Do Credit Checks Lower My Business Credit Score?

This post was originally published on On Deck

As a small business owner, your credit score is a crucial part of your financial identity. Establishing and maintaining strong business credit can help you negotiate better terms with suppliers, reduce insurance premiums, manage your operational expenses and even increase your appeal to potential partners. Additionally, many lenders look at your business credit profile to determine your eligibility for financing.

But what happens when a lender checks your credit? Does it impact your credit score?

The answer depends on a number of factors. Credit checks can be performed on both your business and personal credit. They can be hard checks or soft checks. And different business credit scores are impacted differently. We’ll clarify these points and help you understand the effect of credit checks on your business credit score.

Do Credit Checks for Business Financing Lower My Credit Score?

If you apply for business financing, a hard credit check on your personal credit has the potential to impact your personal credit score. Any negative impact that might occur generally happens when there are too many inquiries in a short period of time. Soft credit checks, on the other hand, typically do not impact your FICO® score, but different types of

Read the rest of this post, which was originally published on On Deck.

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