & Conditions on the issuing banks' websites.
  • Imani Trapp

    Hi Im Imani and I would like some coaching on building my personal and business credit. I have a job, I have access to using my mom’s home to help build my credit and I also registered and started a business this year. I need a strategic plan to position things so I can capitalize on my current opportunities…

    • CreditLandCom

      To start, you can apply for a personal credit card. Do not apply for too many credit cards at once, that won’t be good for your credit. Once you have a personal credit card, refrain from applying for new credit cards for at least six months or a year – switch to gardening mode and build some credit history. In addition to personal cards, you can get a business credit card to separate your personal spendings from business expenses. And a business credit card will help you build your business credit.

      This is just an outline of what you can do to build your personal and business credit. You can make some changes on the go and as you get a better understanding of what strategies work for you best. Just remember to regularly check your credit reports and credit scores to make sure you are on the right way.

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