This post was originally published on On Deck
As a small business owner, understanding the difference between your personal credit score and your business credit score is important. Both these numbers can impact you and your business’s finances.
Learning how each score works, where to use them and why they’re important can help you grow your business to new heights and keep your personal finances on track.
What’s the difference between business credit and personal credit?
The main difference between business and personal credit (also known as consumer credit) is that business credit reflects how your company manages debt and finances, while personal credit measures your individual financial behavior. Each is tracked separately and used for different types of borrowing.
Here’s how they compare:
Factor Business Credit Personal Credit Who it’s tied to Your business entity You as an individual Credit bureaus Dun & Bradstreet, Experian Business, Equifax Business Experian, Equifax, TransUnion What it tracks Business loans, business credit cards, business lines of credit, vendor accounts, payment history Personal credit cards, mortgages, personal loans Score range Typically 0 – 100 Typically 300 – 850 Reporting behavior Some lenders or vendors may only report to bureaus
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