How Do I Build Business Credit? (Experian)

  • Your company’s identifying information
  • Account payment information
  • Public record information
  • Inquiries

It will also include background information about your company and your business credit score.

How Is My Business Credit Score Calculated?

Business credit scores range from 0 to 100. A higher score represents a lower risk to lenders. The following are factors that contribute to your business credit score:

  • Number of trade experiences
  • Outstanding balances
  • Payment habits
  • Credit utilization
  • Trends over time
  • Public record recency, frequency and dollar amount
  • Demographics such as years on file, SIC codes and business size

Keeping Business and Personal Credit Separate

While your business and personal credit reports are separate, small business owners often use their personal credit to apply for and secure credit accounts used for their business. Although it may seem necessary when starting out, using your personal name and credit when applying for a business account can be risky.

Using your personal credit when applying for an account means that you are agreeing to be personally responsible for the debt. As a result, that account and its payment history may appear on your personal credit history as well your business credit history.

If your business encounters financial difficulty and you are unable to manage those debts, your personal credit can be negatively impacted. Therefore, it’s important to understand the risks associated with using your individual credit history to obtain business credit before opening accounts in your name.

Separating your personal credit from your business’s credit as soon as possible will help protect both.

Thanks for asking.
Jennifer White, Consumer Education Specialist

References

  1. ^ establishing business credit (www.experian.com)
  2. ^ business credit card (www.experian.com)
  3. ^ loan (www.experian.com)
  4. ^ credit utilization (www.experian.com)
  5. ^ .u5b0c607375551984bbca8f5e234e04f8 { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#2980B9; border:0!important; border-left:4px solid inherit!important; box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -moz-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -o-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -webkit-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); text-decoration:none; } .u5b0c607375551984bbca8f5e234e04f8:active, .u5b0c607375551984bbca8f5e234e04f8:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .u5b0c607375551984bbca8f5e234e04f8 { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 0.8; transition: opacity 250ms; webkit-transition: opacity 250ms; } .u5b0c607375551984bbca8f5e234e04f8 .ctaText { font-weight:bold; color:#e6e6e6; text-decoration:none; font-size: 16px; } .u5b0c607375551984bbca8f5e234e04f8 .postTitle { color:#FFFFFF; text-decoration: underline!important; font-size: 16px; } .u5b0c607375551984bbca8f5e234e04f8:hover .postTitle { text-decoration: underline!important; } More:  COVID-19: Consumers Reduce Overall Debt During Pandemic (www.companynewshq.com)
  6. ^ website (sbcr.experian.com)
  7. ^ Business Credit Advantage (www.experian.com)
  8. ^ .u6f9deea5adc4453b5fbcd2e8eea2a587 { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#2980B9; border:0!important; border-left:4px solid inherit!important; box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -moz-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -o-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -webkit-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); text-decoration:none; } .u6f9deea5adc4453b5fbcd2e8eea2a587:active, .u6f9deea5adc4453b5fbcd2e8eea2a587:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .u6f9deea5adc4453b5fbcd2e8eea2a587 { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 0.8; transition: opacity 250ms; webkit-transition: opacity 250ms; } .u6f9deea5adc4453b5fbcd2e8eea2a587 .ctaText { font-weight:bold; color:#e6e6e6; text-decoration:none; font-size: 16px; } .u6f9deea5adc4453b5fbcd2e8eea2a587 .postTitle { color:#FFFFFF; text-decoration: underline!important; font-size: 16px; } .u6f9deea5adc4453b5fbcd2e8eea2a587:hover .postTitle { text-decoration: underline!important; } More:  How to Lower Monthly Mortgage Payments (www.companynewshq.com)
1 2 3 4

Share