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Good news, business credit has no impact on the business owner’s personal credit.

Good news, business credit has no impact on the business owner’s personal credit.

When done correctly, business credit is obtained without the SSN being provided on the application.

This means that there is no credit check by the business owner to be approved. This also means that anyone who has bad, even horrible personal credit can still be approved for business credit.

Reports to commercial credit reporting agencies, not consumer credit reporting agencies.

So it does not have an adverse impact on the homeowner’s consumer credit because it is not reported to consumer agencies.

This means that using the account, even more than 30%, will have no adverse impact on personal scores.

And there are no questions about personal credit when you apply for business credit, as long as you don’t provide your SSN.

30% of your total consumer score is based on usage, so if you use your personal cards for your business and using those cards will lower your scores. Using more than 30% of your limit WILL result in a decreased score

So if your limit is $1,000, having a balance over $300 lowers your scores. This means that 40% of your total score is damaged. With true business credit, 0% of your score is affected.

10% of your total consumer score is based on inquiries, so if you’re using your personal credit to apply for loans and business credit, your scores will drop as a result of those inquiries.

Also, those queries can stay with you for an extended period of time, affecting your ability to borrow more money.

And some unsecured business loan sources won’t even lend you money if you have two or more inquiries on your personal credit reports within six months.

Credit does not report to consumer bureaus, so neither inquiries nor usage have any effect on your consumer scores.

How to devalue your business

Anyone who has ever sold or bought a business will tell you the importance.

Extensive information about your business can easily be obtained by all potential buyers, just by obtaining your business credit report…which can be obtained by anyone who wants it.

This means they will quickly learn details about your business, including:

• Credit scores
• High credit limits
• Past Payment Performance
• Employees
• Entry

And much more…

Now that you know how easy it is to get extensive credit and financial information for a business, if you were a buyer, wouldn’t you get it?

Based on your company’s credit report, would you like to buy your company?

Does your report reflect that your company is “established”, does it show that it pays its bills, does it look like a successful company according to your report?

If you could choose between two companies to buy that were equal in every way except trade credit, which would you buy…

… The one with very limited or no credit profile… or one with a credit profile that reflects good payment performance, and one with available credit.

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